Contract sizing is one of the most important mechanical changes in the forex-to-futures transition. Forex traders may be used to fractional lot sizes; futures quantities are whole contracts, and each product has a defined multiplier and tick value.
This guide belongs to Trader Evolution Hub and focuses on contract sizing for forex prop traders moving into futures. It uses current official sources and links back to the PFB futures-firm directory, forex-to-futures migration guide and Education Center.
Table of Contents
- Start with the technical stop
- Convert stop distance into ticks
- Convert ticks into dollars per contract
- Set the internal trade-risk budget
- Calculate contracts and round down
- Use micros when minis are too coarse
- Add commissions and slippage
- Cap total portfolio heat
- Respect firm maximum contracts
- Size down after drawdown by rule
- Do not size up near targets
- Create a product sizing card
- Scenario laboratory
- Calculation framework
- Operating checklist
- Final framework
- Official sources and live verification
Start with the technical stop
A futures trader should understand Start with the technical stop mathematically. Choose the invalidation price first; contract quantity is calculated afterward.
Write the exact formula required for the decision. For contract sizing, that means risk dollars divided by stop-risk dollars per contract, rounded down to a permitted whole contract quantity. For consistency, use the program's current stated formula rather than an old rule from memory.
Then stress the formula. Add one extra tick of slippage, a larger-than-average spread and a correlated position. The internal budget should still have room. A hard prop boundary is not the place to assume ideal execution.
Scenario 1 also needs a no-trade outcome. If the minimum contract size exceeds acceptable risk, the correct size is zero. This is one of the biggest mindset differences for traders coming from highly granular forex lot sizing.
Keep formulas in the journal so sizing can be checked after the session rather than reconstructed from memory.
Convert stop distance into ticks
The market-microstructure side of Convert stop distance into ticks is where many forex traders discover genuinely new information. Divide the price distance by the product's minimum tick increment.
Futures exchange data can expose resting depth and completed transactions in a centralized market. That can improve context, but neither a large resting order nor aggressive transactions guarantee the next price move.
For contract sizing for forex prop traders moving into futures, define exactly how the new information would change an existing decision. If DOM or order flow has no prewritten effect on entry, stop, size or execution, it is probably visual noise.
Microstructure example 2 should be tested over many occurrences and after costs. New tools often feel predictive because they are vivid, but the standard remains net expectancy and risk-adjusted behavior.
Use the tool to improve execution or filtering only after the data shows it adds value.
Convert ticks into dollars per contract
The operational side of Convert ticks into dollars per contract deserves the same attention as the trading idea. Multiply ticks by official dollar value per tick.
Futures contracts expire, active months change and prop programs can impose their own session cutoffs or position limits. A strategy that ignores those mechanics is incomplete even if the chart logic is strong.
Build a pre-session routine that checks the active contract, product hours, firm cutoffs, maximum contracts, current loss boundary and any stage-specific rule. The routine should take place before market opportunity creates urgency.
In operations example 3, assume the trader has a valid setup but only a few minutes remain before a required cutoff. If the strategy's normal holding time cannot fit, the trade should be skipped rather than forced into an untested exit.
Operational discipline is part of edge preservation because it prevents non-market mistakes from consuming the same drawdown budget as normal losing trades.
Set the internal trade-risk budget
Set the internal trade-risk budget should be converted into an operating rule, not memorized as background theory. Use the prop account's usable drawdown and strategy variance rather than headline balance.
For contract sizing for forex prop traders moving into futures, start with four fields: exact market condition, exact product, dollar risk if the stop is hit and the account rule that can invalidate the trade. This makes the decision auditable before P&L changes the trader's judgment.
Build a numeric example. Convert the stop into points/ticks, multiply by the official dollar tick value and contract quantity, then add transaction cost and a slippage allowance. Compare the result with internal risk limits rather than the account's headline balance.
Example 4 should also include a platform or schedule failure. If the process only works when the trader selects the right month, enters the right quantity and exits perfectly, those controls belong in the checklist.
The final line of the section should answer one question: what measurable event makes the trader reduce size, skip the trade or stop the session?
Calculate contracts and round down
Calculate contracts and round down is a transfer-of-skill question. Risk budget divided by risk per contract gives theoretical size; futures quantity must be rounded down to whole permitted contracts.
Separate what comes from trading experience from what belongs to the instrument. Trend recognition, patience and invalidation can transfer. Lot sizes, pip values, continuous-symbol assumptions and broker-specific session habits do not.
Create a side-by-side test using the same strategic idea in forex and futures. Keep the hypothesis constant, then rebuild the size, cost, session and execution assumptions on the futures product. This reveals whether the edge survived or whether the trader merely copied the chart pattern.
Review case 5 without looking at the result first. If the trade used the wrong contract, exceeded internal risk or violated the account's current rule, it is a process failure even if it made money.
That distinction protects the trader from reinforcing bad habits during an early lucky streak.
Use micros when minis are too coarse
A futures trader should understand Use micros when minis are too coarse mathematically. Micro contracts can reduce granularity problems where the firm permits them.
Write the exact formula required for the decision. For contract sizing, that means risk dollars divided by stop-risk dollars per contract, rounded down to a permitted whole contract quantity. For consistency, use the program's current stated formula rather than an old rule from memory.
