Position Sizing with XAUUSD, XAGUSD and WTI

[tom82]

If I want to take into account the spread, would I add or subtract that to the number of pips/points risked?

 

[tom82]

So we have established that the formula to calculate position size for gold, silver and WTI is the following:
Amount to be Risked / size of SL / contract size = std lots

Can one use this formula to calculate position size for other commodities by replacing contract size with the contract (the usual standard) size of the commodity one wants to calculate position size for, eg natural gas (10000 mmbtu) or say corn (5000 Bushels)?

 

[tom82]

Yes 0.02 lots is 2 oz (for XAUUSD).
Hope you realise that the silver contract is a big one. If you can't trade gold profitably don't try silver.

My suggestions:
Don't try to scalp as your costs will be a huge hurdle to overcome. Try to target good R/R trade setups.
It's easy for me to point out the importance of good R/R but it's very difficult to stay in a trade when volatility increases suddenly.
Be aware that the commodity markets move during the UK session and can be very volatile during the US session (esp. 1hr before US open). Don't start a trade with a tight SL just prior to news or the start of the UK,US sessions.
The only thing that will help you stay in the great trades is a set of rules that you know works.
Your success will be determined by your trade management once you start a trade.

Start trading in only a few markets at first. Look at others when you are consistently profitable in your favourites. Commodity markets move when you are not looking at them (lol).

I would add good luck, but you really need to have a solid trading plan and an excellent grasp of risk management before you start.

Thanks for your help peter2, really appreciate it!

So if I wanted to work out the position size for a silver xagusd contract I would do the same as the gold and wti calculation as follows:
Say I wanted to risk $AUD100 ~ $USD93.11
Entry 19.506
Stop Loss 19.750
$93.11 / 0.244 / 5000 = 0.07 standard lots

Can you check this for me please.