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QG mini Natural Gas ( Position size ) calculation


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QG mini Natural Gas ( Position size ) calculation

  #1 (permalink)
vpd1952
memphis
 
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QG mini Natural Gas ( Position size ) calculation question please - can someone confirm or critique my calculation please

Account size = $15,000 x .02% risk = $300 ........ I can Risk 24 ticks

Entry - 3.185 & Exit - 3.235 = 0.05 Ticks ( 5 ticks ) x $12.50

$300 divided by ( 5 ticks x $12.50 ) / $62.50 = 4.8 contracts ( rounded down to 4 contracts )

So I could trade 4 contracts ?


Am I calculating everything correct?
Really appreciate everyone's time and help - Thanks so much

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  #2 (permalink)
 
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 SMCJB 
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No.


vpd1952 View Post
Entry - 3.185 & Exit - 3.235 = 0.05 Ticks ( 5 ticks ) x $12.50

3.185 to 3.235 is 10 ticks not 5 ticks.
(3.235-3.185)*2500 = $125 not $62.50
so 2.4 not 4.8 contracts.

Note the tick size of QG makes it an expensive contract to trade if you are paying the bid ask spread. Contract is quarter the size of the full size but has a larger tick! Similarly for QM the Crude eMini which is half the size but also has a $12.50 tick (.025*500) which is again larger than the full size.

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  #3 (permalink)
vpd1952
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SMCJB - you're the best!! Thank you so much

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  #4 (permalink)
vpd1952
memphis
 
Posts: 77 since Mar 2020
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SMCJB - can you please confirm the QG mini Natural Gas ( gain )

Is a move from 3.185 to 3.235 = .05 ticks or is it 10 ticks?
I was thinking it was 5 ticks, unless I'm doing the math and or calculation incorrectly?

3.235
- 3.185
_______
0.05 ( where the two 5s on the end are "irrelevant" and we don't add them or subtract them )?

I really appreciate your help - just want to make sure I correctly understand the way to calculate my entry and profit target for this market, before I start trading it live

Thank you again

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  #5 (permalink)
 
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 SMCJB 
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NG is 10000 MMBtu
QM is 2500 MMBtu

2500 * (3.235-3.185) = $125

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  #6 (permalink)
vpd1952
memphis
 
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Makes sense now - thank you for clearing it up for me

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  #7 (permalink)
67belvedere
Indianapolis, IN
 
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Can anyone let me know how often the IEA releases nat gas storage info?

Many thanks

-67Bel

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  #8 (permalink)
 
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 SMCJB 
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Weekly on Thursdays 930am Central

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  #9 (permalink)
67belvedere
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SMCJB,

How long have you been trading? Is trading technologies platform for retail traders or only enterprise level? Does the software give you an edge?

I use think or swim with moving averages, MACD and volume avg to help me decide what to do.

I've had most success with nat gas therefore continue trading it. Looks overbought at the moment.

Thanks for any insights you care to share
- Bel

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  #10 (permalink)
 
SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,048 since Dec 2013
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Thanks Received: 10,205



67belvedere View Post
How long have you been trading?

Working for trading companies or trading full time for about 30 years and still solvent!

67belvedere View Post
Is trading technologies platform for retail traders or only enterprise level?

It's really volume dependent. TT's not going to be economical unless your trading enough size. If you are trading the size to justify the cost, it may be worth it.

67belvedere View Post
Does the software give you an edge?

Me personally? Yes. But my model is different than most. If saving 1 tick in execution in spread trades makes an impact in your business then it could be an edge. If your trading traditional indicators then the charting is probably sub standard versus other more 'continuous contract trading platforms'

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