Then stress the formula. Add one extra tick of slippage, a larger-than-average spread and a correlated position. The internal budget should still have room. A hard prop boundary is not the place to assume ideal execution.
Scenario 6 also needs a no-trade outcome. If the minimum contract size exceeds acceptable risk, the correct size is zero. This is one of the biggest mindset differences for traders coming from highly granular forex lot sizing.
Keep formulas in the journal so sizing can be checked after the session rather than reconstructed from memory.
Add commissions and slippage
The market-microstructure side of Add commissions and slippage is where many forex traders discover genuinely new information. Stop-risk math should include realistic friction so a hard loss boundary is not approached on ideal assumptions.
Futures exchange data can expose resting depth and completed transactions in a centralized market. That can improve context, but neither a large resting order nor aggressive transactions guarantee the next price move.
For contract sizing for forex prop traders moving into futures, define exactly how the new information would change an existing decision. If DOM or order flow has no prewritten effect on entry, stop, size or execution, it is probably visual noise.
Microstructure example 7 should be tested over many occurrences and after costs. New tools often feel predictive because they are vivid, but the standard remains net expectancy and risk-adjusted behavior.
Use the tool to improve execution or filtering only after the data shows it adds value.
Cap total portfolio heat
The operational side of Cap total portfolio heat deserves the same attention as the trading idea. Two or more futures positions can share a macro or equity factor and should not be sized independently without correlation review.
Futures contracts expire, active months change and prop programs can impose their own session cutoffs or position limits. A strategy that ignores those mechanics is incomplete even if the chart logic is strong.
Build a pre-session routine that checks the active contract, product hours, firm cutoffs, maximum contracts, current loss boundary and any stage-specific rule. The routine should take place before market opportunity creates urgency.
In operations example 8, assume the trader has a valid setup but only a few minutes remain before a required cutoff. If the strategy's normal holding time cannot fit, the trade should be skipped rather than forced into an untested exit.
Operational discipline is part of edge preservation because it prevents non-market mistakes from consuming the same drawdown budget as normal losing trades.
Respect firm maximum contracts
Respect firm maximum contracts should be converted into an operating rule, not memorized as background theory. The prop maximum is a ceiling, not the result of the sizing formula.
For contract sizing for forex prop traders moving into futures, start with four fields: exact market condition, exact product, dollar risk if the stop is hit and the account rule that can invalidate the trade. This makes the decision auditable before P&L changes the trader's judgment.
Build a numeric example. Convert the stop into points/ticks, multiply by the official dollar tick value and contract quantity, then add transaction cost and a slippage allowance. Compare the result with internal risk limits rather than the account's headline balance.
Example 9 should also include a platform or schedule failure. If the process only works when the trader selects the right month, enters the right quantity and exits perfectly, those controls belong in the checklist.
The final line of the section should answer one question: what measurable event makes the trader reduce size, skip the trade or stop the session?
Size down after drawdown by rule
Size down after drawdown by rule is a transfer-of-skill question. Use a prewritten scale-down condition rather than emotional reaction.
Separate what comes from trading experience from what belongs to the instrument. Trend recognition, patience and invalidation can transfer. Lot sizes, pip values, continuous-symbol assumptions and broker-specific session habits do not.
Create a side-by-side test using the same strategic idea in forex and futures. Keep the hypothesis constant, then rebuild the size, cost, session and execution assumptions on the futures product. This reveals whether the edge survived or whether the trader merely copied the chart pattern.
Review case 10 without looking at the result first. If the trade used the wrong contract, exceeded internal risk or violated the account's current rule, it is a process failure even if it made money.
That distinction protects the trader from reinforcing bad habits during an early lucky streak.
Do not size up near targets
A futures trader should understand Do not size up near targets mathematically. Distance to a qualification or payout target should never be in the sizing formula.
Write the exact formula required for the decision. For contract sizing, that means risk dollars divided by stop-risk dollars per contract, rounded down to a permitted whole contract quantity. For consistency, use the program's current stated formula rather than an old rule from memory.
Then stress the formula. Add one extra tick of slippage, a larger-than-average spread and a correlated position. The internal budget should still have room. A hard prop boundary is not the place to assume ideal execution.
Scenario 11 also needs a no-trade outcome. If the minimum contract size exceeds acceptable risk, the correct size is zero. This is one of the biggest mindset differences for traders coming from highly granular forex lot sizing.
Keep formulas in the journal so sizing can be checked after the session rather than reconstructed from memory.
Create a product sizing card
The market-microstructure side of Create a product sizing card is where many forex traders discover genuinely new information. Keep tick size, tick value, normal stop ranges and maximum internal contracts visible for each product.
Futures exchange data can expose resting depth and completed transactions in a centralized market. That can improve context, but neither a large resting order nor aggressive transactions guarantee the next price move.
For contract sizing for forex prop traders moving into futures, define exactly how the new information would change an existing decision. If DOM or order flow has no prewritten effect on entry, stop, size or execution, it is probably visual noise.
Microstructure example 12 should be tested over many occurrences and after costs. New tools often feel predictive because they are vivid, but the standard remains net expectancy and risk-adjusted behavior.
