With 1 contract and 5K on ES with 8ticks SL You can cumulate 50 drawdowns before halvin' Don't tell me there is no room for error ... IMO 5K to daytrade ES is enough. I'd say 2,5K is the minimum. But everyone has its own risk tolerance. And its own performance & risk management. But I wouldn't fund daytraders that blew up with 2,5K on ES.
There's a bunch of firms that don't require deposits all over chicago. Granted you need competence and the style is probably unlike what you're used to
Competence -> Track Records He doesn't have(?) & want to provide that. Chicago ? ... Who told you he's willin' to move. And "the style unlike what [he's] used to" ... So why did you intervene ? noise. noise. noise.
I second this. I have traded a $5k account to over $10K in a week or less on the Russell 2K a few times as a test. You need a very good system with a 75% + win rate and real discipline. That scenario is beyond most most novice to intermediate skill traders. If your taking more than 2-3 losers in a row, you have other problems that need to be addressed before risking real money on trades.
That scenario is a good test as whether or not you're ready to put more money at work. Novice traders lose money and intermediate ones break even. It's better for a novice to smoke 5K than 25K or more, which happens given the lack of discipline. You said it, 5K is enough for the one that can make a living from day trading. If he can't. He'll always be under capitalized.
It's far from ideal and even for a good trader it is a bit of a white knuckle ride. Not for the faint of heart.
I am day trading..Ameritrade said 15K minimum deposit to trade ES. indeed it's around 5k margin/contract. Nothing is easy... The goal is to use sound risk/reward principles in conjunction with a long history of pattern recognition & volume profile analysis. +15 year trading history..although broken up at times. Nothing is easy..try working a corporate gig and watching idiots move up the ladder because they excel at politics and ass kissing.. Or commuting 2 hours to get to a job where you barely break even after all expenses are taken into account. Nothing is easy.. I've seen how quickly $$ can accumulate from my years trading on the floor.. Granted, that's a big difference then fighting against algo's and HFT's. Slow steady progress until able to utilize more resources from prop firm and ideally move my time frame away from instantaneous trades....................... I appreciate you guys giving your insights as that's what forums are all about.