Hi guys You’ve helped me before so I thought this would be the first place to come for my question. I’m just looking for a little advice and maybe some statistics from the back testing I’m sure someone has done. I’ve done a lot myself but there are random days that don’t load that well on ninjatrader for me, so I’m not 100% confident in my findings especially the farther back I go. (I do rollover contract months appropriately and load >125 days when necessary)
QUESTION: I use NTB for my futures account. How many contracts is safe to trade on NQ using IZSS per $ amount trend and chop trading from 9am-3pm consistantly. (I personally don’t do swings only because I haven’t back tested sufficiently)
ASSUMPTION 1: Using the 5% rule for when to stop for the day and how many contracts to trade wouldn’t amount to doubling capital every month but every 5 months. Using NQ it would be 1 contract for every 25k in account when max loss is around 36 ticks and average loss is around 20 ticks.
ASSUMPTION 2: Average week is +50 points (200 ticks) which would mean an account size of 1 contract per $4,000 in account would be ideal. However, the biggest draw down streak I found was -80 points between two big 20+ point trends. Margin is $500 + 80 points draw down = $2,100 minimum to trade 1 contract safely.
REAL QUESTION: Does the back testing from IZSS (or your personal experience) dictate that I have a high probability of staying safe trading 1 contract on NQ for every 3k in my account for 3 months until I reach my goal and start trading 1 contract for every 5k in my account and eventually 1 contract for every 10k in my account which is where I would like to stay at.
Let me know if I can clarify anything.