im currently trading 6 different futures with daily exits and entries. I have a money management plan, but im not sure if its the best. I would be glad if someone has some ideas about how to improve your money management in that kind of situation. Im also starting a new small account to test if the strategy works with options too. What are the money management differencies between option and future trading?
I trade these futures: EU, TY, ES, NQ,CL, HG. My money management plan has so far been this: I trade 1 contract per symbol for each 50000 dollar on my account. The system is based on daily data and positions are changed at daily close if new signal shows up. It has worked well so far, with couple of 5% drawdowns. I have stop losses for each futures between 2-5%. But I would be interested more dynamic version which depends on volatility and correlation. Also would like your opinion is this management too tight or too loose.
With options if your strategy is to buy weekly at the money puts and calls how much would you risk on one bet (%) of your capital.