Scaling: position limits and the scaled DLL

What is the maximum position?

The limit counts mini-equivalents across all products at the same time. Micros count one tenth of a mini. Orders that would exceed the limit are rejected; there is no penalty beyond the rejection.

How does the Daily Loss Limit scale once funded?

On funded Cycle and Direct accounts, once your balance is above the initial trail balance (starting balance + initial Max Loss Limit), the fixed Daily Loss Limit is replaced by 60% of your highest end-of-day profit. The new limit ratchets: it rises with each new peak and never comes down. It is never lower than the fixed amount of your size.

What is the Stream maximum daily profit?

On Stream accounts, a single day whose closed profit reaches the maximum daily profit moves the account to Live at once: $6,000 on a 25K, $8,000 on a 50K, $10,000 on a 100K, $12,000 on a 150K. The simulated profit above the buffer is paid up to $15,000. Stream accounts do not receive a Live Bonus.

How should you size relative to the limits?

A useful check is the number of full stops a day allows. On a 100K Cycle with a $1,800 daily limit and a 10-point ES stop on 2 contracts ($1,000 per stop), the day allows one stop and part of a second before the block. The same stop on 6 contracts blocks the day on the first loss.

Common mistakes

• Reading the position limit as per product and stacking ES and NQ to double it.
• Forgetting that micros count: 60 MES is the whole 100K limit.
• Sizing to the scaled daily limit right after a peak, then trading through a drawdown at the same size.

Sources

• CME Group, Micro E-mini equity index contract specifications: a micro is one tenth of the E-mini, which is why ten micros count as one mini.