How many contracts to trade?

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Peblo

OK. Assuming you pass any of these combines, tryouts, etc. - how many contracts would you trade as a max position size? Would you go with whatever the firm gives you? I mean - 15 lots in ES or GC or CL with a max drawdown of $4,500 - is that not completely insane? In other words - can you be a professional trader starting out with a $4,500 drawdown limit?
 
I am not aware of a legitimate CME-registered electronic membership proprietary trading firm that has "combines" and "tryouts". I am referring to firms like DRW, Geneva, Belvidere, Jump, Peak 6... Since you are risking only the firm's capital - the firm's risk manager and your manager sets your daily position limits and risk parameters.

Peblo said:
OK. Assuming you pass any of these combines, tryouts, etc. - how many contracts would you trade as a max position size? Would you go with whatever the firm gives you? I mean - 15 lots in ES or GC or CL with a max drawdown of $4,500 - is that not completely insane? In other words - can you be a professional trader starting out with a $4,500 drawdown limit?
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OK, bone. What would be the amount of money and position sizes those big swinging dicks would allow their fancy algos to lose? I mean - 15 lots and $4,500, really? A bit disproportionate?
 
Peblo said:
OK, bone. What would be the amount of money and position sizes those big swinging dicks would allow their fancy algos to lose? I mean - 15 lots and $4,500, really? A bit disproportionate?
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If you've proven yourself, they will encourage you to take as many as you can. And I mean take them all.

Starting out, you will be paid a very very modest living wage and you will start out trading small size. Once you've proven consistency - they will lever you very quickly. "Proving consistency" being the operative term. They could care less what you've shown in some "combine". You will need to show consistency there in their office live and in person. If you're not consistent you won't last long. They collect and nurture consistent traders.
 
Contract is the unknown to solve.
If your optimal bet size is 5%.
Each point’s worth 50$.
Bankroll 4500.

4500 x 0.05 = 225$ risk per trade

Your setup is 5pts risk, 10pts reward.
225$ Risk / (5pts x 50$ = 500$)
Which is 0.5 contracts LMAO.

You can’t trade if not over betting.

Or risk 2.5pts with 1 contract

I am myself at TST combine #2.
Daily risk is 3K for 150K account.
But if you make +1K then it’s 1+3=4K

You might start small.
And increase your size as you accumulate.

Only traders with a high kelly can trade with them.
 
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@bone
I would just be grateful for specific numbers from those firms if you could kindly reveal them - like, $1k daily loss with 10 contracts max. I just have no idea what size is APPROPRIATE
 
Peblo said:
@bone
I would just be grateful for specific numbers from those firms if you could kindly reveal them - like, $1k daily loss with 10 contracts max. I just have no idea what size is APPROPRIATE
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Get hired by a CME registered proprietary trading firm first like DRW or TransMarket. You're essentially asking a silly hypothetical question that's beside the point. DRW and TransMarket will set your sizing for you. They determine that - not you.

When I got hired at ITG, I started out trading one and two lots, in several months was trading hundred lots, and in eighteen months was trading thousand lots with permission to hold three thousand contracts at a time. Because I was consistent.
 
Peblo said:
how many contracts would you trade as a max position size? Would you go with whatever the firm gives you? I mean - 15 lots in ES or GC or CL with a max drawdown of $4,500 - is that not completely insane? In other words - can you be a professional trader starting out with a $4,500 drawdown limit?
More...
mr peblo,
here's some info to have on tap on position sizing.
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chapters 4, 5 & 6 might be worth a browse...
https://elitetrader.com/et/threads/fixed-ratio-position-sizing-money-management.303441/#post-5012086
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unless and until you find something better, this ain't half bad...
-
 
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