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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
I have shown a couple of DOMs for reference.
I did an instant buy and sell on each product to confirm the tick value, losing one tick, which showed as a $7.81 loss for each.
Also tricky with your use of decimals with your entry and exit prices.
edit:
I added the Tradovate DOM also. On the main picture you can see that the Jigsaw DOM has a cumulative rounding error for the prices increasing from '070 by '001 up to '077, then by '003 up to the the next 1/32nd value of '080.
You do not win as a trader, you just get to play again the next day. If that game doesn’t appeal to you then you should not trade. Gary Norden
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,386
Thanks Received: 10,206
NG, Natural Gas, is a 10,000 MMBtu contract with a tick size of 0.001 which is $10/tick.
QM, Natural Gas eMini, is a 2,500 MMBtu contract with a tick size of 0.005 which is $12.5/tick. (Crazy huh bigger than full size)
$150/$12.5 = 12 ticks (11 huh???) so 12 ticks = 12 * 0.005 = 0.06 or 6c/MMBtu
You can't enter at 1.577 QG doesn't trade like that. You can enter at 1.580 or 1.575!
You can't stop on 1.5759 QG doesn't trade like that. You can stop on 1.580 or 1.575! (Even NG doesn't trade 1.5759!!!)
If you buy 1.580 with a stop of 1.575 and assume zero slippage and zero commissions you can trade 12 lots and only be risking $150!
Sorry to sound negative but you shouldn't be trading this product.
Hi SMCJB,
thank you again for all of your help with my Post / question regarding Natural Gas ( and mini Natural Gas ) - that was super helpful and cleared up a lot for me
If you have a Few minutes,
can you please look over these two scenarios/calculations for both ZT and ZF and let me know if my understanding of these is correct please - I would be super grateful for any help and knowledge you can share
for ZT:
$5,000 account size x .03% risk per trade = $150 Max risk per trade
Matthew, off topic but did you customize your jigsaw dom layout Or was it a setting that came with jigsaw? It’s soooo much cleaner to look at than the bright factory settings.
Thanks, it's one I tweaked. I have attached a copy of the Jigsaw DepthSales template, or I think I have. I have never shared a template so try putting it in your folder and let me know if it works.
You do not win as a trader, you just get to play again the next day. If that game doesn’t appeal to you then you should not trade. Gary Norden