Disliked{quote} 1 contract of the e-mini S&P is $50 per point ($12.50 per tick), not $5 per point. You're thinking of the e-micro, perhaps? {quote} The starting point, with a prop firm "$50,000" account, is to understand clearly that the actual account size is $2,000 or $2,500 or whatever the account-loss drawdown level is. Clearly, if you lose that, the account’s gone, so that’s the account size, isn’t it? If I wanted 2% risk ($40 on a $2,000 account), I’d see where the chart predicates my SL should go (for me, that’s just beyond the last swing-high/low...Ignored
Yes but that’s what I mean. Since futures are standardized it’s not possible to calculate a percentage based position size according to your stop loss distance.
Let’s say you have a trade setup where the stop loss would make sense to place 40 Points away from your entry but you can’t scale down your position size so 40 Points would still equal a max 1 or 2% risk based on your account balance. Then all you could do is not to place the trade or lower your stop loss distance even if that means placing the stop at a less favorable technical level than you would like to have it.
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