1 Forex Mini Lot = 1 Nadex Contract

S2 - Steward - Resource Management position size
1

Darrell,

Could you create a Nadex Position Size Calculator?

Fields would be…

Account Balance Risk Percentage % Cost of Bull Spread/Binary-----------(Directional Trade) Cost of Hedge/Straddle/Strangle—(since total of both costs should be added together)

When you click on the CALCULATE button

You get the following result…

Number or Nadex Contracts

I think it would help the members calculate their position size quickly. As you know from your own experience… Your position size increases/decreases as your account balance increases/decreases and you are still risking only 5%.

Thank you.

2

Definitely position size should always be based on risk

nadex spreads all being worth $1 tick makes precise risk management very easy

In some cases you won’t have a stop loss so that would simply be max risk

Which post are you referring to regarding so many traders asking about position size

I cover this in the 5% risk management video

If you need a calculator let me know i can make any calc and put it on the site

3

A consistent small profit of just 20 ticks daily quickly adds up. Of course, you will be adding more contracts as your account balance increases or you can withdraw all your profits when you desire; if you are supplementing your income.

4

Yes I would be happy to… its a simple excel.calculator I will make a Web one and post it next week. Though I don’t risk 5%…that is a daily risk not a single trade risk. Watch the 5% video I go into this in Great detail. Also I don’t compound up.in size more than 1x a month

5

Before I place a trade on the NADEX platform, regardless of which financial instrument I decide to trade. I look at “AVAILABLE” in the upper left. I input that amount into my calculator. Every trader’s appetite for the amount they risk is different from trader to trader. These are the examples I show to family and friends when I explain how I trade NADEX Binaries/Spreads.

Nadex gives every trader $25,000 when they open a demo. The Formula: (you must press the percent key % on your calculator to get the amount of contracts I am showing) Risk 0.1% Available X 0.1% = Amount of Contracts / $25,000 X 0.1% = 25 Nadex Contracts Risk 0.2% Available X 0.2% = Amount of Contracts / $25,000 X 0.2% = 50 Nadex Contracts Risk 0.3% Available X 0.3% = Amount of Contracts / $25,000 X 0.3% = 75 Nadex Contracts Risk 0.4% Available X 0.4% = Amount of Contracts / $25,000 X 0.4% = 100 Nadex Contracts Risk 0.5% Available X 0.5% = Amount of Contracts / $25,000 X 0.5% = 125 Nadex Contracts

I am comfortable risking 0.2% on each trade, Long or Short. I only trade “Trending” financial instruments. So as an example with $25,000 as my starting “Available” balance. This is how I would “Manage” my trades…

I look at my charts and see Forex is trending. First trade - $25,000 X 0.2% = 50 Nadex Contracts. I always have an exit, so I place a “Limit Order” after my order is filled to exit with a profit.

I continue to look at my charts and see Energy is trending. Second trade - $20,000 X 0.2% = 40 Nadex Contracts. Order is filled, I place a “Limit Order” to take profit.

Now I go back to my charts and find my last trade, Metals are trending. Third trade - $16,000 X 0.2% = 32 Nadex Contracts. Order is filled, I place a “Limit Order” to take profit.

If I have “Available” $16,480 X 0.2% and it calculates to 32.96, I drop the numbers after the decimal point and trade 32 Nadex Contracts.

This is what I show to family and friends. It is what works for me.