Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Broker: Broker: Trade Future 4 Less. Data Feed/Order routing: CQG
Trading: DAX; ES; Bund Futures
Posts: 77 since Oct 2018
Thanks Given: 49
Thanks Received: 57
If imposible to discucus SL and SP size without knowing what time frame you are trading on. I most use 30 sec. time frame and for most contracts ( Russle, Dow, Gold; Crude oil ) I use 15 tick SL ( 3,75 points on ES mini)
Broker: Broker: Trade Future 4 Less. Data Feed/Order routing: CQG
Trading: DAX; ES; Bund Futures
Posts: 77 since Oct 2018
Thanks Given: 49
Thanks Received: 57
Yes, Correct but the risk tolerance should maximum be 1% of the total trading capital, preferable less then 1%.
This means - the the case of 3,75 points (15 tick) = 12,5*15= 187,5 USD + 2* 1,69 ( commission) = approx. 19.100 USD is needed in capital per ES Mini or 1.910 USD per ES Micro. - If the SL is more or less the math changes accordingly.
I think you are totally right. Looking back, it is almost embarrassing to think I even started this thread with the idea I might be ready for ES. I have much to learn! Holding tight to my capital and live testing in combines showed me how much psychology plays into it (making me question my strategy and deviate from my rules). Thanks for your input!
I wish I had a magic formula to share but I dont :-)
It depends on the trading method, expected profit target and more.
I like to use either stops based SR levels, perhaps using the PSAR, perhaps using Bollinger bands...
If your method looks for very small profit then its a diff. story, if your method looks for larger profits/ swings intraday you can also look at the daily ATR and use a % of that daily avg true range as that will adjust to volatility. You can read more here.
PM with any questions about Cannon Trading (800) 454-9572 (310) 859-9572. Trading commodity futures, forex and options involves substantial risk of loss. The recommendations contained in this post are of opinion only and do not guarantee any profits. These are risky markets and only risk capital should be used. Past performance is not necessarily indicative of future results.