10 Days With TopStepTrader

HurricaneUS · Aug 22, 2013

quoting this from another forum...

https://www.bigmiketrading.com/trad...-20d-topsteptrader-combine-57.html#post351675

Quote from DarkPoolTrading :

@jlwade123, make sure you do the maths behind every rule change. Don't just take emails like this at face value thinking it 'sounds good' or makes things easier.

Case in point, one of the new rule changes is to implement the minimum balance clause detailed here

In summary, your maximum drawdown trails your maximum end of day account balance until such time as you've reached your maximum drawdown in profits. Only then do you start building more of a cushion. eg:

In a 50k combine your maximum drawdown is $2000. Under the current rules if you were to end day 1 of trading up $1000 your balance would be $51 000. You then have a 'cushion' of $3000 until you reach your max drawdown. ie: $51 000 - $3000 = $48 000

Under the proposed rules, in the same combine after being up $1000 at the end of a day your balance would still be $51000. BUT,..your minimum now trails your max balance and remains at the original $2000. Meaning that your new maximum drawdown is now $51000 - $2000 = $49000. This continues until such time as you've made more than your max drawdown in profits.

What this results in, is essentially instead of being able to build a 'cushion' straight away by moving away from your max drawdown. You actually remain extremely close to your max drawdown until you've made that amount in profits. Only then do you start building a cushion.

Another recent example of where most traders seemed to take rule changes at face value instead of doing the maths behind it was the change from a 'minimum number of days' format to a discreet format, eg:

Using a 50k 20day combine as an example, under the previous rules you had to trade a minimum of 20 trading days in a 60 calendar day period. In 60 trading days there are typically +-42 trading days. The profit target was $5000. So you had 42 trading days to make $5000. An average of 5000 / 42 = $119 per day.

Under the current rules since the change to a discreet format, you only get 20 trading days in a 60 calendar day period (ie: not a minimum of 20 trading days, but a discreet amount). Using the same 50k 20 day combine example, the profit is now $3500. Most traders seemed to think this was great because they took it at face value. Do the maths. An average of $3500 / 20 days = $175 per day is now required.

Both the prior rule change and this one are making the combine incrementally more difficult (and in my opinion more removed from simulating a live trading environment. The rules should better simulate live trading which was the case a few months ago - but that's another discussion). Do the maths on all rule changes.

More...

Pekelo · Aug 22, 2013

Although I agree with Magna that the conversation got offtopic, but at least it was interesting and trading related.

But going back to Austin, I still want to know how he was allowed to finish a blown Combine???

--------------------------------------

And to stay slightly offtopic, Pekelo wins! TST is getting ride of the stupid parameters!

"These changes will go into effect for new accounts starting August 28, 2013.
Under the new Combine Rules, we've eliminated all performance metric requirements, "

They were stupid to begin with, good job TST listening to me...The only 2 that made sense were the max. DD and the daily loss limit.

satchel · Aug 22, 2013

Trailing the dd behind the account peak, that is down to one basic rule: make money keep money, and make some more. Not some chop-suey equity curve. Sounds smart, in the wide net they will keep the good ones.

igotcash · Aug 22, 2013

I have a blog where I try to charge 5,000 for intensive trading. I get an email once every month, and I try my best to sell to this poor soul.

you gotta make money somehow, right?

imagine if his blog said:

4 failed combines
13 losing trades in a row
10 years "experience"

now give me money.

even a used car salesman lies, come on. honest people finish last in sales.

volente_00 · Aug 22, 2013

So when they say all performance metrics are gone, does this include the minimum profit amounts as well ?

Magna · Aug 22, 2013

Guys, this is austinp's journal thread. If you want to have a discussion regarding the nuances of TST's business model or Combine program please continue that conversation in the proper thread: TopstepTrader and Patak Trading Partners- Easy to read QUESTIONS and ANSWERS. Thanks.

austinp: if you want the journal re-opened drop me a PM

Log in or Sign up

10 Days With TopStepTrader

HurricaneUS

Pekelo

satchel

igotcash Guest

volente_00

Magna Administrator