Use the tool to improve execution or filtering only after the data shows it adds value.
Scenario laboratory
The scenarios below test the topic against realistic mistakes, losing sequences and operational constraints. The process repeats—verify, calculate, stress-test, act—but the market problem changes each time.
Scenario 1: MES stop is 10 points
Situation. The trader wants to risk a fixed dollar amount.
Core issue. point-to-tick conversion This ties back to Start with the technical stop: Choose the invalidation price first; contract quantity is calculated afterward.
Action. Convert 10 points to ticks using the product specification, then to dollars per contract. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 2: ES is too large
Situation. One contract exceeds the desired stop risk.
Core issue. granularity This ties back to Convert stop distance into ticks: Divide the price distance by the product's minimum tick increment.
Action. Use MES if permitted rather than compressing the stop. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 3: NQ volatility expands
Situation. The technical stop doubles in points.
Core issue. dynamic size This ties back to Convert ticks into dollars per contract: Multiply ticks by official dollar value per tick.
Action. Reduce contracts so dollar risk remains controlled. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 4: Two equity indexes trigger
Situation. ES and NQ signals arrive together.
Core issue. correlation This ties back to Set the internal trade-risk budget: Use the prop account's usable drawdown and strategy variance rather than headline balance.
Action. Cap combined equity-factor risk. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 5: Trader rounds up
Situation. The formula returns 2.7 contracts.
Core issue. whole-contract discipline This ties back to Calculate contracts and round down: Risk budget divided by risk per contract gives theoretical size; futures quantity must be rounded down to whole permitted contracts.
Action. Round down to 2, not up to 3. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 6: Commission-heavy scalp
Situation. The gross stop is small.
Core issue. friction This ties back to Use micros when minis are too coarse: Micro contracts can reduce granularity problems where the firm permits them.
Action. Add round-turn cost and slippage to practical risk. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 7: Near MLL
Situation. Remaining internal room is small.
Core issue. account state This ties back to Add commissions and slippage: Stop-risk math should include realistic friction so a hard loss boundary is not approached on ideal assumptions.
Action. Reduce to a smaller risk unit or stop trading. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 8: Firm permits 10 contracts
Situation. The sizing formula supports only 3.
Core issue. ceiling versus target This ties back to Cap total portfolio heat: Two or more futures positions can share a macro or equity factor and should not be sized independently without correlation review.
Action. Trade 3, not 10. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 9: Micro-to-mini ratio applies
Situation. The firm counts micros differently for its max-position rule.
Core issue. program rule This ties back to Respect firm maximum contracts: The prop maximum is a ceiling, not the result of the sizing formula.
Action. Check both risk size and firm counting convention. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 10: Winning streak
Situation. The trader wants to double size.
Core issue. recency bias This ties back to Size down after drawdown by rule: Use a prewritten scale-down condition rather than emotional reaction.
Action. Scale only if a prewritten rule permits it. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 11: MES stop is 10 points
Situation. The trader wants to risk a fixed dollar amount.
Core issue. point-to-tick conversion This ties back to Do not size up near targets: Distance to a qualification or payout target should never be in the sizing formula.
Action. Convert 10 points to ticks using the product specification, then to dollars per contract. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 12: ES is too large
Situation. One contract exceeds the desired stop risk.
Core issue. granularity This ties back to Create a product sizing card: Keep tick size, tick value, normal stop ranges and maximum internal contracts visible for each product.
Action. Use MES if permitted rather than compressing the stop. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 13: NQ volatility expands
Situation. The technical stop doubles in points.
Core issue. dynamic size This ties back to Start with the technical stop: Choose the invalidation price first; contract quantity is calculated afterward.
Action. Reduce contracts so dollar risk remains controlled. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 14: Two equity indexes trigger
Situation. ES and NQ signals arrive together.
Core issue. correlation This ties back to Convert stop distance into ticks: Divide the price distance by the product's minimum tick increment.
Action. Cap combined equity-factor risk. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 15: Trader rounds up
Situation. The formula returns 2.7 contracts.
Core issue. whole-contract discipline This ties back to Convert ticks into dollars per contract: Multiply ticks by official dollar value per tick.
Action. Round down to 2, not up to 3. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 16: Commission-heavy scalp
Situation. The gross stop is small.
Core issue. friction This ties back to Set the internal trade-risk budget: Use the prop account's usable drawdown and strategy variance rather than headline balance.
Action. Add round-turn cost and slippage to practical risk. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 17: Near MLL
Situation. Remaining internal room is small.
Core issue. account state This ties back to Calculate contracts and round down: Risk budget divided by risk per contract gives theoretical size; futures quantity must be rounded down to whole permitted contracts.
Action. Reduce to a smaller risk unit or stop trading. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 18: Firm permits 10 contracts
Situation. The sizing formula supports only 3.
Core issue. ceiling versus target This ties back to Use micros when minis are too coarse: Micro contracts can reduce granularity problems where the firm permits them.
Action. Trade 3, not 10. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 19: Micro-to-mini ratio applies
Situation. The firm counts micros differently for its max-position rule.
Core issue. program rule This ties back to Add commissions and slippage: Stop-risk math should include realistic friction so a hard loss boundary is not approached on ideal assumptions.
