To be fair - E2T’s drawdown stops trailing after your profits exceed the initial trailing drawdown. With some other firms that is not the case and obviously for a reason.
I think the mini-gauntlet is their only worthwhile product. I have no idea why anyone would do their normal one. Isn't futures trading always subject to the 60/40 tax? Even if they don't specify at one of these companies, wouldn't you still report your income as you normally would as a daytrader?
A 3K drawdown on a 50K account doesn’t seem like much to me as a day trader of futures - unless you utilize very low leverage.
I think for those gauntlet accounts, you want low leverage. I only add obscene leverage when I'm right anyway.
K, so you are saying that on a $50K account, after you earn $3K, the limit to fail on the account is if the balance drops to $52,999? If so...WHY? What is it about that arbitrary number? Why is it not 1K, or 10K?
That's not how it works here either. The drawdown never goes over $50000. So you would only fail by dropping below $50000. You can make $25000 on a $50k account and your drawdown remains at $50000, making it pretty much impossible to ever blow your account if you know how to trade.
Okay. So you’re specifically talking about these programs. Wasn’t sure. If yes, I agree. Low leverage is the way to go.
So on a $50K account, you are saying that you fail if your account balance reaches $49,999. That means there is NO drawdown allowed, period.
This is how it goes, at oneuptrader at least. the numbers may vary slightly based on the company. Some do not have this trailing drawdown, I think maybe most do, but they have some variation of this. Day 1: $50k balance, Drawdown $47500. Profit 1k, Drawdown goes up 1k. Day 2: $51k balance, Drawdown now $48500. Lose $500. Drawdown doesn't move. Day 3: $50500 balance, Drawdown still $48500. Profit 2k. Total profit is +$2.5k, so drawdown moves up $1.5k to equal $2.5k above initial of $47500 = $50k. Day 4: $52500 balance, Drawdown $50k. Lose $1k. Drawdown doesn't move. Day 5: $51500 balance, Drawdown still $50k. Make $5k. Day 6: $56500 balance, Drawdown stays $50k forever, until you go below $50k (you shouldn't anyway but that's the only way you fail). Get it? However, when you withdraw your $3.5k one day and your account goes down to $53000, you have to be aware your drawdown is still $50k. It will remain there for life. For what it's worth Earn2trade has the same system. I haven't looked at all of them in depth yet but I will soon. "This continues until your trailing drawdown reaches the starting balance of your account, or in this case $25,000.00, at which point the drawdown will no longer trail above $25,000.00."