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Would larger stops be a mistake,considering high volatility, smaller contract (i.e. E-mini) and moving up to the large contract?

April 26, 2017considering contract e-mini high larger mistake smaller Stops volatility

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Would larger stops be a mistake,considering high volatility, smaller contract (i.e. E-mini) and moving up to the large contract?

1 Answer

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It depends on the win/loss ratio, average gain to average loss, and your account size, but in no circumstances (at our $30,000 account size) would any winning system risk over 300 points per contract. This applies to the E-mini or the S&P500. Due to many market factors, including volatility and price action, we have recently adjusted our account parameters to allow for a larger account size (i.e. larger stop) which requires a larger account size of $75,000.