Query to Mat re Automatic Stop Loss at OEC

Hi Matthew,

When setting an Automatic Stop Loss it says "Put in dollar amount per position"

When a futures system routinely trades 2 contracts and I want to cap the total loss of the 2 positions at $1,000 do I put in $1,000 or $500 ($500 for each contract)?

In the case of a system that routinely trades 2 contracts (and where you AutoTrade the system using 100% scaling - i.e. where you also trade with 2 contracts), if you enter a stop loss of $1,000 per position, that means your trade will be closed when the sum of the profit and loss for both contracts is $1,000. In other words, when a system opens two contracts, that is considered one position.

Thanks Matthew for the quick response.

And now a related question: If a system trades normally with just one contract and I scale to 300% and I want to cap the total loss at $1,500, do I enter $1,500 or $500 ($500 for each contract traded)?

And to make it more complicated: If the system without warning all of a sudden trades 2 contracts what would happen then?

The main thing to remember is that C2’s Automatic Stop Loss facility worries about the loss on a per-position basis. It doesn’t matter how many contracts you trade, or how many contracts the system trades. A “position” is a “position” – whether it’s 1 contract … or 2 contracts … or 100 contracts. If you want to cap the loss per position at $1,500, then just type “$1,500” – regardless of the number of units you trade.