What is the ideal account size for trading futures?
Account size
- Thread starter joey juneau
- Start date
how small of an account ideal to trade with?
Depends on the tick value of the instrument.
And how much you're willing to risk per trade.
As well as how much ticks does your SL contains.
Exemple :
Tick Value : 10$
#SL Ticks : 10 ticks
Max Risk : 5% of account
Account = ((Tick Value x #SL Ticks) x 100) / Max Risk
Account = ((10 x 10) x 100) / 5
Account = 2000$ Minimum*
*Per Contract.
Max Risk is the only unknown,
And this isn't an arbitrary number.
Look for the Kelly Criterion. Max Return.
But of course ... Optimize for Min Risk of Ruin.
And how much you're willing to risk per trade.
As well as how much ticks does your SL contains.
Exemple :
Tick Value : 10$
#SL Ticks : 10 ticks
Max Risk : 5% of account
Account = ((Tick Value x #SL Ticks) x 100) / Max Risk
Account = ((10 x 10) x 100) / 5
Account = 2000$ Minimum*
*Per Contract.
Max Risk is the only unknown,
And this isn't an arbitrary number.
Look for the Kelly Criterion. Max Return.
But of course ... Optimize for Min Risk of Ruin.
Last edited:
ok wow that's interesting!
depending of the goals: for masturbation or for living?
For masturbation > For living XD
Oh ... maybe your wife is a porn star.
See ? Mr Johnson has way higher standards.
Kiddin ' ... By the way ... I am ultra serious while ...
Depending if you are looking to day trade or hold positions overnight. If you hold positions overnight you will need full initial margin per contract.
Day trading, I say at least $2500.00, swing trading (holding positions overnight) I say at least $5-$10K. Just my opinion
Day trading, I say at least $2500.00, swing trading (holding positions overnight) I say at least $5-$10K. Just my opinion
ok awesome! thank you
This is how I check my day trading margins and overnight margins with my broker
http://www.e-futures.com/margin-requirements.php