Futures account size for trading

[CannonTrading_Ilan]

My personal input as a broker who have assisted and seen MANY accounts.....
Micro day trading $2500
minis/crude/gold day trading 15k-25k
Swing trading $50k
Selling premium 25k-50k
Must fit ones risk capital and tolerance...

 

[murray t turtle]

This depends on your max drawdown and cushion needed for margin, nothing more.

So for example, if you have a win rate of 50% you can expect ~ losing streak of 10 over 1000 trades if every trade is independent.
If you lose $500 each time, then you need a drawdown of at least $5000. I'd double this because you can have a losing streak of 10, a winner and then another losing streak.

Then the rest of the account should be funded according to the margin needed to trade the size you desire. I'd double this as well.

Given a win rate of 50% with a 2/1 win/loss ratio where you lose $500 when you're wrong, then I would fund it with a minimum of 20K if you're using a discount futures broker.

If you don't know these numbers then you shouldn't try to fund an account yet.

%5
THAT looks right;
like any trade/investment what ever you are willing to lose-- not that 's that the main goal.
BUT since there is no such thing as business with no expenses[losses], that number helps.........

 

[DevBru]

$500-$1000 for micros. $2000-5000 for full contracts. However with high volatility many (or all) brokers raise the requirements on the full contracts. I've seen it go up to $16k back in 2020, guessing it may be $20k now. I haven't traded my personal account in a while, so maybe someone else knows better.

500 for micro's? Not going to last long in these volatile times.

Starting underfunded is possible one of the major reasons many fail.

 

[Gasparov]

500 for micro's? Not going to last long in these volatile times.

Starting underfunded is possible one of the major reasons many fail.

I assume the trader knows what he is doing. If so, 500 is plenty for 1 micro, though beyond 2 is kind of pushing it.

 

[DevBru]

I assume the trader knows what he is doing. If so, 500 is plenty for 1 micro, though beyond 2 is kind of pushing it.

In ES, maybe, in NQ? Not a chance.

In volatile markets like these 10-20 point stops don't work in NQ. When a 50 point stop gets triggered 20% of the account is gone.

 

[Gasparov]

In ES, maybe, in NQ? Not a chance.

In volatile markets like these 10-20 point stops don't work in NQ. When a 50 point stop gets triggered 20% of the account is gone.

well in my experience, if you need a 50 point stop that often, you are probably not taking proper entries

 

[Spmastertrading]

Back 2003 ,emini sp500 range 20 point range per day was amazing now i see 120 point drop like a butter ,do calculation if you lose 10 point in single contract, that is sa easy, to get stop down ,in that kind of volatility.To made that money back during tha day you have to have minimum $25 000 .THEN you feel comfortable .To trading 1-2 contract .But if my time come I will increse to 10 lot if i see perfect move but dont hold more then 5-8 point because to much risk.
For 10 lot I fell comfortable about $120-150k.
Be conservative get $10k per lot you never get burn if you made some mistake,is always other trade next day.

 

[Overnight]

well in my experience, if you need a 50 point stop that often, you are probably not taking proper entries

That is a load of horseshit. You KNOW how much the daily ranges have expanded over the past few years, so to claim 50-point stops means a bad entry is also horseshit. C'mon, man!

 

[Gasparov]

That is a load of horseshit. You KNOW how much the daily ranges have expanded over the past few years, so to claim 50-point stops means a bad entry is also horseshit. C'mon, man!

LOL alright then, well I aim for precision so I never want an entry that will go against me that far. that's ludicrous, especially trading a full e-mini. but to each their own

 

[Overnight]

LOL alright then, well I aim for precision so I never want an entry that will go against me that far. that's ludicrous, especially trading a full e-mini. but to each their own

These days, use a 5 point stop in the ES on any given day, with a 5 point target for the 1:1 R:R, and you will go NOWHERE. You KNOW this.

So what is the proper stop? There IS NONE! It is too wacky! Every entry is wrong with ranges like this! It is luck now!