Trading 106: Trade Execution & Management Strategies on MT5 / Scaling In & Scaling Out of Trades

Step 1: Scaling In & Scaling Out of Trades

Scaling in/out means adjusting your position size as the market moves in your favor or against you.

1. Scaling In (Adding to a Winning Trade)

If the trade moves in your favor, you can add to your position to maximize gains.

🔹 How to Do It on MT5:

• Open a second position in the same direction when price confirms momentum.
• Keep each new position smaller to reduce risk.
• Move stop-losses of previous trades to breakeven to protect capital.

📌 Example:

• Initial Buy: EUR/USD at 1.1000, 0.5 lots.
• Price moves to 1.1020, confirm uptrend → Add 0.3 lots.
• Price reaches 1.1040, confirm further strength → Add 0.2 lots.
• Stop-loss for first position moved to 1.1010 to lock in profits.

✅ Scaling in works best in strong trends and helps maximize profits while minimizing initial risk.

2. Scaling Out (Closing Part of a Trade to Secure Profit)

Instead of closing the full position at once, you can take partial profits as price moves in your favor.

🔹 How to Do It on MT5:

• In the Trade tab, right-click your open trade and select Modify or Close Order.
• Adjust the lot size to close only a portion of the trade.
• Keep the remaining position open to target higher profits.

📌 Example:

• Buy 1 lot at 1.1000 with a target of 1.1050.
• When price reaches 1.1030, close 50% of the trade (0.5 lots).
• Let the remaining 0.5 lots run to the final target.

✅ Scaling out locks in profits while keeping the trade running for more gains.

Step 2: Using Trailing Stop-Losses to Lock in Profits

A trailing stop-loss (TSL) automatically moves your stop-loss as price moves in your favor, helping to secure profits while letting winners run.

How It Works:

• If price moves X pips in profit, the stop-loss moves X pips higher (for buys) or lower (for sells).
• If price reverses by X pips, the trade closes automatically.

🔹 How to Set a Trailing Stop on MT5:

1. Right-click your open trade in the Trade tab.
2. Select Trailing Stop and choose the number of pips to trail (e.g., 10 pips).
3. MT5 will automatically move your SL as price moves in your favor.

📌 Example:

• Buy at 1.1000 with a 20-pip trailing stop.
• Price moves to 1.1020, SL moves to 1.1000 (breakeven).
• Price moves to 1.1050, SL moves to 1.1030.
• If price drops to 1.1030, trade closes with 30 pips profit.

✅ Trailing stops protect profits without needing manual adjustments.

Step 3: Managing Active Trades on MT5

Once your trade is open, you can adjust SL, TP, and lot sizes to optimize performance.

1. Adjusting Stop-Loss & Take-Profit

🔹 How to Modify on MT5:

• Go to the Trade tab, right-click your trade → Modify Order.
• Change Stop-Loss (SL) and Take-Profit (TP) levels.
• Click Modify to save.

📌 Example:

• Initial TP: 1.1050, but price is struggling at 1.1035.
• Adjust TP down to 1.1030 to secure gains before a reversal.

✅ Be flexible—if market conditions change, adjust SL/TP accordingly.

2. Closing Trades in Stages

Instead of exiting all at once, close trades in parts.

🔹 How to Close Partial Trades on MT5:

• Right-click trade in Trade tab → Select Modify Order.
• Change Volume (lot size) to close only part of the trade.

📌 Example:

• Buy 1 lot at 1.1000 with TP at 1.1050.
• At 1.1025, close 0.5 lots for profit.
• Let the remaining 0.5 lots run to 1.1050.

✅ This method locks in profits while allowing for further gains.

Step 4: Common Trade Management Mistakes to Avoid

🚫 Moving Stop-Loss Against You – Never widen your SL to avoid a loss; accept small losses.
🚫 Closing Trades Too Early – Let profits run using trailing stops or scaling out.
🚫 Over-Scaling In (Too Many Additions) – Adding too many positions increases risk.
🚫 Ignoring Market Conditions – Adjust trade management based on volatility and trend strength.

How to Stay Disciplined:

✅ Stick to your original risk plan (don’t chase price).
✅ Monitor news events that can affect volatility.
✅ Use alerts instead of watching charts constantly.

Step 5: Journaling Your Trade Management Strategy

Modify your trade journal to track trade management decisions:

📌 End-of-Session Review:

• Did you scale in or out at the right time?
• Did you set and follow trailing stops?
• Were your adjustments logical, or did you exit emotionally?

Conclusion: What You Should Learn from This Lesson

✅ How to scale in and scale out of positions to maximize gains.
✅ How to use trailing stops to lock in profits.
✅ How to adjust trades in real-time using MT5 tools.
✅ How to journal trade management to improve decision-making.