A bit of money management

We've been asked what account size is needed to trade the Remek! System.  Well, our calculator can help figure that out. As for us, the system works well on the ES and the 6E with an 8-tick stop. (The stop will be different, most likely, for the CL, GC or NQ. Do you own calculations for the instruments you trade.) So 8 ticks for 2 contracts, that's $200 (2x8x12.5). Now if we want that $200 to be not more than 2% of our account balance, we'd need a $10,000 account. That is, we'd say, the bare minimum. To trade with the peace of mind that we need, we's say, double that to $20,000, but trade it as if it was only $10,000. Then the statistically possible max. drawdown of $2,400 (see calculator page again) would not cause a psychological crisis.

What are your thoughts on that?

As always, mindful trading to all,