Need help trading "size" in the NQ's

[jester]

...if someone was going to trade a very large account and focus strictly on the NQ's, what is an appropriate lot size that can be moved quickly without a lot of slippage or am I being very naive here?

Let me give a suggested account size;

A) Managing a trading account of $500,000.00
b) What lot size is appropriate to "maximize" returns for that size account? Should you get in on a large lot size and then scale out of positions, how about when a trade goes against you, what is the largest lot size you can move quickly?

Any help or ideas appreciated.... Am I even asking the "right" questions? I am seriously looking for some answers.

J-

 

[Lobster]

If you consider $500k a large account you should have no problem whatsoever trading the NQ any way you like.

 

[jester]

ok then I can assume by your answer if I wanted to trade 300 or 500 lot positions at a single "signal" several times a day ....that size shouldn't be any problem to get filled, exit's etc...?

thanks in advance for your help...

J-

 

[Pabst]

Quote from jester:

ok then I can assume by your answer if I wanted to trade 300 or 500 lot positions at a single "signal" several times a day ....that size shouldn't be any problem to get filled, exit's etc...?

thanks in advance for your help...

J-

Only a moron would trade 300-500 NQ with a half million. Now I know why your name is Jester.

 

[RAY]

I think you would do yourself well to come in just below that 500NQ per trade figure. Maybe start at 5.

 

[Pabst]

Jester BTW, I know you are not a moron, actually you seem pretty bright, so why the need to overtrade? Please explain!

 

[jester]

..thanks I am trying to learn money management and proper "bet sizing"....I was afraid when I posted this question,.. my naivette' in this matter would be apparent...but I am determined enough to go ahead and place my head on the block to "learn" from some very bright people that are on these boards....I appreciate your latest posting and I just pm'd you a private question hoping you might be wiling to help another trader (albeit new at "this" particular form of trading larger account size)....learn something new.

I am simply trying to learn how to calculate proper risk -management for a pre-determined account size and how I best should go about that? Any books, other threads on ET or ideas are all welcome...

J-

 

[Pabst]

Check your box.

 

[PetaDollar]

Quote from jester:

..thanks I am trying to learn money management and proper "bet sizing"....II am simply trying to learn how to calculate proper risk -management for a pre-determined account size and how I best should go about that? Any books, other threads on ET or ideas are all welcome...

J-

The way to do it is by backtesting your trading method and finding out how much the historical drawdowns were. They can be quite a lot. I trade NQ with the 285 period SMA on the 5-minute chart. My drawdowns are sometimes nearly 100 points.. thats $2,000, just trading a single contract.

Check out Murphy's book, "Tech. Analysis of the Futures Markets", p.253. Drawdowns are substantial even with a successful method. A scary thought is, if you don't have a thouroughly backtested method, you have no idea if those losses are drawdowns, or your hard earned bucks parting forever!

 

[Mr Subliminal]

Quote from peterfigliozzi:

... A scary thought is, if you don't have a thouroughly backtested method, you have no idea if those losses are drawdowns, or your hard earned bucks parting forever!

Or both.