Scaling out
Selling a position in parts as it rises instead of making one decision to exit: part of the result is secured while the remainder keeps participating.
How to read the number
The technique does not improve expected value; it reduces regret, by guaranteeing that no scenario turns out to have been an entirely wrong decision.
When the metric lies
Systematically trimming winners while holding losers tilts a portfolio towards its worst ideas. Every partial sale is also a separate trade with a commission and a tax event.
Also known as: selling in tranches