Question just popped out:?::!:
How you would calculate position size for futures?
For spot FX i do it based on account value,% of risk in terms of account value and stop loss in terms of $ worth.This way i almost always get fractional position size which is fine when you can trade fractional lots.Also risk is always the same.
I have thought one could round up the results(when it comes to futures) but that would mess up whit numbers in equitation.So probably not a good idea.
So i have came up whit idea to figure out position size for FX futures based on account value,maximal allowed leverage of account and contract worth.
For example,it would look like this:
PS=(AV x 3)/125 000
where
PS=Position size
AV=Account value
3=leverage(3 times account value)
125 000=contract value(i am not so certain is this number a standard for most FX futures)
It would also result in decimal number but as risk is not part of that equitation that would not matter.
And that is the problem whit that way(if it is a way)of calculating PS.
I really think that it is crucial to risk same amount in terms of % on every trade.
So,is there a way to add risk in terms of % in this equitation?
Or if it is all wrong,could someone be kind enough to share his way of position sizing for FX futures...
Regards,
VTK
