|
memphis
Posts: 77 since Mar 2020
Thanks Given: 211
Thanks Received: 23
|
Good Evening,
can someone please help me in coming up with the correct formula/numbers for this Position Size method that I'm using for the following 3 symbols ( QG mini Natural Gas, ZT the 2 year and ZF the 5 year )
I'm assuming a starting account of $5,000 and am risking 3% per trade
For QG:
$5,000 account size x .03% risk per trade = $150 Max risk per trade
QG 1 tick value = $12.50
Entry on the trade at 1.5770
Stop on the trade at 1.5759
( is this 11 Ticks or 11 points )? I know they're are 200 ticks per 1 point for QG
Then the calculation would be ....... $150 divided by ( 11 Ticks x $12.50 ) = 1.09 contract(s)
Rounding down, I could trade 1 contract of QG
for ZT:
$5,000 account size x .03% risk per trade = $150 Max risk per trade
ZT 1 tick value = $15.625
Entry on the trade at 125.02
Stop on the trade at 124.83
( is this 19 Ticks )? I know they're are 128 ticks per 1 point for ZT
Then the calculation would be ....... $150 divided by ( 19 Ticks x $15.625 ) = .50 contract(s) aka 1'2 of a contract
Therefore, I could NOT trade even 1 contract
for ZF:
$5,000 account size x .03% risk per trade = $150 Max risk per trade
ZF 1 tick value = $7.8125
Entry on the trade at 110.20
Stop on the trade at 109.90
( is this 30 Ticks )? I know they're are 128 ticks per 1 point for ZF
Then the calculation would be ....... $150 divided by ( 30 Ticks x $7.8125 ) = .64 contract(s)
Therefore, I could NOT trade even 1 contract - aka this is 2/3 of a contract
I think I'm calculating these correctly, but am not 100% sure, and wanted to get confirmation 
Really appreciate the help - Thank you
|
