Account margin and position size

[alex.nt]

Hi,

I would like to calculate my maximum allowed position size if:

• Account balance is 100,000 USD
• I can risk 10% = $10,000 at each trade
• Entry is 1580.00
• Stop is 1579.75
• I am trading ES mini (PointValue=$50, TickValue=$12.50, TickSize=0.25)

So theoretically, I can risk with $10000/(Entry - Stop) = 10000/12.5 = 800 contracts.

However, this is too high value as it does not consider margin and any other possible expenses.

How should I calculate the position if I would like to use margin data in my calculations?

Thank you.

[NinjaTrader_PatrickH]

Hello alex.nt,

Thank you for your post.

I am looking into this matter and will follow up with you shortly.

[NinjaTrader_PatrickH]

Hello alex.nt,

Thank you for your patience.

There is no method to pull the margin data from the account, you would have to enter this manually.

Please let me know if I may be of further assistance.

[sledge]

Your broker would allow 800 on $100,000?

I think max would be 197 or so at my broker.

$1500 for 1st, then $500 each contract after.

Hi,

I would like to calculate my maximum allowed position size if:

• Account balance is 100,000 USD
• I can risk 10% = $10,000 at each trade
• Entry is 1580.00
• Stop is 1579.75
• I am trading ES mini (PointValue=$50, TickValue=$12.50, TickSize=0.25)

So theoretically, I can risk with $10000/(Entry - Stop) = 10000/12.5 = 800 contracts.

However, this is too high value as it does not consider margin and any other possible expenses.

How should I calculate the position if I would like to use margin data in my calculations?

Thank you.

[koganam]

Hi,



I would like to calculate my maximum allowed position size if:

• Account balance is 100,000 USD
• I can risk 10% = $10,000 at each trade
• Entry is 1580.00
• Stop is 1579.75
• I am trading ES mini (PointValue=$50, TickValue=$12.50, TickSize=0.25)

So theoretically, I can risk with $10000/(Entry - Stop) = 10000/12.5 = 800 contracts.

However, this is too high value as it does not consider margin and any other possible expenses.

How should I calculate the position if I would like to use margin data in my calculations?

Thank you.

The margin has nothing to do with the calculation, unless you are going to use the margin to determine what your total risk should be. As margin is set by the exchange, and is not a parameter of the contract that NT tracks anywhere, you would still have to input the margin manually somehow, whether directly from the PropertyGrid, or by reading from a file in which you have recorded the various margins per instrument. OTOH, I guess you do need to use the margin to determine what the maximum number of allowed contracts will be.

Your calculation is correct as is. You have a StopLoss of 1-tick!! You divide that into the total risk amount. If you used a more reasonable (?) StopLoss, your trade size should come down considerably. Heck, even a 1-point StopLoss would reduce your trade size to 200 contracts. Are you sure that you really meant a 1-tick StopLoss? Hm, that must make you a perfect trader. You enter, and the market takes off immediately, without even ticking back from the Ask to the Bid?

[alex.nt]

Gentlemen, please stay calm, that 1 tick stop loss was just an example