Trend Catcher Starting Capital?

S2 - Steward - Resource Management capital management
1

Hello everyone,

I’ve been studying the Elite system for months now and am feeling comfortable with the different trades and ninjatrader platform.

However, with the release of TC I feel more (psychologically) comfortable with the risks associated so TC is where I want to start.

All the market replay I’ve done can only help so much so I am planning on taking a week off to trade the markets live using TC.

I have a few questions about my starting account balance (For trading Futures):

  1. $7500 seems sufficient if I take into account drawdowns x 4 for most instruments?

  2. With that 7.5k would it be unwise to trade more than one instrument to start? The drawdown of one instrument could be offset by the wins of the other, or perhaps I could end up with drawdowns on both instruments at the same time and be finished?

  3. Are we applying the 5%/6 rule? It seems that in order for the stats to be accurate one would have had to have taken all possible trades, correct?

I’m just looking for outside input so that I start out managing risk properly and with realistic expectations.

Thanks so much!

Blake

2

Hey there, I’m definitely not an authority as I’m only a beginning trader, but it would seem to me that $7500 is a very ample amount to start with…in fact, I’m only starting with $1000 doing TC. I was wondering about the 5% rule myself; I would imagine it would apply but am curious to know myself.

3

Noobie,

Are you going to be trading futures or the 5 min binaries for TC?

4

duckowner yes at least 3x the max drawdown + margin minimum on the trend catcher for futures forex stocks etc… would be suggested…

ideally yes the 5%/6 rules should be used just for good risk management though this should be easier… though understand this is a goal and sometimes you have to work up to playing in those risk paramater rules with risk capital while your ideally building it to that level…Once your at that level then STICK to the 5% / 6 rule as your account grows

noobie58 - 1,000 is fine for 5 minute binaries TC system or for forex mini lots on the regular TC System but not for futures