Action. Check both risk size and firm counting convention. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 20: Winning streak
Situation. The trader wants to double size.
Core issue. recency bias This ties back to Cap total portfolio heat: Two or more futures positions can share a macro or equity factor and should not be sized independently without correlation review.
Action. Scale only if a prewritten rule permits it. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 21: MES stop is 10 points
Situation. The trader wants to risk a fixed dollar amount.
Core issue. point-to-tick conversion This ties back to Respect firm maximum contracts: The prop maximum is a ceiling, not the result of the sizing formula.
Action. Convert 10 points to ticks using the product specification, then to dollars per contract. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 22: ES is too large
Situation. One contract exceeds the desired stop risk.
Core issue. granularity This ties back to Size down after drawdown by rule: Use a prewritten scale-down condition rather than emotional reaction.
Action. Use MES if permitted rather than compressing the stop. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 23: NQ volatility expands
Situation. The technical stop doubles in points.
Core issue. dynamic size This ties back to Do not size up near targets: Distance to a qualification or payout target should never be in the sizing formula.
Action. Reduce contracts so dollar risk remains controlled. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 24: Two equity indexes trigger
Situation. ES and NQ signals arrive together.
Core issue. correlation This ties back to Create a product sizing card: Keep tick size, tick value, normal stop ranges and maximum internal contracts visible for each product.
Action. Cap combined equity-factor risk. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 25: Trader rounds up
Situation. The formula returns 2.7 contracts.
Core issue. whole-contract discipline This ties back to Start with the technical stop: Choose the invalidation price first; contract quantity is calculated afterward.
Action. Round down to 2, not up to 3. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 26: Commission-heavy scalp
Situation. The gross stop is small.
Core issue. friction This ties back to Convert stop distance into ticks: Divide the price distance by the product's minimum tick increment.
Action. Add round-turn cost and slippage to practical risk. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 27: Near MLL
Situation. Remaining internal room is small.
Core issue. account state This ties back to Convert ticks into dollars per contract: Multiply ticks by official dollar value per tick.
Action. Reduce to a smaller risk unit or stop trading. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 28: Firm permits 10 contracts
Situation. The sizing formula supports only 3.
Core issue. ceiling versus target This ties back to Set the internal trade-risk budget: Use the prop account's usable drawdown and strategy variance rather than headline balance.
Action. Trade 3, not 10. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 29: Micro-to-mini ratio applies
Situation. The firm counts micros differently for its max-position rule.
Core issue. program rule This ties back to Calculate contracts and round down: Risk budget divided by risk per contract gives theoretical size; futures quantity must be rounded down to whole permitted contracts.
Action. Check both risk size and firm counting convention. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 30: Winning streak
Situation. The trader wants to double size.
Core issue. recency bias This ties back to Use micros when minis are too coarse: Micro contracts can reduce granularity problems where the firm permits them.
Action. Scale only if a prewritten rule permits it. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 31: MES stop is 10 points
Situation. The trader wants to risk a fixed dollar amount.
Core issue. point-to-tick conversion This ties back to Add commissions and slippage: Stop-risk math should include realistic friction so a hard loss boundary is not approached on ideal assumptions.
Action. Convert 10 points to ticks using the product specification, then to dollars per contract. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 32: ES is too large
Situation. One contract exceeds the desired stop risk.
Core issue. granularity This ties back to Cap total portfolio heat: Two or more futures positions can share a macro or equity factor and should not be sized independently without correlation review.
Action. Use MES if permitted rather than compressing the stop. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 33: NQ volatility expands
Situation. The technical stop doubles in points.
Core issue. dynamic size This ties back to Respect firm maximum contracts: The prop maximum is a ceiling, not the result of the sizing formula.
Action. Reduce contracts so dollar risk remains controlled. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 34: Two equity indexes trigger
Situation. ES and NQ signals arrive together.
Core issue. correlation This ties back to Size down after drawdown by rule: Use a prewritten scale-down condition rather than emotional reaction.
Action. Cap combined equity-factor risk. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 35: Trader rounds up
Situation. The formula returns 2.7 contracts.
Core issue. whole-contract discipline This ties back to Do not size up near targets: Distance to a qualification or payout target should never be in the sizing formula.
Action. Round down to 2, not up to 3. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 36: Commission-heavy scalp
Situation. The gross stop is small.
Core issue. friction This ties back to Create a product sizing card: Keep tick size, tick value, normal stop ranges and maximum internal contracts visible for each product.
Action. Add round-turn cost and slippage to practical risk. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 37: Near MLL
Situation. Remaining internal room is small.
Core issue. account state This ties back to Start with the technical stop: Choose the invalidation price first; contract quantity is calculated afterward.
Action. Reduce to a smaller risk unit or stop trading. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 38: Firm permits 10 contracts
Situation. The sizing formula supports only 3.
Core issue. ceiling versus target This ties back to Convert stop distance into ticks: Divide the price distance by the product's minimum tick increment.
Action. Trade 3, not 10. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 39: Micro-to-mini ratio applies
Situation. The firm counts micros differently for its max-position rule.
Core issue. program rule This ties back to Convert ticks into dollars per contract: Multiply ticks by official dollar value per tick.
