Need help trading "size" in the NQ's

Discussion in 'Index Futures' started by jester, Mar 22, 2003.

  1. jester

    jester Guest

    ...if someone was going to trade a very large account and focus strictly on the NQ's, what is an appropriate lot size that can be moved quickly without a lot of slippage or am I being very naive here?

    Let me give a suggested account size;

    A) Managing a trading account of $500,000.00
    b) What lot size is appropriate to "maximize" returns for that size account? Should you get in on a large lot size and then scale out of positions, how about when a trade goes against you, what is the largest lot size you can move quickly?

    Any help or ideas appreciated.... Am I even asking the "right" questions? I am seriously looking for some answers.

  2. If you consider $500k a large account you should have no problem whatsoever trading the NQ any way you like.
  3. jester

    jester Guest

    ok then I can assume by your answer if I wanted to trade 300 or 500 lot positions at a single "signal" several times a day ....that size shouldn't be any problem to get filled, exit's etc...?

    thanks in advance for your help...

  4. Pabst


    Only a moron would trade 300-500 NQ with a half million. Now I know why your name is Jester.
  5. RAY


    I think you would do yourself well to come in just below that 500NQ per trade figure. Maybe start at 5.
  6. Pabst


    Jester BTW, I know you are not a moron, actually you seem pretty bright, so why the need to overtrade? Please explain!
  7. jester

    jester Guest

    ..thanks I am trying to learn money management and proper "bet sizing"....I was afraid when I posted this question,.. my naivette' in this matter would be apparent...but I am determined enough to go ahead and place my head on the block to "learn" from some very bright people that are on these boards....I appreciate your latest posting and I just pm'd you a private question hoping you might be wiling to help another trader (albeit new at "this" particular form of trading larger account size)....learn something new.

    I am simply trying to learn how to calculate proper risk -management for a pre-determined account size and how I best should go about that? Any books, other threads on ET or ideas are all welcome...

  8. Pabst


    Check your box.
  9. The way to do it is by backtesting your trading method and finding out how much the historical drawdowns were. They can be quite a lot. I trade NQ with the 285 period SMA on the 5-minute chart. My drawdowns are sometimes nearly 100 points.. thats $2,000, just trading a single contract.

    Check out Murphy's book, "Tech. Analysis of the Futures Markets", p.253. Drawdowns are substantial even with a successful method. A scary thought is, if you don't have a thouroughly backtested method, you have no idea if those losses are drawdowns, or your hard earned bucks parting forever!
  10. Or both.
    #10     Mar 23, 2003