If you're trading Futures daily with high order frequency, and you want to reduce your trading costs without sacrificing winrate or the number of quality setups, here's a simple method for you.

Start by looking at the typical Futures trading fees. In most cases, it's around 0.02% for maker orders and 0.05% for taker orders.

Assuming you only use taker orders, the total round-trip fee (entry + exit) would be 0.1%. If this cost equals roughly 5% of your expected profit, it's generally negligible. This means your TP distance (Entry to TP) should be at least 40 times larger than 0.05%, or 2% in price movement.

However, measuring entry-to-TP distance manually is a bit inconvenient, so we flip the formula: let's base it on the SL distance instead. Just take your TP multiple (e.g., 5R) and divide 2% by that.

For example, if your TP is set at 5R, then your minimum acceptable SL should be 2% / 5 = 0.4%. If your SL is smaller than that, it's a good idea to skip the trade.

Simple formula:

Minimum SL = Trading Fee % × 40 / TP

This approach helps you filter out setups that might generate a profit, but where fees take away too much of your edge—without needing to sacrifice trading frequency or winrate.

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