I would like to know how and when system developers use scaling. If there is someone with futures and how his subscribers receive signals.
The question arose as I trade on C2 taking into account how I would trade with a real account. My main system started from 50k and when now at the moment when deciding on the opening of the position, the calculation goes from the system with 50k and the factor after. Those. If the system gives a signal to open one position with 2 contracts (for 50 thousand) then having 120 now, I open 4 with a 50% scaling factor.
Do You have any thoughts on this matter? Thank you.
if you are a follower you scale the exact position size of the trader. So if the trader uses 2 contracts and you use 50% scaling you will trade 1 contract. Doesn´t matter how large the accounts are. So you have to decide yourself how to adapt your scaling. That´s why you can go over 100% scaling, to serve large accounts.
scaling just means you mirror % of the strategy’s current balance. a sub w/ 50k balance who joined you when you were at 50k at 100%, he still be at 100%. a sub w/50k who joins u later when you are at 100k, he might get his scaling to 50%. another sub who joins you with 500k, he will set 100% on 5 different strategies or 200% scaling to your strategy only if he wants to commit 200k to follow u.
It also depends on how many contracts you are going to trade in future with your strategy.
Are you going to increase the size of contracts depending on the size of your own account?
Or are you always going to use the same size of contracts like last month (2-6 contracts) ?
Let’s assume you are a very good trader and in a few years your C2-model account
will reach 1Mio$, and you are using 20-60 contracts per trade by that time.
New subscribers with only 50K have to adapt their personal C2-scaling by the factor
of 20 (down from 100% to 5%). Then they will be able to follow you with 1-3 contracts.
As a new subscriber I started to following your strategy with a personal 50% scaling.
If you open 6 contracts, I’ll get 3 in my account
If you open 5 contracts, I’ll get only 2 in my account
If you open 4 contracts, I’ll get 2 in my account
If you open 3 contracts, I’ll get only 1 in my account
If you open 2 contracts, I’ll get 1 in my account
If you open only 1 contract, I’ll get zero in my account
So, for subscribers a even number of contracts is better to adapt/scale.
Hi Vince, AlexanderG, VixTrader! Thank for information. I just wanted to clarify whether I understood the scaling correctly. So with the increase in the size of the account on C2, I increase the number of contracts, since I would trade on my account. Since I have a certain system of risks, it implies that at a certain level of the deposit there is an increase in risks. These levels are 50k 75k 115k 175k 250k, etc. With increasing risks, the number of contracts with them increases. And they are so chosen that it is possible to divide conveniently. I wanted to know how and how.
So thank You for clarifying the situation. Thank you.
This is up to you.
If it is part of your strategy to increase the numbers of contracts
depending on the size of your own account, then do so.
Other strategies always keep the same size of contracts all the time.
Subribers can upscale themselves 200% - 500% if they want.
If you increase the risk, it’s important to let your subscribers know.
Not every subscriber wants to increase the risk together with you.
Your strategy involves about 65%-70% loosing trades, and 30%-35% profitable trades.
That means that most subscribers will loose Money in the beginning,
before they might recover after 2-3 months.
Not everyone is comfortable to lose 8K in one day (like last friday),
Those subscribers will probably not increase the risk.
I think it is fair to assume that most subscribers would prefer that the developer does not increase the position size as the account grows but let the subscriber decide if he wants to scale up or down.
Okay, I see. Yes, subscriber can loose some money at start - as Monte-Carlo ruin can show to us that in my strategy we can lose at 10% deposit at 28% chance. About contracts… I think them need to included when wants to start a trade. Also I think about to do not icrease a positions… but want’s not to Destroy a Idea of money management… In the end of The Week I will show You what I’m thinking about it. Thanks. Regards.