...and the trades... Comments...? Suggestions...? Overall, I think I traded well... managed the losses well and I held on to the ES winner well. Unfortunately I took too many losses to make it to the +$1000.00 goal today!
Actually, it`s not obvious to everyone, since a lot of people in this thread have misunderstood this rule. Also, you did not quote it directly, since you stated: I will stop trading if my Net P&L is greater than $500 OR my net P&L has pulled back ___% off my high watermark (Realized net P&L high of the day). Pullback should NOT be greater than 50%. I substituted OR with AND from your original quote, which makes it a completely different rule.
That is true Maverick. Guys so everyone knows, we work with all traders (within reason). We have a standard evaluation that we have put together from what we know through experience and from what we see each and every day on the account board (which btw I updated my twitter @michaelpatak this morning with those that are up the most from overnight trading (just bc they are up doesn't mean to much as far as their overall trading is considered, just an fyi)). Seeing people trade everyday and coaching and talking to them, you get strong confirmation on the "what not to do's' in this business. The Scouting Criteria we have helps guide that trader to a point that trading with proper mechanics and having discipline is just what is so in their every day. (though we are human and slip up) To add to the subject on evaluation in the Combine or starting live, recruits/new live traders can propose edits or customization. Lastly, number 3 of the trading plan is VERY effective we have found to help a trader "keep the money in their pocket" on a trading day when they are up and doing well. There were many times well over a year back that we would back traders and watch them be up $800 then $1500 then take a loss, then look at the account and see negative -$800 and the day (or opportunity in the day) was over. That doesn't help you build an account especially during the most critical time of your trading career with PTP (which is the beginning, or coming out of the gate so to speak). Many successful guys trading, and traders we have been around (as a scout team) as well as myself had 'high watermark' type shut off rules. mp
What happens if you're up only $100 and that's top % for the day then you drop to $50 or -50%..., do you continue trading or shut off for the day...?
They have to draw the line somewhere... It`s $1000 for the larger account. But who knows, maybe it`s negotiable. Either way, it`s not a rule that should limit the trader by any means, rather the opposite. And yes, after the cushion is built, which is only $5000, the trader is free to do as he pleases.