5% rule # of contracts/trades etc…
The 5% rule is more about risk management than anything. This is done on elite so you can ensure that it would take 6 losing trades in order to be knocked out for the day. Also it is done to ensure you don’t wipe out your account by over risking it. It is also about ensuring you don’t make a lot and give it all back by stopping when up 5%.
Yes that means taking each E and putting the stop and trailing stops… hence you can have multiple trades on at the same time - ie several positions open at one time so you would be making more than $1.00 a tick ie you have 5 positions open as you kept adding in. You don’t need to capture a 250 tick move (agreed a 250 tick move on 1 contract would be rare and difficult).
Most days you should not hit the 5% goal on the risk side.
Ideally you hit it on the profit side but may not hit a total of 5% on it as well. Some days you will hit it - some days you will exceed it depending on the day and the strategies used.
Combing more strategies can help with this (ie doing some butterflies on news or straddles/strangles on news.
Premium collection trades (you an make $25 if the market does not even move).
Expiration trend collection (like EPC but inverted) can have high payouts on a short move in a short time etc…
But first master one strategy get it down. Don’t worry about making 5% a day worry about trading well. As you master each strategy/system you can add to the plays in your playbook to make this easier. This is similar to what you are doing with the $1,000. Though with that you have the issue of now dividing 5% of 1000 by 6 so its not really helping you.
Don’t get stuck on the 5% of profit… Risk management is what this is about. Profit has a good tendency to take care of itself when risk management is in check.
Doubled
You are correct if you doubled your account you would double the contracts entered (ie the following month). This is realistic up to a point. At that point you should not be to concerned about it as y ou can also diversify into multiple instruments and strategies. This is often a concern (doubling up every month) of traders just beginning don’t worry about it till it actually is a problem By that time you are making a lot of money consistently note you are also pulling money out of the market so its not like you just keep doubling and keeping the money you do make withdrawals and by that time you can handle more markets and more strategies so you are not putting as much on every single trade as you are doing more. Don’t try to “eat the whole cow at one time” let that be a problem later… and its a good problem to have. When that is the problem let me know and we can work on your plan from there.
If you have 5k and do 5% / 6 that is 41 - most markets you risk about 26 on spreads. So you may decide to risk a little over 5% so you can stick with the 6 trade rule. ie 6 x 25 x 2 = 312 = .06% of 5k
You can do 2 markets or you can do double the contracts.
Where to Start
Your plan to start is master the system learn some style master execution of the trades and spread selection. Do this on one market doing the elite strategy. Once you have that down increase contracts or markets.Then from there you can even start doing binaries for elite, adding on EPC trades, doing butterflies, straddles and strangles. But you need to master 1 at a time. And don’t expect to hit the 5% daily or when you first start. One bite at a time…