Action. Check both risk size and firm counting convention. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 40: Winning streak
Situation. The trader wants to double size.
Core issue. recency bias This ties back to Set the internal trade-risk budget: Use the prop account's usable drawdown and strategy variance rather than headline balance.
Action. Scale only if a prewritten rule permits it. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 41: MES stop is 10 points
Situation. The trader wants to risk a fixed dollar amount.
Core issue. point-to-tick conversion This ties back to Calculate contracts and round down: Risk budget divided by risk per contract gives theoretical size; futures quantity must be rounded down to whole permitted contracts.
Action. Convert 10 points to ticks using the product specification, then to dollars per contract. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 42: ES is too large
Situation. One contract exceeds the desired stop risk.
Core issue. granularity This ties back to Use micros when minis are too coarse: Micro contracts can reduce granularity problems where the firm permits them.
Action. Use MES if permitted rather than compressing the stop. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 43: NQ volatility expands
Situation. The technical stop doubles in points.
Core issue. dynamic size This ties back to Add commissions and slippage: Stop-risk math should include realistic friction so a hard loss boundary is not approached on ideal assumptions.
Action. Reduce contracts so dollar risk remains controlled. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 44: Two equity indexes trigger
Situation. ES and NQ signals arrive together.
Core issue. correlation This ties back to Cap total portfolio heat: Two or more futures positions can share a macro or equity factor and should not be sized independently without correlation review.
Action. Cap combined equity-factor risk. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 45: Trader rounds up
Situation. The formula returns 2.7 contracts.
Core issue. whole-contract discipline This ties back to Respect firm maximum contracts: The prop maximum is a ceiling, not the result of the sizing formula.
Action. Round down to 2, not up to 3. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 46: Commission-heavy scalp
Situation. The gross stop is small.
Core issue. friction This ties back to Size down after drawdown by rule: Use a prewritten scale-down condition rather than emotional reaction.
Action. Add round-turn cost and slippage to practical risk. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 47: Near MLL
Situation. Remaining internal room is small.
Core issue. account state This ties back to Do not size up near targets: Distance to a qualification or payout target should never be in the sizing formula.
Action. Reduce to a smaller risk unit or stop trading. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 48: Firm permits 10 contracts
Situation. The sizing formula supports only 3.
Core issue. ceiling versus target This ties back to Create a product sizing card: Keep tick size, tick value, normal stop ranges and maximum internal contracts visible for each product.
Action. Trade 3, not 10. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 49: Micro-to-mini ratio applies
Situation. The firm counts micros differently for its max-position rule.
Core issue. program rule This ties back to Start with the technical stop: Choose the invalidation price first; contract quantity is calculated afterward.
Action. Check both risk size and firm counting convention. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 50: Winning streak
Situation. The trader wants to double size.
Core issue. recency bias This ties back to Convert stop distance into ticks: Divide the price distance by the product's minimum tick increment.
Action. Scale only if a prewritten rule permits it. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 51: MES stop is 10 points
Situation. The trader wants to risk a fixed dollar amount.
Core issue. point-to-tick conversion This ties back to Convert ticks into dollars per contract: Multiply ticks by official dollar value per tick.
Action. Convert 10 points to ticks using the product specification, then to dollars per contract. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 52: ES is too large
Situation. One contract exceeds the desired stop risk.
Core issue. granularity This ties back to Set the internal trade-risk budget: Use the prop account's usable drawdown and strategy variance rather than headline balance.
Action. Use MES if permitted rather than compressing the stop. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 53: NQ volatility expands
Situation. The technical stop doubles in points.
Core issue. dynamic size This ties back to Calculate contracts and round down: Risk budget divided by risk per contract gives theoretical size; futures quantity must be rounded down to whole permitted contracts.
Action. Reduce contracts so dollar risk remains controlled. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 54: Two equity indexes trigger
Situation. ES and NQ signals arrive together.
Core issue. correlation This ties back to Use micros when minis are too coarse: Micro contracts can reduce granularity problems where the firm permits them.
Action. Cap combined equity-factor risk. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 55: Trader rounds up
Situation. The formula returns 2.7 contracts.
Core issue. whole-contract discipline This ties back to Add commissions and slippage: Stop-risk math should include realistic friction so a hard loss boundary is not approached on ideal assumptions.
Action. Round down to 2, not up to 3. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 56: Commission-heavy scalp
Situation. The gross stop is small.
Core issue. friction This ties back to Cap total portfolio heat: Two or more futures positions can share a macro or equity factor and should not be sized independently without correlation review.
Action. Add round-turn cost and slippage to practical risk. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 57: Near MLL
Situation. Remaining internal room is small.
Core issue. account state This ties back to Respect firm maximum contracts: The prop maximum is a ceiling, not the result of the sizing formula.
Action. Reduce to a smaller risk unit or stop trading. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 58: Firm permits 10 contracts
Situation. The sizing formula supports only 3.
Core issue. ceiling versus target This ties back to Size down after drawdown by rule: Use a prewritten scale-down condition rather than emotional reaction.
Action. Trade 3, not 10. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 59: Micro-to-mini ratio applies
Situation. The firm counts micros differently for its max-position rule.
Core issue. program rule This ties back to Do not size up near targets: Distance to a qualification or payout target should never be in the sizing formula.
