Futures compounding calculation? - futures io
futures io



Futures compounding calculation?


Discussion in Traders Hideout

Updated
    1. trending_up 440 views
    2. thumb_up 0 thanks given
    3. group 2 followers
    1. forum 4 posts
    2. attach_file 1 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 members
  • 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 and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Search this Thread
 

Futures compounding calculation?

(login for full post details)
  #1 (permalink)
Courage
Burnaby Canada
 
 
Posts: 26 since Feb 2019
Thanks: 2 given, 19 received

So many compounding calculators use % but in futures its the # of contracts that normally bring growth


Curious if anyone know of a compounding calculator that makes sense for futures?

Like if you compound your money into more contracts instead of taking profits how would that curve look like

Reply With Quote

Journal Challenge April 2021 results (now extended!):
Competing for $1800 in prizes from Jigsaw
looks_oneMaking a Living with the Microsby sstheo
(391 thanks from 41 posts)
looks_twoSalao's Journalby Salao
(88 thanks from 15 posts)
looks_3Learning to Profit - A journey in algorithms and optionsby Syntax
(59 thanks from 19 posts)
looks_4Deetee’s DAX Trading Journal (time based)by Deetee
(51 thanks from 25 posts)
looks_5Maybe a little bit different journalby Malykubo
(37 thanks from 23 posts)
 
Best Threads (Most Thanked)
in the last 7 days on futures io
The Crude Dude Oil Trading System
107 thanks
Seasonal Trades
31 thanks
futures io site changelog and issues/problem reporting
26 thanks
Spoo-nalysis ES e-mini futures S&P 500
23 thanks
Cryptocurrencies 101 -- what Ive learned so far
22 thanks
 
(login for full post details)
  #3 (permalink)
 SidewalkAerobics 
Los Angels
 
Experience: Intermediate
Platform: MultiChart
Trading: Emini ES
 
Posts: 115 since Aug 2018
Thanks: 173 given, 71 received



Courage View Post
in futures its the # of contracts that normally bring growth

Yes, compounding brings growth. Here is an example of 2 curves that start with only enough equity for one contract. Over time you can see the benefit of compounding.


Reply With Quote
 
(login for full post details)
  #4 (permalink)
Courage
Burnaby Canada
 
 
Posts: 26 since Feb 2019
Thanks: 2 given, 19 received


SidewalkAerobics View Post
Yes, compounding brings growth. Here is an example of 2 curves that start with only enough equity for one contract. Over time you can see the benefit of compounding.


interesting, how is the calculation done to see the curve if one were to compound multiple contracts vs just stick to 1 contract?

Reply With Quote
 
(login for full post details)
  #5 (permalink)
 SidewalkAerobics 
Los Angels
 
Experience: Intermediate
Platform: MultiChart
Trading: Emini ES
 
Posts: 115 since Aug 2018
Thanks: 173 given, 71 received


Courage View Post
interesting, how is the calculation done to see the curve if one were to compound multiple contracts vs just stick to 1 contract?

Above is a curve from back testing in TradeStation. TradeStation outputs a report. I copy the tradelist into Excel. Then use a fomula in excel to compound the number of contracts traded.

The Excel formula considers:
1) The amount of capital for margin
2) The most recent loss or gain
3) More historic losses or gains

If the strategy is in a lossy/drawdown period, the Excel formula decrease the number of contracts traded.

If the strategy is in an equity period, the Excel formula increase the number of contracts traded.

The Excel formula can/should be adjusted to the trader's risk tolerance. I would be happy to share my risk tolerance if you would like to see it.

Reply With Quote


futures io Trading Community Traders Hideout > Futures compounding calculation?


Last Updated on March 6, 2019


Upcoming Webinars and Events
 

NinjaTrader Indicator Challenge!

Ongoing
 

Journal Challenge w/$1,800 in prizes!

April

An Introduction to CME Group Micro Bitcoin Futures w/David Lerman

Elite only
     



Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada), info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts