Capital capacity of short term trading systems

Discussion in 'Trading' started by wyang, May 8, 2005.

  1. wyang

    wyang Guest

    Just want to get an idea what's the typical capital size limit for short term trading. I know ultimately the liquidity is a problem. Lets say the time frame is about 1 day, what's the limit? $1M, $5M, $10M...? When do you start to feel the ecological limit?
  2. Good question, but it depends totally on what you're trading. FX, bonds, notes, eurodollars and S&P's can absorb big size. Many individual stocks cannot, at least not without serious slippage. I would think one daytrader would have trouble with more than $5 mill or so in stocks, although I know there have been guys who did many times that. I suppose it depends a lot on how automated you are, and on your style.