I am getting ready to use a system that I have been developing to trade the emini (S&P) for a 1 hour hold period. I am trying to get a better grasp on my expected costs, and I am very surprised to learn that it could be as high as 20% of my expected average profit (+ 20% of my expected average loss). With costs this high, how is it even possible to make a profit trading the emini over a 60 minute period? Here is my logic: Assume the average 1 hour range is around 3 points. My risk control of 5% of capital per trade on $100,000 account means that I can trade 33 mini S&P contracts. If I expect to give up .25 points on the entry and .25 points on the exit as slippage, that would total ($12.50 * 2) * 33 contracts = $825 slippage. I need to add $4.50 per contract for fees and commissions ($4.50 x 33) = $148.50 for a total average cost per trade of $825 + $148.50 = $973.50 If I can expect to earn an average of 3 points per winning trade (3*$50)*33 contracts = $4950, my $973 cost works out to a whopping 20% of my profit potential! That seems like a pretty high cost to me - am I calculating this correctly?? (and this doesn't even include that cost against my loosing trades). To compare, I figure it would be cheaper to bet on red or black on a roulette wheel in Vegas. There is a 1 / 27 chance that my capital goes to the house (landing on green). So, my costs to play roulette are slightly less than 4%.