I'm trying to get a better understanding of risk management and position sizing when trading futures contracts -- for YM and ES -- for position traders, not daytraders.
In equities my position sizing rules are:
1) I risk/bet 1% of my account per trade
2) I calculate my initial stop loss based on volatility using ATR
3) position_size = (account_size * 1%)/(initial_stop_loss)
4) A single position cannot exceed 10% of the total account size
These rules work remarkably well for me.
What is the equivalent of this with futures contracts?
In equities my position sizing rules are:
1) I risk/bet 1% of my account per trade
2) I calculate my initial stop loss based on volatility using ATR
3) position_size = (account_size * 1%)/(initial_stop_loss)
4) A single position cannot exceed 10% of the total account size
These rules work remarkably well for me.
What is the equivalent of this with futures contracts?