Professional Position Sizing & Risk Management System

Risk Management Strategy Overview

Systematic approach to position sizing with real-time margin requirements

Essential Trading Parameters

1%
Risk Per Trade
2 ATR
Stop Loss Distance
20 Days
Entry Breakout
10 Days
Exit Signal
4 Units
Max Per Market
20%
Max Total Risk

Position Sizing Formula

Contracts = (Equity × 0.01) / (ATR × Point Value × 2)

Position Sizing Calculators

Calculate optimal position sizes with current market prices and actual margin requirements

Position Size Calculator

Real-Time Margin Monitor

Current Market Conditions

Margins as of June 2025 - Subject to change with volatility

Margin Safety Guidelines

  • Maintain 50%+ margin cushion for safety
  • Never use more than 70% of available capital
  • Keep reserves for margin increases
  • Monitor maintenance requirements daily

Current Market Prices & Margins

Live market data with exchange margin requirements - June 2025

Energy
Metals
Grains
Softs
Livestock
Indices
Currencies
Financials
Contract Symbol Current Price Contract Value Initial Margin Margin % Point Value
Crude Oil WTI CL $70.68/barrel $70,680 $6,593 9.3% $1,000
Natural Gas NG $3.90/MMBtu $39,000 $3,813 9.8% $10,000
RBOB Gasoline RB $2.38/gallon $99,960 $7,317 7.3% $42,000
Heating Oil HO $2.36/gallon $99,120 $7,464 7.5% $42,000
Brent Crude BZ $71.68/barrel $71,680 $5,967 8.3% $1,000
Ethanol CU $1.70/gallon $71,400 $2,464 3.5% $42,000

Trading Rules & Guidelines

Systematic rules for consistent risk management

Entry & Exit Rules

Entry Signal

  • Buy when price exceeds 20-day high
  • Sell short when price breaks 20-day low
  • Place stop-loss immediately at 2 ATR
  • No anticipation - wait for actual breakout

Exit Signal

  • Exit longs when price breaks 10-day low
  • Exit shorts when price breaks 10-day high
  • Stop-loss hit (2 ATR from entry)
  • Account drawdown reaches 20%

Position Management

Pyramiding Strategy

Initial Entry 1 unit at breakout
First Add +1 unit at +0.5 ATR
Second Add +1 unit at +1.0 ATR
Final Add +1 unit at +1.5 ATR
Stop Adjustment Move all stops to 2 ATR from newest entry

Risk Limits

  • Per Trade: 1% of account equity
  • Per Market: Maximum 4 units (4%)
  • Correlated Group: Maximum 6 units (6%)
  • Total Account: Maximum 20 units (20%)
  • Drawdown Limit: Stop trading at -10%

Market Correlations

Understanding relationships between markets for proper diversification

Correlation Groups

Group Name Markets Included Max Units Key Drivers
Energy Complex CL, BZ, RB, HO, NG, CU 6 units max OPEC, Supply/Demand, Weather
Precious Metals GC, SI, PL, PA 6 units max Dollar, Inflation, Safe Haven
Grains ZC, ZS, ZW, ZM, ZL, ZO 6 units max Weather, Crop Reports, Exports
Softs CT, KC, SB, CC, OJ, LBR 6 units max Weather, Seasonal, EM Demand
Livestock LE, GF, HE, KM, DC, CB, CSC 6 units max Feed Costs, Disease, Demand
Stock Indices ES, NQ, YM, RTY 6 units max Fed Policy, Earnings, Economy
Currencies 6E, 6B, 6J, 6S, 6A, 6C 6 units max Central Banks, Interest Rates
Interest Rates ZB, ZN, ZF, ZT 6 units max Fed Policy, Inflation Data

Important Disclaimer

RISK DISCLOSURE: Trading futures involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results.

MARKET DATA: Prices shown are as of June 2025 and subject to rapid change. Always verify current prices before trading.

MARGIN NOTICE: Margin requirements shown are from exchange data and subject to change without notice. Brokers may require higher margins. Always verify current margins with your broker.

NO GUARANTEE: The Alsanaviss system is provided for educational purposes only. No guarantee of profitability is made or implied.

© 2025 Alsanaviss. All rights reserved. Market data provided by exchanges. Unauthorized reproduction prohibited.