ES Journal - 2019/2020

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Overnight said:
What exactly do you mean when you say you are trading 10X leverage? I.E. How many contracts are you doing per trade, and what is the account size? Wondering where you get the 10X figure from.
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It means I would have 12,250 roughly behind each contract. Total value of one contract being roughly 122,500. For example,at 2 X leverage, I would have roughly 61,250 backing up each contract. --based upon today's pricing.
 
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Buy1Sell2 said:
It means I would have 12,250 roughly behind each contract. Total value of one contract being roughly 122,500. For example,at 2 X margin, I would have roughly 61,250 backing up each contract. --based upon today's pricing.
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What it does basically is allows me to bring my stop in much closer and when right reap a much larger benefit. For example if I were to lose say 12 pts ($600) it would represent about 5% of the cash allotted to the trade. However since trading acct are at or less than 20% of TLNW, then the loss on the big picture is only about 1 percent or a little less.----and I advocate not losing more than 2 percent of TLNW on any one trade/idea. Now, if the acct is the entirety of TLNW and your balance was 12,250, then the max stop loss would have to be say 4 or 4.5 pts. The acct would not be able to sustain a 12 pt loss.
 
Buy1Sell2 said:
It means I would have 12,250 roughly behind each contract. Total value of one contract being roughly 122,500. For example,at 2 X margin, I would have roughly 61,250 backing up each contract. --based upon today's pricing.
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Hmm, you lost me there. 12,250 behind a single contract valued at 122,500 is 10X leverage. At that same leverage ratio, having 61,250 behind a contract means the contract value would be 612,500 for 10X leverage?

Not sure where margin comes into play there at some 2X number...

I THINK what you meant is that 61,250 behind the contract value of 122,250 is 2X leverage, not margin. :)
 
Overnight said:
Hmm, you lost me there. 12,250 behind a single contract valued at 122,500 is 10X leverage. At that same leverage ratio, having 61,250 behind a contract means the contract value would be 612,500 for 10X leverage?

Not sure where margin comes into play there at some 2X number...
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If I put 61250 behind a contract value is at 122,500, I am trading at 2X leverage. If I have 61250 in trading acct and I want to trade at 10 X leverage, I can trade 5 contracts instead of 1. This necessarily forces me to bring my stop in closer---not 60 or 90 points.
 
Buy1Sell2 said:
If I put 61250 behind a contract value is at 122,500, I am trading at 2X leverage. If I have 61250 in trading acct and I want to trade at 10 X leverage, I can trade 5 contracts instead of 1. This necessarily forces me to bring my stop in closer---not 60 or 90 points.
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See my edited post above yours, I get it, heh.
 
Overnight said:
Hmm, you lost me there. 12,250 behind a single contract valued at 122,500 is 10X leverage. At that same leverage ratio, having 61,250 behind a contract means the contract value would be 612,500 for 10X leverage?

Not sure where margin comes into play there at some 2X number...

I THINK what you meant is that 61,250 behind the contract value of 122,250 is 2X leverage, not margin. :)
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I occasionally speak about leverage and use the term margin. Sorry. I edited my earlier posting to leverage.
 
Buy1Sell2 said:
Over the next several sessions, I will present trades based upon the 1 minute chart unless otherwise specified. These will be intraday day trades at 10 X leverage unless otherwise specified. We'll then take a look at results. I typically am not posting my 1 minute chart trades since it's intensive in terms of posting.
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I believe people are most interested in the intraday trades so I will focus on getting those in the journal at least for a while. My longer term trades can last weeks and months. :)
 
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