Trading With Drummond Methods

Public discussion of the methodology

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Trader Question
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Trading With Drummond Methods

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In your opinion, what amount of margin would be required to trade the S&P Mini under the Drummond Methodologies described in the Track Record that you supplied?

.M.M
pldot
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Re: Trading With Drummond Methods

Post by pldot »

Well, the "official" e-mini minimum margin is $4K per contract for the initial position, and the track record for the aggressive trader sometimes adds a second position, and so that would be 8K. See"http://www.cme.com/" eudora="autourl">www.cme.com for details.

However, I would be much more conservative in my trading since there will be mistakes, learning curves, unexpected events, etc etc, and my rule-of-thumb would be to have $10 behind every contract at all times, thus, $20K for two contracts.

And furthermore, this only in the context of a net worth that will accommodate such trading (according to the guidelines in Lesson 29. )
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