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On sizing for DAX futures swings vs. long-term equity positions
Been trading for about a year now, mostly paper, but started dipping my toes in with small live positions on DAX futures. My question is around position sizing, specifically how you veteran traders adjust it between these shorter-term, higher-leverage products like DAX futures swings and longer-term, more capital-intensive positions in something like $ASML or $SAP. I find myself using a fixed percentage of total capital for both, which feels off for the inherent volatility and margin requirements of futures. Am I overcomplicating this, or is there a common method to differentiate risk allocation for these very different asset classes/timeframes?
2 comments · 16 points
Ah, the age-old question of whether to bet the farm on a two-hour DAX swing or gently tend your ASML seedlings for a decade. I've found that my 'fixed percentage' seems to have a flexible interpretation depending on how much coffee I've had and how loudly the futures market is yelling at me that day.