A Power Scale-In carefully orchestrates scaling into your position to meet your personalised risk and profit parameters. It will literally give it "all you got" (...in your account). By doing so the conscious aim of the strategy is to build the largest possible position and it is that large position that makes it IMPERATIVE that you consider the risks below, play through scenarios and are ready to act if 💩 hits the fan.
To drum this home: Imagine you just hit your perfect trade. Nice move up in ES. With your $10,000 account you went all-in and a successful Power Scale-In got you safely to running a position of 20 contracts at $500 margin per contract without risking more than the initial $100. That makes every additional point worth $1,000 (!!). That's 10% of your account up/down PER POINT. Now imagine your internet cuts out... or you have a pandemic announced and 3 points slippage in getting out.
At full leverage everyday market noise can wipe your account, so read this non-extensive list very carefully!
Slippage
When closing a larger position take into consideration that slippage is more likely to occur. You may not be able to get out as fast as you would like.
Price spikes
A Power Scale-In usually has a protective stop in place. During price spikes you may not get filled at the nominated price and slippage can occur.
Technology failure
Have a plan for what to do if all of a sudden your laptop looses power or decides to run a forced upgrade and you can't do anything for a few minutes.
Loss of connection
What if you loose internet connectivity in the middle of your trade? Have a backup and understand what happens to the positions and orders you have on your platform and/or with your broker.
Nightmare on Wall Street
Below is a quick list of risk scenarios you should think about. Let's hope they never happen to you:
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Loss of internet (with a large position and/or with 25 pending orders)
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Computer crash / blue screen
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Platform failure - shutting down / sluggish / freezing
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Unexpected news announcement (earthquake, pandemic etc.)
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Software failure - you are seeing unexpected behaviour from your trading platform
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Your platform license expires
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Your brokers internet/systems break down
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Trading halt is put in place by the exchange
