Risk per trade vs. Capital per contract

[Overnight]

So, in practical terms - what max size do you think is appropriate for $100,000 capital? It depends on the product traded, but let's say: ES and ZN. I would say 5 ES and 15 ZN.

Just 1 ct. It's all you need.

 

[lukas]

Just 1 ct. It's all you need.

1 lot? What do you mean by saying it's all I need?

 

[birzos]

1 lot? What do you mean by saying it's all I need?

You really did not read and process any of the replies.

1. There's what everyone wants to hear
2. There's what everyone wants to believe
3. There's everything else
4. Then there's the truth

So you have an idea in you head that follows 1 & 2, and you're looking for validation, good luck with that, one day you'll find out 4 doesn't match, it's called double-binding yourself.

 

[lukas]

I have never been good at solving riddles. Just asked how others approach this area of trading. I have my own methods and am not seeking approval for them here

 

[Overnight]

1 lot? What do you mean by saying it's all I need?

Here, let me put it into context for you, since you forgot your original question perhaps?

1. we assume $20,000 per contract and always trade the max size calculated this way (e.g. for $100,000 we always trade using 5 lots)
2. we assume 0.2% risk per trade and adjust the clip size depending on the stop level (e.g. for $100,000 we can risk $200 per trade; tick value $10 - if the stop level is 4 ticks we trade 5 lots; 2 ticks - we trade 10 lots).

1 contract per position. It's all you need to make 10, 20, 30% year return?

It's not hard, but it is hard. Sorry about the riddleish-ness nature of the answer, but if you can get your mind to working on figuring out riddles, maybe you'll do good in trading.

If you have $100,000, why do you "always trade 5 lots"? Why? Why why why? Why do you "have" to? Hmmm?