Position size??

Discussion in 'Index Futures' started by BoomBoom68, Aug 2, 2008.

  1. Out of curiosity - what kind of size do you take on? I know every situation is different. What size do you take on and in which trading vehicle. For example, in the mini S&P I am cofortable with 10 and under andything over 10 and I am jittery - hahaha - crude 1-2 contracts. Would like to hear from others. Bonds? Euro? What has been your biggest size position? Let's hear some war stories.
  2. c'mon guys - no one wants to talk about what size positions we trade?
  3. It's been talked about several times in the Trade Management section of the forum in the past.


    With that said, I've mentioned several times here at ET in the past that 4 things should determine your position size:

    * Money Management - what ever is your money management scheme...don't violate it.

    * Volatility Analysis - you must do statistical work to determine if your trade signals perform better or worst when volatility changes.

    Stats should show backtest performance and real money trading performance.

    * Personal Comfort Level - just because you have the money to trade more size doesn't imply you should do it because some traders increase their stress level for what ever reasons when increasing size that often results in poor trade decisions.

    * Understand Liquidity - know your trading instrument...how easy can it absorb your position size without increased slippage.

    Other conversations like war stories has always lead into off-topic discussions that quickly kills the topic of Position Size (main reason why the topic has always been short lived).