position sizing for financial futures

Discussion in 'Trading' started by razf1, Jun 2, 2012.

  1. razf1


    I wanted to get some feedback how most of you are sizing your positions for treasury futures.

    Here is an example of my sizing style:

    Account size = 100k
    Largest loss = -3%
    percent of account allocated to system = 5%

    I would trade 2 ES for this system. Now if I want to trade TY for same system I usually just do 2x ES position size or 4 cts.

    Just want to get some thoughts on how other folks are managing position sizing across different asset classes.

    Looking forward to your responses.
  2. Position sizing depends on many many factors, peoples personal tolerances, winning streaks, losing streaks, blah blah blah.

    For me..

    I generally will load up on a regular basis up to 50% of available cash. So with 100k I might have 50 lots on with ES. Or 15-30 with CL.

    Trading is about making cash and going on vacation$$ otherwise no one would be here trying to make some pocket change!


  3. Size will depend mainly on the projected stop-loss and risk percent. If the stop-losss is 3% or 3K and you want to limit risk to 10$ then the size is:

    # od contracts = (100K x .1)/3K = 3.33 = 3 contracts

    This article has the math and an example for bond futures:


    However, if you are trading multiple markets you will have to also look at the total margin, leverage, etc.