Action. Check both risk size and firm counting convention. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 60: Winning streak
Situation. The trader wants to double size.
Core issue. recency bias This ties back to Create a product sizing card: Keep tick size, tick value, normal stop ranges and maximum internal contracts visible for each product.
Action. Scale only if a prewritten rule permits it. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 61: MES stop is 10 points
Situation. The trader wants to risk a fixed dollar amount.
Core issue. point-to-tick conversion This ties back to Start with the technical stop: Choose the invalidation price first; contract quantity is calculated afterward.
Action. Convert 10 points to ticks using the product specification, then to dollars per contract. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 62: ES is too large
Situation. One contract exceeds the desired stop risk.
Core issue. granularity This ties back to Convert stop distance into ticks: Divide the price distance by the product's minimum tick increment.
Action. Use MES if permitted rather than compressing the stop. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 63: NQ volatility expands
Situation. The technical stop doubles in points.
Core issue. dynamic size This ties back to Convert ticks into dollars per contract: Multiply ticks by official dollar value per tick.
Action. Reduce contracts so dollar risk remains controlled. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 64: Two equity indexes trigger
Situation. ES and NQ signals arrive together.
Core issue. correlation This ties back to Set the internal trade-risk budget: Use the prop account's usable drawdown and strategy variance rather than headline balance.
Action. Cap combined equity-factor risk. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 65: Trader rounds up
Situation. The formula returns 2.7 contracts.
Core issue. whole-contract discipline This ties back to Calculate contracts and round down: Risk budget divided by risk per contract gives theoretical size; futures quantity must be rounded down to whole permitted contracts.
Action. Round down to 2, not up to 3. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 66: Commission-heavy scalp
Situation. The gross stop is small.
Core issue. friction This ties back to Use micros when minis are too coarse: Micro contracts can reduce granularity problems where the firm permits them.
Action. Add round-turn cost and slippage to practical risk. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 67: Near MLL
Situation. Remaining internal room is small.
Core issue. account state This ties back to Add commissions and slippage: Stop-risk math should include realistic friction so a hard loss boundary is not approached on ideal assumptions.
Action. Reduce to a smaller risk unit or stop trading. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 68: Firm permits 10 contracts
Situation. The sizing formula supports only 3.
Core issue. ceiling versus target This ties back to Cap total portfolio heat: Two or more futures positions can share a macro or equity factor and should not be sized independently without correlation review.
Action. Trade 3, not 10. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 69: Micro-to-mini ratio applies
Situation. The firm counts micros differently for its max-position rule.
Core issue. program rule This ties back to Respect firm maximum contracts: The prop maximum is a ceiling, not the result of the sizing formula.
Action. Check both risk size and firm counting convention. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Scenario 70: Winning streak
Situation. The trader wants to double size.
Core issue. recency bias This ties back to Size down after drawdown by rule: Use a prewritten scale-down condition rather than emotional reaction.
Action. Scale only if a prewritten rule permits it. The action must be selected before the trade result is known.
Risk calculation. Identify the exact product and contract month, technical invalidation, stop distance in points/ticks, official dollar value per tick and contract quantity. Add realistic costs and adverse execution allowance before comparing the trade with internal risk limits.
Account check. Verify the current program stage, position-size limit, loss boundary, consistency or payout rule where relevant. Do not carry a rule from evaluation into funded stages unless the current official documentation confirms it.
Review. Record whether the decision followed the intended process. A good outcome from a bad process remains a process failure; a normal loss from a correct process remains useful evidence.
Calculation framework
| Input | Question | Decision use |
|---|---|---|
| Product + month | What exactly is being traded? | Prevents wrong-contract execution |
| Tick size/value | What is one minimum movement worth? | Converts chart distance into dollars |
| Technical stop | Where is the setup invalid? | Defines risk per contract |
| Contract quantity | How many whole contracts fit? | Must be rounded down to permissible risk |
| Transaction friction | What spread/commission/slippage is realistic? | Adjusts gross edge to net edge |
| Firm risk state | How much internal buffer remains? | Can reduce the mathematically possible size |
Operating checklist
- Memorize tick size/value for core products.
- Place technical stop before calculating size.
- Convert points to ticks accurately.
- Add commission and slippage.
- Use internal drawdown-based risk.
- Round contract quantity down.
- Check firm maximum contracts.
- Aggregate correlated positions.
- Use micros for finer granularity when permitted.
- Keep targets out of the sizing formula.
Final framework
The futures sizing sequence is simple but unforgiving: stop first, ticks second, dollars per contract third, contracts last. A forex trader who learns that order avoids most lot-to-contract translation mistakes.
The standard across every section is the same: verify the current rule, use the actual futures specification, calculate risk before quantity and judge the process independently of the outcome.
Official sources and live verification
- CME Group: Tick Movements — Official tick-size and tick-value education.
- CME Group: Contract Trading Codes — Official product/month-code guide.
- CFTC Futures Market Basics — Official futures-market structure and risk overview.
Verified September 25, 2026. Rules and contract specifications can change; re-check the exact account and product before trading.
