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Trading With Drummond Methods
Posted: Tue Oct 28, 2008 1:14 pm
by Trader Question
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
Re: Trading With Drummond Methods
Posted: Tue Oct 28, 2008 1:19 pm
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. )