maildigger

When prices are between my entry & my stop I still believe things will work out for the trade.

5% at max in a week

I trade the ES intraday. I use fairly small stops (2.5 points). My average position uses a leverage of 6.5x the value of my account (If I use a 100K$ account, I trade 10 contracts which is the equivalent of +- 650K$). When in a trade I want to risk at max 1% of the account value. This is under "normal" conditions. But what happens if I ever get stuck in position due to a "disaster event" (markets close when in a long position, opens up later with a gap down)? The leverage will hit my account substantially. Is there a way I could use a long term position in another instrument to protect my account? Maybe put options? Any ideas about this? Is this do-able?

How do you handle leverage with the E-mini's? I'll use an example: Lets say you have a 100K $ account Lets say your max risk for a trade is 2% of the capital Lets say you use a 2.5 point stop for ES 2.5 x 50$ = 125$ 2% of 100K = 2000$ 2000/125= 16 So your trading size would be 16 contracts (or for each 6250$ you take 1 contract). Is that a good ratio? When do you "become" over-leveraged?

What's your plan when those thins happens ?

pretty goog ... if you can make 100$/day/contract on average

I would like to discuss more in general how one could evaluate a tradingmethod (based on objectif ratio's). How do you "know" you have a certain edge?

Are there more simple methods that could be used to evaluate?

Maybe I should ask another question! How would you compare (on which criteria) 2 systems and determine which one is better?

*both systems traded in may & june *both systems trade the US indices *no overnight risk *max daily risk = 2.5% of capital A) 40% winners 60% losers expectancy/contract = 0.6 point made 23% B) 60% winners 40% losers expectancy/contract = 3.25 point made 8%

Maybe you could take notes of the calls and than make a decession ...

yes ... keep it a secret and trade it

Jperl, would you agree that your trading-methodology works best if we have a trend(day) ?

I would like to keep an eye on the movements of the Dow Jones index during RTH. Which instrument/index/tracker/future would be best suitable for this if you keep in mind that I also want to look at the volume for my analysis ?

Lets say I risk 2% of my account if I take a position in ES. My stop is placed 20 points away from my entry. If I don't want to be (over-)leveraged that means that I need to have a 50K $ account to trade just one contract. What if 'something' happened ... My stop does not get filled at -20 points. That should result in a bigger drawdown (>2%) but not an account blowup. Ok. The market is halted while in a position and re-opens with a big gap away from my entry. This could seriously damage my account. Or do I overestimate this risk by looking for a hedge? Or do you think that by the time the market is halted you should be out of the position?