E-mini S&P 500 (ES) on Topstep

Trading the E-mini S&P 500 (ES) at Topstep offers traders access to one of the most liquid futures markets with flexible risk parameters. With account sizes up to $150,000 and the ability to trade up to 10 ES contracts, Topstep provides substantial leverage for ES trading strategies.

Position sizing for ES at Topstep requires careful consideration of the firm's end-of-day trailing drawdown system. Unlike intraday drawdown calculations, your drawdown floor only adjusts at market close based on your closing balance, which means you can withstand larger intraday swings without violating rules. This is particularly advantageous for ES trading, given the contract's volatility during key sessions like the New York open or major economic announcements.

When trading ES at Topstep, your position size should align with both the daily loss limit and overall drawdown tolerance. With ES moving $12.50 per tick, a 20-tick move against a single contract costs $250. On a $100,000 account, this represents just 0.25% of your buying power, but could be a significant portion of your daily loss allowance depending on your account's drawdown limits.

The trailing end-of-day system works well for ES swing trading strategies, as you can hold positions overnight on funded accounts without worrying about intraday profit peaks affecting your drawdown calculation. This allows for strategies that capture multi-day trends in the S&P 500, particularly around earnings seasons or Federal Reserve announcements when ES often shows sustained directional moves.

Practical risk management for ES at Topstep should focus on keeping total risk per trade under 0.5% of account value. Consider using wider stops during high-volatility periods like the first 30 minutes after market open, when ES can easily move 10-15 ticks in minutes. The 10-contract maximum provides ample scaling opportunities, but newer traders should start with 1-2 contracts while learning Topstep's risk parameters. Remember that news trading is allowed, making ES an excellent choice for trading FOMC announcements, NFP releases, and other high-impact events that typically create significant moves in the S&P 500 futures.

On a $100,000 Topstep account, trading 2 ES contracts with a 15-tick stop risks $375 (2 × 15 × $12.50). This represents less than 0.4% of your account value, providing a conservative risk-to-capital ratio that aligns well with Topstep's drawdown requirements.