Learn more about the Weighted Scale In & Out tool.
Learn what Weighted Scale In and Out is, why it can work better than timing the market, and how to customise your own buying or selling strategy with CALC.
What is the Weighted Scale tool?
Weighted Scale In and Out is an investment technique that employs a thoughtful and dynamic approach to adjusting positions based on favorable price movements. It differs from conventional investment strategies that rely on fixed buy or sell prices. Instead, Weighted Scale In and Out empowers you to establish a "swap multiplier" ranging from 0.1x to 10x.
Here's how it works:
When the price of an asset surpasses or drops below a predetermined threshold that prompts a swap, CALC's Weighted Scale In and Out strategies come into play. With the chosen swap multiplier, the system calculates the extent of the swap. If the price is in your favor and falls below the specified threshold, a greater proportion of the asset will be swapped. Conversely, if the price rises above the designated threshold, the swap will be proportionally reduced.By incorporating the swap multiplier, Weighted Scale In and Out strategies allow investors to customize and fine-tune their position adjustments based on their specific preferences and market conditions. This approach ensures a more nuanced and responsive investment strategy, enhancing the potential for optimized returns.
Key Points
- Weighted Scale In/Out allows for dynamic adjustment of positions based on favorable price movements.
- It differs from conventional strategies with fixed buy/sell prices.
- Users can establish a "swap multiplier" between 0.1x to 10x.
- A greater proportion is swapped if the price falls below the threshold and the swap is reduced if the price rises above the threshold.
- Investors can customize and fine-tune their position adjustments.
- The approach enhances responsiveness and potential returns.
