Question on original turtles (unit calculation)

Discussion in 'Trading' started by emeka, Jun 19, 2008.

  1. emeka

    emeka

    Hi,

    How do they really calculate unit size?

    Quote from the WAY of the TURTLE:
    ===
    The unit size for the 6th of December, 2002 (using the N value of 0.0141 from the 4th of December), is as follows:

    Heating Oil N = 0.0141

    Account Size = $1,000,000

    Dollars per Point = 42,000 (42,000 gallon contracts with price quoted in dollars)

    Unit Size = (0.01 x $1,000,000) / (0.0141 x $42,000) = 16.88
    ====

    Why Dollars per point is $42000?

    Minimum price fluctuation if heating oil future is:

    Minimum Price Fluctuation
    Heating Oil Futures and Options: $0.0001 (0.01¢) per gallon ($4.20 per contract)!!! Not $1 per gallon.

    http://www.wtrg.com/daily/heatingoilprice.html


    Thoughts?

    Tnanks in advance,
    Alex