A Small Micro Portfolio From the Newsletter

Sept. 11, 2024

This week we’re looking at Micro contracts in the Futures market.

The reason?

Trading “normal” contract sizes could mean we’d need tens of thousands of dollars to get started.

We want to theoretically start with a lot less than that.

So here’s an example.

Let’s take a system from the August 16th Newsletter. This was a system that buys on pullbacks using the RSI and the details are in that link. At the time of that writing, it was one of my new favorite systems.

(Is it still? Definitely.)

In that Newsletter, we traded a full contract and that required at least a $15,000 account to get started.

Instead, let’s trade 1 Micro ES contract.

Here’s the Report via Portfolio Architect with no compounding:

The drawdown has definitely dropped due to the smaller contract size and now we’d only need a $1,518 to trade it.

We might want more or less in our account depending on our risk tolerance but we could get started with less than $1,600.

Now let’s add another Newsletter system, this one from August 23rd. See the Newsletter here.

This one buys on Monday and uses an evil filter.

Here’s the Report:

We’d need another $1,518 to trade this one. Actually we could try it with less but we’d have to add more money if they both were in a trade at the same time. So, to be safe, we’d probably use about $3,000.

Now let’s put them both together.

Here’s the Report trading a hypothetical $3k account:

Not bad. The profit is a nice amount and the drawdown is less than an index fund.

As always, compounding gains would make this even better.

And we could do it with about $3,000 in our account.

Talk to you soon.

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Disclaimer:
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.