Posted by jhbernstein on 21st of Sep 2023 at 06:17 pm
I use elements of both.
I only trade ES (for the tax advantage) and allocate 1
contract for every $16k in the account for each signal. (So a $32k
account would go long 3 contracts, a $64k account 4, etc.) Last
year I noticed a max of 8 entries in 1 direction at any one given
time, which would give me leverage of 8x in the account. A lot to
be sure, but that's what I feel I can withstand if/when things move
against me. If we got to more than 8 entries, I just wouldn't take
them.
I may decrease the allocation to 1 contract for every $20k in
the account just to give me a little more breathing room.
Posted by DigiNomad on 21st of Sep 2023 at 06:27 pm
Thanks, I'll map this strategy out to see how it works.
FWIW, I primarily use SPX for the same reason you only use ES. The
60/40 tax treatment is huge.
*I posted about SPY because that's what I use in smaller
accounts that can't handle SPX motional values
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I use elements of both. I
Ok. I've posted on this topic many times over the ...
Posted by jhbernstein on 21st of Sep 2023 at 06:17 pm
I use elements of both.
I only trade ES (for the tax advantage) and allocate 1 contract for every $16k in the account for each signal. (So a $32k account would go long 3 contracts, a $64k account 4, etc.) Last year I noticed a max of 8 entries in 1 direction at any one given time, which would give me leverage of 8x in the account. A lot to be sure, but that's what I feel I can withstand if/when things move against me. If we got to more than 8 entries, I just wouldn't take them.
I may decrease the allocation to 1 contract for every $20k in the account just to give me a little more breathing room.
Thanks, I'll map this strategy
Posted by DigiNomad on 21st of Sep 2023 at 06:27 pm
Thanks, I'll map this strategy out to see how it works. FWIW, I primarily use SPX for the same reason you only use ES. The 60/40 tax treatment is huge.
*I posted about SPY because that's what I use in smaller accounts that can't handle SPX motional values