Sizing ES Positions by Account Balance and Risk Limits
Most ES beginners size trades based on “what feels right,” which is why they blow their accounts in a week. ES moves fast, and one bad trade can hit your daily loss limit instantly. This guide gives you the exact position sizing logic pros use so you can survive long enough to learn.
Step 1: Know Your Dollar Risk Per Trade
Forget fancy formulas. You only need one number: Max dollar loss you’re willing to take on a single ES trade.
Standard recommendations:
- Small accounts: 0.5%–1% of total balance
- Prop accounts: 1/20th of daily loss limit
If you don't know how your daily volatility affects stops, review ES ATR Volatility Zones.
Step 2: Calculate the Stop Size Based on ES Volatility
ES stop size depends on ATR and structure. Typical intraday stops:
| Market Condition | Typical Stop |
|---|---|
| Low volatility | 3–5 points |
| Normal volatility | 5–8 points |
| High volatility | 10–15 points |
Stops smaller than volatility guarantee getting wicked out.
Step 3: Convert Stop Size Into Dollar Risk
ES = $50 per point. So:
| Stop Size | Dollar Risk (per contract) |
|---|---|
| 5 points | $250 |
| 8 points | $400 |
| 10 points | $500 |
If a 5-point stop is too expensive, your account is too small for ES — use MES.
Step 4: Position Size Formula
The formula is brutally simple:
Contracts = (Max risk per trade) ÷ (Stop dollar value)
Example: $300 risk per trade and $250 stop size → 1 contract. $600 risk per trade and $250 stop size → 2 contracts.
Step 5: Respect the Daily Loss Limit
Prop accounts get blown because traders take three “one last try” trades. Your daily loss limit = your hard ceiling. One ES stop can equal half the daily limit — be smart.
Final Takeaway
ES position sizing isn’t emotional. It’s math. Know your max risk per trade, set a stop based on actual ES volatility, and size contracts accordingly. If the math says your size is too big, listen — ES punishes oversized traders instantly.