# of contracts in regards to capital/profit target?

Quote from Anekdoten:

Depends on risk but as a general rule:

5k capital per 1 NQ

15k capital per 1 ES

Anek
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Do you use this kind of ratio mostly for scalping I take it? What is your avg profit target / stop loss (in points) if you don't mind me asking?

I must be overly conservative. I trade up to about 3 ES per 100k ~ roughly 1 ES per 33k.
 
Quote from polpolik:

Do you use this kind of ratio mostly for scalping I take it? What is your avg profit target / stop loss (in points) if you don't mind me asking?

I must be overly conservative. I trade up to about 3 ES per 100k ~ roughly 1 ES per 33k.
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That is the ratio I recommend as long as risk per trade does not exceed 1.5% of capital, 2% as absolute max. I shoot for 3X-20X+ reward.

I think you are overly conservative, nothing wrong with that, just hope you getting some interest through t-bills on the "dead" balance.

Anek
 
Quote from Anekdoten:

That is the ratio I recommend as long as risk per trade does not exceed 1.5% of capital, 2% as absolute max. I shoot for 3X-20X+ reward.

I think you are overly conservative, nothing wrong with that, just hope you getting some interest through t-bills on the "dead" balance.

Anek
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Thanks anek. I still trade and manage my trades based on "dollar value" not by points and I think that's what hinders me. I make as much with a 20k account as with a 100k account. I'll probably try to start sizing up next year.
 
Look at your DOM...

At this instant in time you can buy 1 or sell 9 at market. slipage beyond that.


Max Slip Spread Q Ask Q Bid
0 0.50 1 9
1 0.75 9 21
2 1.00 17 22
X 2.43 27 24
 
Quote from pclark:

OK,

Thanks for the help on my previous post about stops. I have pretty much decided to use mental stops while trading the ES due to volatility but will put a stop in way down the line in case of disaster. Now I have another question.

My account is 11K using Ninja Trader and Mirrus/Zen Fire. The way I paper traded the ES is 4 contracts at a time and my profit target is 2.25 points and then I am out. The reasoning is the longer I am in the market the more risk I take on. I average about 6-8 trades a day and I hve been around 76% for accuracy.

So, using the above information. When I start trading w/my funded account. I thought I would do a trade or two w/one contract to see how the response is but then I wanted to start using 4 contracts. Using 4 contracts I think I can get the profit I am wanting and hoping to keep the same success rate. I know things tend to change when you start trading for real but assuming I keep the same mindset am I going to die a slow death? The way I have it figured w/commisions and slippage I should be able to do about $800 minimum. Also before anyone starts killing me about lofty idea's I know there will be day's where I don't do nearly that much.

Are there any suggestions? Thanks....

Paul
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4 contracts on a 11k account???????

4 contracts are $240k (using round numbers, S&P at 1200).
So you are managing $240k with only $11k?
This is a 22:1 leverage.
An adverse move of 4.5% would completely blowoff your account.

With one contract you would have 5.5:1 leverage, something reallistic.
 
Played around with some promising and aggresive algorithms to hedge and leverage small accounts... $10K

Three - five step martigales averaging down in varying increments. Mathmatical price inflection based.

The trading system manage risk and made profits reliably.
Plays both sides starting with $5k ... but always had runaway blowup risks.

Reliably turns $10K to $20K in a session and spawns 2 more trading bots... but inevitably turns $50K to negative $50k.

Deep drawdowns happen so quick that even with reserves you blow out your account. Especially when your squaring and cubing your positions x 4.
 
Quote from kingjelly:

Anek,

At what number of contracts did slippage start becoming a problem on NQ?


Thanks,

Preston
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I agree with Anek on his 1.5 - 2% risk per trade, its easy to have 4 - 5 losers in a row with this market with a 2 point stop loss. I trade the ES and am also curious as to anyone´s experience with scalping size on the ES. I have experience trading 10 - 15 with a large account, no slippage to speak off. This account, in theory, could trade 40 - 50 contracts using the 1.5 - 2% risk model mentioned.
 
Quote from crgarcia:

4 contracts on a 11k account???????

4 contracts are $240k (using round numbers, S&P at 1200).
So you are managing $240k with only $11k?
This is a 22:1 leverage.
An adverse move of 4.5% would completely blowoff your account.

With one contract you would have 5.5:1 leverage, something reallistic.
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I agree but I am only scalping 1.5 to 2.0 pts at the most. I am not trending etc.... I have yet to see it move that much during the day in a gap up or down (not that it couldn't) I have seen it first thing in the opening but, I am not in the market during the opening. What are the odds of a 4.5% move during the day straight up or down? I guess anything could happen right now in our crazy economic market.

Paul
 
the math goes like this:

(X-Z)/50 >= max. DD in ES points

X: Your capital
Z: broker's minimum margin

So if you have 5K in the account with 1 K min. margin, you can have an 80 points DD before you have to stop trading...
 
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