I am currently trading the MES and would like to know how many contracts I can realistically trade there before moving to the ES. If I'm profitable on the MES, my feeling is that with all other things being equal I should trade significant size before moving to the ES. For example, I would think that I should be trading a minimum of 30 MES before going to 3 ES. However, that style of trading could be still significantly different unless I broke up the 30 into 3 units of 10, to match the scales.
One way I would answer this and I'm curious if you would agree, is I should work my way up to 90 MES contracts, trading them in 3 blocks of 30. In doing this starting from 3 MES, you could increase by 1 MES and the additional to your middle target until you got another block of 3 which would then spread evenly.
This would just be an overall model of how to increase MES size and scale out. It would obviously need to be adjusted for factors like scaling in, etc...
I'm concerned that if I trade 30 MES, and try to switch to 3 ES, that my next move up will be 33% larger (from 3 to 4 in the ES). Where as if I work up to 90 MES and 9 ES, my next move up is more reasonable at 11% (from 9 to 10 in the ES).
Do you see a limit on the number of contracts you can trade on the MES with this thought process? Is that market arbitraged enough to absorb even larger orders like 300-500? I totally agree with your suggestion that "sizing" up should be done in a way to be as imperceptible as possible and if you're making profitable trades on the MES it seems it would be more important not to mess with the mental game and pay more in fees before transitioning to the ES.
Thanks in advance.
The following user says Thank You to mjg2trader for this post:
A member emailed and asked if I can post the webinar I did last week with Bookmap could be posted to this thread for easy retrieval and for other FIO members to watch. This webinar didn't go into the weeds of order flow or how to use the CT Bookmap software. It is a more holistic look at trading from the big picture down to the order flow.
In my opinion, members here will likely pick up a thing or two to use. That's always my goal...to make a positive impact on your trading.
It is a boring open this morning in the index futures, this might be a good day to watch this. Let me know your thoughts.
Risk Disclaimer: Trading Futures is not suitable for all investors. Past Performance is not indicative of future results.
If you have any questions about the products or services provided, please send me a Private Message or use the futures.io "Ask Me Anything" thread
The following 6 users say Thank You to FuturesTrader71 for this post:
FuturesTrader71 ,
Thank you so much for posting and sharing this Webinar - super helpful
Definitely helped me with adding on Lots, and scaling out of 1 Lot to cover a portion of my cost of the trade
scaling out of the 2nd Lot at the price that covers the Entire Risk of the trade ( initial risk of all 3 Contracts at the initial entry of the trade )
And then having the 3rd Lot be the "Runner" , within the structure of the Market
You also mentioned adding Lots, based on your Account size and the Margin on a per contract basis
Can you please give an example of how this method would work ( adding X number of Contracts ) based on the Intra-Day Margin per contract - an example of this based on a $20,000 account
Thanks so much again for doing this webinar - very insightful
NOTICE: This is provided as an example with some fair assumptions. Derivatives trading is not suitable for all investors. This is provided as an educational example only and is not a recommendation to trade or to indicate the size you should be trading. If you want more details, please reach out to the team at https://edgeclear.com
Risk Disclaimer: Trading Futures is not suitable for all investors. Past Performance is not indicative of future results.
If you have any questions about the products or services provided, please send me a Private Message or use the futures.io "Ask Me Anything" thread
