What is a Factor and How Much Capital Do I Need?
What is a Factor and How Much Capital Do I Need? Explanation of the factor system and the minimum investment per trading system.
What is a factor?
At Systems2follow we work with a factor system. One factor represents one full participation position in a trading system. The factor determines how much capital is actively deployed and how large the potential return in euros will be.
Simply put: the more factors you take, the greater your participation and the higher your euro return can be. More factors also qualify you for higher subscription discounts.
How much capital do I need per factor?
The required investment differs slightly per system, depending on the strategy and margin structure. The table below gives an indicative overview:
| System | Capital per factor | Trader / Type |
|---|---|---|
| RVM Retirement (RVMR) | €12,000 | Ruud van Megen · Defensive |
| RVM Strategy (RVMS) | €12,000 | Ruud van Megen · Stocks |
| ES Stock Trading (ESST) | €12,500 | Henry van Ginkel· Long stocks |
| ES Buy & Hold (ESBH) | €15,000 | Henry van Ginkel · Passive |
| ES Small Caps (ESSC) | €5,000 | Henry van Ginkel · Small-cap |
| ProfitShield | €25,000 | S2F Team · Protection |
| S&P500 Weekoptie | €25,000 | Bram Voermans · Options |
| Global ETF Rotation | €10,000 | Ruud Hoefnagels · ETF rotation |
| Passief Inkomen Portefeuille | €15,000 | JRM Beheer |
ℹ️ On request: For systems listed as “on request”, we determine the right investment amount together with you, depending on your total portfolio and objectives. Contact us for a personal advice call.
Multiple factors or multiple systems?
You can expand your portfolio in two ways:
- More factors in the same system – e.g. factor 3 in RVM Retirement. Your investment would then be approximately €30,000 and you receive a higher subscription discount.
- Combining multiple systems – e.g. spreading across RVM Retirement and ES Stock Trading. This provides more diversification.
Which approach best suits you depends on your risk profile and available capital. See also the article Which Systems Should I Combine Best?
Can I start with less than €10,000?
The minimum investment is aligned with the broker’s margin requirements and the underlying strategy. Factors are not divisible – a half factor is not possible.
If you have less than the minimum amount available, we recommend starting with the free trial registration or the €1 trial subscription so you can first get to know how the system works. Contact our team for personal advice about your situation.
⚠️ The amounts mentioned are indicative. Exact margin requirements may vary depending on market conditions. Always request a personal advice call for the current minimum investment.