Account size

Discussion in 'Commodity Futures' started by joey juneau, Jul 19, 2016.

  1. What is the ideal account size for trading futures?
     
  2. how small of an account ideal to trade with?
     
  3. K-Pia

    K-Pia

    Depends on the tick value of the instrument.
    And how much you're willing to risk per trade.
    As well as how much ticks does your SL contains.

    Exemple :
    Tick Value : 10$
    #SL Ticks : 10 ticks
    Max Risk : 5% of account

    Account = ((Tick Value x #SL Ticks) x 100) / Max Risk
    Account = ((10 x 10) x 100) / 5
    Account = 2000$ Minimum*
    *Per Contract.

    Max Risk is the only unknown,
    And this isn't an arbitrary number.
    Look for the Kelly Criterion. Max Return.
    But of course ... Optimize for Min Risk of Ruin.
     
    Last edited: Jul 19, 2016
  4. ok wow that's interesting!
     
  5. qxr1011

    qxr1011

    depending of the goals: for masturbation or for living?
     
  6. K-Pia

    K-Pia

    For masturbation > For living XD
    Oh ... maybe your wife is a porn star.
    See ? Mr Johnson has way higher standards.
    Kiddin ' ... By the way ... I am ultra serious while ...
     
  7. JackRab

    JackRab

    between 10k and 5mln
     
    nickf579 and DirectMarketAccess like this.
  8. Depending if you are looking to day trade or hold positions overnight. If you hold positions overnight you will need full initial margin per contract.

    Day trading, I say at least $2500.00, swing trading (holding positions overnight) I say at least $5-$10K. Just my opinion
     
    DirectMarketAccess likes this.
  9. ok awesome! thank you
     
  10. #10     Jul 22, 2016