A performance bond on a $20K account? I don`t have time to elaborate but will later... this whole thing does not make sense!
Thanks Spooz Top 2. It is the worst description or 'splaining of how futures margins/performance bonds AND how futures P/L math works that I've ever seen or read. And for those following along... the amount of "performance bond" (which is merely a 64000 USD term for the commonly used term "margin" when discussing futures) has no involvement on futures P/L trade math.
Those numbers were just examples, not the true numbers. It was a mistake to try to use 5 ES as a rhetorical scenario and the 2K requirement per contract, because I started conflating ES with MES in my head and it all came out sideways. Anyways, if you want to learn about performance bonds and don't want to read people here try to explain it, then go to the source. Watch the video on this page. https://www.cmegroup.com/clearing/risk-management/performance-bonds-margins.html
Ok thanks, I guess I was confused with the terms and thought you had some deal where you could maintain positions for less than 12k/1 ES contract overnight. Obviously holding long through the last 3 months has been pretty hazardous regardless.
Hazardous? It's been bloody awful. Putin' on the Ritz all right. What a shitlicker that guy is, messing up the world's economy.
Correct me if i'm wrong, but i think this is about the 3rd time in the last few years you've mentioned being long from the top. Obviously everything has continued to climb back to ATH at some point or another (and that may very well happen again), but wouldnt using stops be helpful to you? even if you are just trying to swing trade futures with small positions relative to account size?
Not based on how I perform using small stops in daytrading mode. I cannot seem to do well jumping in and out of markets all day long during these huge point-ranges we've been seeing. So I decided to just use the expiry as the stop. Unfortunately for me, the war happened. I knew I could handle the hike cycle, but the war has the ES suppressed an extra ~8% in my guesstimation. And because of the war, we are now starting to see some yield curves invert. IIRC, that's not good for the indices in general.
Did I ever mention that I hate your 80's big hair? I hope you smoke, considering how flammable all that hairspray is.