NexusFi: Find Your Edge


Home Menu

 





How much do you risk per trade/day


Discussion in Psychology and Money Management

Updated
    1. trending_up 1,000 views
    2. thumb_up 2 thanks given
    3. group 0 followers
    1. forum 1 posts
    2. attach_file 0 attachments




Closed Thread
 
Search this Thread

How much do you risk per trade/day

  #1 (permalink)
 
reno57540's Avatar
 reno57540 
Potomac, MD
 
Experience: Intermediate
Platform: ToS, NT
Broker: TD Ameritrade, IB
Trading: QM/CL
Posts: 161 since Oct 2012
Thanks Given: 120
Thanks Received: 213

I have been trading a method that is giving reasonable returns and I am currently considering increasing my position size.

I have about $65k in risk capital. Even if I lost all of it, it would not affect my life in a dramatic way financially.

However, I have been abiding to the 2% loss per day rule, and since I am trading CL with a maximum loss of $1k per contract, it means I am never trading more than 1 CL contract at a time.

The problem is that it will take me years to be able to increase my position substantially to really make a relevant living at this job.

For that reason I am seriously considering increasing my risk per day to 4%, and trade 1 CL contract per $25k equity instead of $50k.


Things to consider:

- My maximum stop is rarely hit, as I always tighten it very quickly via a trail system. Most of my losses are usually around $500-$750 per contract, so even with a 4% max risk, my losses will rarely be more than 2-3%.

- My target is the same as my max loss, $1K per contract, but for the same reason as I rarely take a full loss, I also seldom take a full win. In general my risk/reward is about 1/1. This also means that I rarely have a very long stretch of losers.

- I take no more than 1 trade per day (some days I don't even get an entry), so not only would this be my max loss per trade, but it would also be the max loss per day.

I would be interested to hear people's thoughts, thanks for reading.

Visit my NexusFi Trade Journal Started this thread
Thanked by:

Can you help answer these questions
from other members on NexusFi?
Ninja Mobile Trader VPS (ninjamobiletrader.com)
Trading Reviews and Vendors
Better Renko Gaps
The Elite Circle
NT7 Indicator Script Troubleshooting - Camarilla Pivots
NinjaTrader
Deepmoney LLM
Elite Quantitative GenAI/LLM
ZombieSqueeze
Platforms and Indicators
 
  #2 (permalink)
 
bobwest's Avatar
 bobwest 
Western Florida
Site Moderator
 
Experience: Advanced
Platform: Sierra Chart
Trading: ES, YM
Frequency: Several times daily
Duration: Minutes
Posts: 8,162 since Jan 2013
Thanks Given: 57,344
Thanks Received: 26,267

This is a worthwhile topic, but is a duplicate post.

Thread is closed to prevent a split topic.

Refer to the other thread containing the same post, which will remain open:

Bob.

When one door closes, another opens.
-- Cervantes, Don Quixote
Thanked by:

Closed Thread



Last Updated on August 9, 2019


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
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.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts