ES & YM Position Sizing (for Position Traders)

Discussion in 'Index Futures' started by andysmith, Aug 25, 2005.

  1. I'm trying to get a better understanding of risk management and position sizing when trading futures contracts -- for YM and ES -- for position traders, not daytraders.

    In equities my position sizing rules are:

    1) I risk/bet 1% of my account per trade
    2) I calculate my initial stop loss based on volatility using ATR
    3) position_size = (account_size * 1%)/(initial_stop_loss)
    4) A single position cannot exceed 10% of the total account size

    These rules work remarkably well for me.

    What is the equivalent of this with futures contracts?