“Taper in, taper out” is a term used to describe a trading strategy that involves gradually increasing or decreasing a position over time. The idea behind this strategy is to avoid market volatility and reduce the risk of entering or exiting a position at the wrong time.
For example, when entering a new position, a trader might use the taper in strategy to gradually buy into the market over a period of time instead of buying all at once. This approach allows the trader to take advantage of potential price dips and average down their cost. Similarly, when exiting a position, a trader might use the taper out strategy to gradually sell their position instead of selling all at once. This can help mitigate the risk of selling at a low price.
