Position size
Position size is how many contracts a strategy trades. It is the biggest choice you make, because it sets how much you can win and lose.
Micro vs. E-mini contracts
Section titled “Micro vs. E-mini contracts”| Contract | Size | Good for |
|---|---|---|
| Micro (MNQ, MGC) | 1/10 of an E-mini | Smaller accounts and fine-tuning size |
| E-mini (NQ) | Full size | Larger accounts |
One E-mini Nasdaq contract moves about 10 times more than one micro.
How we pick your size
Section titled “How we pick your size”We look at:
- How much money is in your account.
- Each strategy’s worst past drops.
- How big a drop you can live with without stopping.
Then we pick a size so that a bad stretch, like the worst we have seen, is one you can sit through.
Our rule of thumb
Section titled “Our rule of thumb”Start smaller than you think. You can add size later, after you have lived through some losing weeks. It’s much harder to recover from starting too big.
We suggest $35,000 or more to run the portfolio.