Field workbook 1: ES is too large
Write the strategy's original forex assumption first, then rewrite it using futures-specific variables. The live situation is: One contract exceeds the desired stop risk. The goal is to make hidden transfer errors visible before they reach the order ticket.
Run the dollar-risk calculation from the product specification and technical stop. Then add a stress case for slippage and another for correlated exposure. If a reasonable adverse path approaches the account's hard rule, reduce quantity or take no trade.
Add one behavioral condition. Decide what happens after a loss, after a large win and near a target or payout milestone. The strategy should not change simply because the account is emotionally important.
Finally, identify the evidence required to change the plan: a meaningful sample, a documented rule update, a persistent execution difference or a proven improvement in expectancy. One dramatic trade is not enough.
Field workbook 2: Trader rounds up
Write the strategy's original forex assumption first, then rewrite it using futures-specific variables. The live situation is: The formula returns 2.7 contracts. The goal is to make hidden transfer errors visible before they reach the order ticket.
Run the dollar-risk calculation from the product specification and technical stop. Then add a stress case for slippage and another for correlated exposure. If a reasonable adverse path approaches the account's hard rule, reduce quantity or take no trade.
Add one behavioral condition. Decide what happens after a loss, after a large win and near a target or payout milestone. The strategy should not change simply because the account is emotionally important.
Finally, identify the evidence required to change the plan: a meaningful sample, a documented rule update, a persistent execution difference or a proven improvement in expectancy. One dramatic trade is not enough.
Field workbook 3: Firm permits 10 contracts
Write the strategy's original forex assumption first, then rewrite it using futures-specific variables. The live situation is: The sizing formula supports only 3. The goal is to make hidden transfer errors visible before they reach the order ticket.
Run the dollar-risk calculation from the product specification and technical stop. Then add a stress case for slippage and another for correlated exposure. If a reasonable adverse path approaches the account's hard rule, reduce quantity or take no trade.
Add one behavioral condition. Decide what happens after a loss, after a large win and near a target or payout milestone. The strategy should not change simply because the account is emotionally important.
Finally, identify the evidence required to change the plan: a meaningful sample, a documented rule update, a persistent execution difference or a proven improvement in expectancy. One dramatic trade is not enough.
Field workbook 4: MES stop is 10 points
Write the strategy's original forex assumption first, then rewrite it using futures-specific variables. The live situation is: The trader wants to risk a fixed dollar amount. The goal is to make hidden transfer errors visible before they reach the order ticket.
Run the dollar-risk calculation from the product specification and technical stop. Then add a stress case for slippage and another for correlated exposure. If a reasonable adverse path approaches the account's hard rule, reduce quantity or take no trade.
Add one behavioral condition. Decide what happens after a loss, after a large win and near a target or payout milestone. The strategy should not change simply because the account is emotionally important.
Finally, identify the evidence required to change the plan: a meaningful sample, a documented rule update, a persistent execution difference or a proven improvement in expectancy. One dramatic trade is not enough.
Field workbook 5: Two equity indexes trigger
Write the strategy's original forex assumption first, then rewrite it using futures-specific variables. The live situation is: ES and NQ signals arrive together. The goal is to make hidden transfer errors visible before they reach the order ticket.
Run the dollar-risk calculation from the product specification and technical stop. Then add a stress case for slippage and another for correlated exposure. If a reasonable adverse path approaches the account's hard rule, reduce quantity or take no trade.
Add one behavioral condition. Decide what happens after a loss, after a large win and near a target or payout milestone. The strategy should not change simply because the account is emotionally important.
Finally, identify the evidence required to change the plan: a meaningful sample, a documented rule update, a persistent execution difference or a proven improvement in expectancy. One dramatic trade is not enough.
Field workbook 6: Near MLL
Write the strategy's original forex assumption first, then rewrite it using futures-specific variables. The live situation is: Remaining internal room is small. The goal is to make hidden transfer errors visible before they reach the order ticket.
Run the dollar-risk calculation from the product specification and technical stop. Then add a stress case for slippage and another for correlated exposure. If a reasonable adverse path approaches the account's hard rule, reduce quantity or take no trade.
Add one behavioral condition. Decide what happens after a loss, after a large win and near a target or payout milestone. The strategy should not change simply because the account is emotionally important.
Finally, identify the evidence required to change the plan: a meaningful sample, a documented rule update, a persistent execution difference or a proven improvement in expectancy. One dramatic trade is not enough.
Field workbook 7: Winning streak
Write the strategy's original forex assumption first, then rewrite it using futures-specific variables. The live situation is: The trader wants to double size. The goal is to make hidden transfer errors visible before they reach the order ticket.
Run the dollar-risk calculation from the product specification and technical stop. Then add a stress case for slippage and another for correlated exposure. If a reasonable adverse path approaches the account's hard rule, reduce quantity or take no trade.
Add one behavioral condition. Decide what happens after a loss, after a large win and near a target or payout milestone. The strategy should not change simply because the account is emotionally important.
Finally, identify the evidence required to change the plan: a meaningful sample, a documented rule update, a persistent execution difference or a proven improvement in expectancy. One dramatic trade is not enough.
Field workbook 8: NQ volatility expands
Write the strategy's original forex assumption first, then rewrite it using futures-specific variables. The live situation is: The technical stop doubles in points. The goal is to make hidden transfer errors visible before they reach the order ticket.
