ES Contract Sizing

[onemoreshot]

My thoughts:

$10,000 balance required for 1st contract, add another contract for each $1,000 of profit generated per contract. In the same way subtract contracts for drawdowns.

$10,000 balance = 1 lot
$11,000 balance = 2 lot
$13,000 balance = 3 lot
$16,000 balance = 4 lot
$20,000 balance = 5 lot
Drawdown to $18,000 = reduce to 4 lot
Drawdown to $15,000 = reduce to 3 lot

Any suggestions on ES sizing other than $10,000 per contract, which I don't believe is necessary for short term scalping.

 

[Handle123]

My thoughts:

$10,000 balance = 1 lot
$11,000 balance = 2 lot
$13,000 balance = 3 lot
$16,000 balance = 4 lot
$20,000 balance = 5 lot
Drawdown to $18,000 = reduce to 4 lot
Drawdown to $15,000 = reduce to 3 lot

Any suggestions on ES sizing other than $10,000 per contract, which I don't believe is necessary for short term scalping.

Being that I started when Big S&P500 was king, margin back then was $12,000. ES is now a joke, drawing out anyone that has huge ego and nails for brains. Commissions actually were cheaper back then cause each tick was $25 and traded in nickels, more bang for the buck. When I had to switch to ES I did:

$10,000 balance = 1 lot
$17,000 balance = 2 lot
$24,000 balance = 3 lot
$31,000 balance = 4 lot
$38,000 balance = 5 lot
Drawdown to $31,000 = reduce to 4 lot
Drawdown to $24,000 = reduce to 3 lot

Sizing isn't about how much you can make and margin, it is about how much knowledge you have, way too many start with huge accounts and no education and get wiped out. Building the account slowly allows for steady equity curve. I set a daily goal, when reached, I reduce contract size 80 % so as not to have a losing day after making my "nut". If anyone thinks "Flash" crashes can't occur again or your stop will be filled at middle of range, one is delusional. And in the beginning, huge stress for most going from one lot to two, then five, ten, as numbers go up, one gets use to stresses till you reach 50 and see each tick is $625 in ES, your brain starts messing with you of what you losing on each tick and what you can buy with that. You have to keep thinking in percentages of account size so those thoughts go away. And bad days for me are always so much worse than great days. But you have to make trading a game and think of the money as something else like percentages, otheriwise the numbers will tear you up.

Good luck.

 

[onemoreshot]

Being that I started when Big S&P500 was king, margin back then was $12,000. ES is now a joke, drawing out anyone that has huge ego and nails for brains. Commissions actually were cheaper back then cause each tick was $25 and traded in nickels, more bang for the buck. When I had to switch to ES I did:

$10,000 balance = 1 lot
$17,000 balance = 2 lot
$24,000 balance = 3 lot
$31,000 balance = 4 lot
$38,000 balance = 5 lot
Drawdown to $31,000 = reduce to 4 lot
Drawdown to $24,000 = reduce to 3 lot

Sizing isn't about how much you can make and margin, it is about how much knowledge you have, way too many start with huge accounts and no education and get wiped out. Building the account slowly allows for steady equity curve. I set a daily goal, when reached, I reduce contract size 80 % so as not to have a losing day after making my "nut". If anyone thinks "Flash" crashes can't occur again or your stop will be filled at middle of range, one is delusional. And in the beginning, huge stress for most going from one lot to two, then five, ten, as numbers go up, one gets use to stresses till you reach 50 and see each tick is $625 in ES, your brain starts messing with you of what you losing on each tick and what you can buy with that. You have to keep thinking in percentages of account size so those thoughts go away. And bad days for me are always so much worse than great days. But you have to make trading a game and think of the money as something else like percentages, otheriwise the numbers will tear you up.

Good luck.

Great advice Handle, thank you.