moving from 1 ES contract to 2 contracts
- Thread starter wiesman02
- Start date
Here's my simple rule of thumb:
If you can make $10,000 within any one month timeframe (roughly 22 trading days), then you can trade 2 lots in the second month with the stated objective of making $20,000. Once that goal is met you move up to 3-lots/$30,000 in the third month, etc. However, should you fall short of the monthly goal, then you reduce the trading size by one lot. Therefore, if you were trading 3-lots/$30,000 in the previous month, you will reduce the size to 2-lots/$20,000 and repeat the process.
When I read his post I just about fell out my chair. Say what?
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Quote from austinp:
you purportedly make +60pts to +100pts per week, per ES contract... and you're nervous about trading two contracts at a time?
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I did fall out of my chair.
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Quote from austinp:
you purportedly make +60pts to +100pts per week, per ES contract... and you're nervous about trading two contracts at a time?
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I did fall out of my chair.
I find the best way to get used to size is to wait until you have a good open, not bad, not excellent. You should be in a comfortable zone and then add one more in. Then move back to one if you go negative on the day. If you still are doing well with 2 contracts at the end of the day you've probably made some decent cash. The next day start with 1 again. Repeat for a week. This will help you a) try to start the days off right if you know you cannot trade more unless you have a good start. b) learn to SCALE DOWN when you start turning negative. Eventually you are going to have a solid 2-4 days in a row, this is when you can start to stay at 2, after you have a bit of a capital buffer from the solid performance.
Lastly I would say if you have a negative day, go back to 1 contract to start the next day. Most people will think opposite but you need to remember to scale down after a down day and this is conservative, but risk management is half the battle. No point in chasing. You will probably do fine moving to 2 contracts but do so with caution and being risk adverse.
Lastly I would say if you have a negative day, go back to 1 contract to start the next day. Most people will think opposite but you need to remember to scale down after a down day and this is conservative, but risk management is half the battle. No point in chasing. You will probably do fine moving to 2 contracts but do so with caution and being risk adverse.
Start with 1 contract and a 100 points ($5) account.
When you made 100 points of net profit ($5k after all fees) pull that profit from your account and continue with 1 contract.
When you made another 100 points of net profit, start trading 2 contracts.
Then with each 100 more points of net profit add another contract.
At $200 / week you'll add one more contract every 25 weeks ... At $500 / week, every 10 weeks (3 months). Enjoy compounding!
Just set your P/L window to show POINTS instead of DOLLARS. I know you can do this on OEC... don't know about other brokers. Anyway, then you'll see like +2.5 and all you'll care about is points and you won't actually SEE $125 or $250 or whatever depending on how many contracts you use, cuz it won't matter.