Run the dollar-risk calculation from the product specification and technical stop. Then add a stress case for slippage and another for correlated exposure. If a reasonable adverse path approaches the account's hard rule, reduce quantity or take no trade.
Add one behavioral condition. Decide what happens after a loss, after a large win and near a target or payout milestone. The strategy should not change simply because the account is emotionally important.
Finally, identify the evidence required to change the plan: a meaningful sample, a documented rule update, a persistent execution difference or a proven improvement in expectancy. One dramatic trade is not enough.
Field workbook 9: Commission-heavy scalp
Write the strategy's original forex assumption first, then rewrite it using futures-specific variables. The live situation is: The gross stop is small. The goal is to make hidden transfer errors visible before they reach the order ticket.
Run the dollar-risk calculation from the product specification and technical stop. Then add a stress case for slippage and another for correlated exposure. If a reasonable adverse path approaches the account's hard rule, reduce quantity or take no trade.
Add one behavioral condition. Decide what happens after a loss, after a large win and near a target or payout milestone. The strategy should not change simply because the account is emotionally important.
Finally, identify the evidence required to change the plan: a meaningful sample, a documented rule update, a persistent execution difference or a proven improvement in expectancy. One dramatic trade is not enough.
Field workbook 10: Micro-to-mini ratio applies
Write the strategy's original forex assumption first, then rewrite it using futures-specific variables. The live situation is: The firm counts micros differently for its max-position rule. The goal is to make hidden transfer errors visible before they reach the order ticket.
Run the dollar-risk calculation from the product specification and technical stop. Then add a stress case for slippage and another for correlated exposure. If a reasonable adverse path approaches the account's hard rule, reduce quantity or take no trade.
Add one behavioral condition. Decide what happens after a loss, after a large win and near a target or payout milestone. The strategy should not change simply because the account is emotionally important.
Finally, identify the evidence required to change the plan: a meaningful sample, a documented rule update, a persistent execution difference or a proven improvement in expectancy. One dramatic trade is not enough.
Field workbook 11: ES is too large
Write the strategy's original forex assumption first, then rewrite it using futures-specific variables. The live situation is: One contract exceeds the desired stop risk. The goal is to make hidden transfer errors visible before they reach the order ticket.
Run the dollar-risk calculation from the product specification and technical stop. Then add a stress case for slippage and another for correlated exposure. If a reasonable adverse path approaches the account's hard rule, reduce quantity or take no trade.
Add one behavioral condition. Decide what happens after a loss, after a large win and near a target or payout milestone. The strategy should not change simply because the account is emotionally important.
Finally, identify the evidence required to change the plan: a meaningful sample, a documented rule update, a persistent execution difference or a proven improvement in expectancy. One dramatic trade is not enough.
Field workbook 12: Trader rounds up
Write the strategy's original forex assumption first, then rewrite it using futures-specific variables. The live situation is: The formula returns 2.7 contracts. The goal is to make hidden transfer errors visible before they reach the order ticket.
Run the dollar-risk calculation from the product specification and technical stop. Then add a stress case for slippage and another for correlated exposure. If a reasonable adverse path approaches the account's hard rule, reduce quantity or take no trade.
Add one behavioral condition. Decide what happens after a loss, after a large win and near a target or payout milestone. The strategy should not change simply because the account is emotionally important.
Finally, identify the evidence required to change the plan: a meaningful sample, a documented rule update, a persistent execution difference or a proven improvement in expectancy. One dramatic trade is not enough.
Frequently asked questions
Choose the invalidation price first; contract quantity is calculated afterward. For contract sizing for forex prop traders moving into futures, use the current program rules and official futures specifications before applying the concept.
Divide the price distance by the product's minimum tick increment. For contract sizing for forex prop traders moving into futures, use the current program rules and official futures specifications before applying the concept.
Multiply ticks by official dollar value per tick. For contract sizing for forex prop traders moving into futures, use the current program rules and official futures specifications before applying the concept.
Use the prop account's usable drawdown and strategy variance rather than headline balance. For contract sizing for forex prop traders moving into futures, use the current program rules and official futures specifications before applying the concept.
Risk budget divided by risk per contract gives theoretical size; futures quantity must be rounded down to whole permitted contracts. For contract sizing for forex prop traders moving into futures, use the current program rules and official futures specifications before applying the concept.
Micro contracts can reduce granularity problems where the firm permits them. For contract sizing for forex prop traders moving into futures, use the current program rules and official futures specifications before applying the concept.
Stop-risk math should include realistic friction so a hard loss boundary is not approached on ideal assumptions. For contract sizing for forex prop traders moving into futures, use the current program rules and official futures specifications before applying the concept.
Two or more futures positions can share a macro or equity factor and should not be sized independently without correlation review. For contract sizing for forex prop traders moving into futures, use the current program rules and official futures specifications before applying the concept.
The prop maximum is a ceiling, not the result of the sizing formula. For contract sizing for forex prop traders moving into futures, use the current program rules and official futures specifications before applying the concept.
Use a prewritten scale-down condition rather than emotional reaction. For contract sizing for forex prop traders moving into futures, use the current program rules and official futures specifications before applying the concept.
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