E2T and TopStep any long term traders?

Discussion in 'Prop Firms' started by tango29, Jul 8, 2020.

  1. tango29


    Curious if either of these firms have people who passed their tests and have stuck around for the long term? What is the average time someone stays with your firms after passing? How about what's the longest time someone has stayed on trading?
  2. fan27


    Good luck getting those metrics.
    traderjo likes this.
  3. tango29


    I know, just wanted to see of there would be a response and what numbers would be thrown out.
  4. In my opinion I would think these companies are just stepping stones for traders who develop skills to be consistently profitable. Once they have made some money and saved up some then they are better off trading from their own account and keeping 100%

    The reasons for my opinion are:

    once you are consistently profitable under them and have made profits and have saved at least the money equivalent to you maximum starting “trailing drawdown” then what is the point of continuing to trade with them? Most (if not all) of the companies incorporate into their funding programs “trailing Max drawdowns” and many of them also calculate the trailing max drawdown from your unrealized P&L if that figure is greater than your realized P&L and many of them (if not all) also eliminate the trailing max drawdown once your (unrealized or realized) Initial Trading P&L has touched ( or crossed) that amount and then after that point you are only trading with your own profits because they don’t allow you to go under the zero line anymore like you could have on day 1 of your funded Acct and also if you withdraw all profits they close your account (because now you are at $0 balance) and they no longer provide any funding —-as their funding was what allowed to you to go under $0 at the beginning of your funded account.

    The one exception might be E2T’s regular gauntlet since it provides a starting maximum “fixed” drawdown of $2,500. But still $2,500 is not really that much funding. A “fixed drawdown” of $10,000 (or more) seems like decent recurring funding to me to stay somewhere and pay them part of the profits versus just doing it yourself. Ideally the funding company would offer a clear path to get guaranteed increased funding over time (and state up front what those increased funding metrics are and how you can achieve them to get the increased funding to $25,000, $50,000 and up.

    But make no mistake — in my opinion —even under those better scenarios (as well as the scenarios that are trailing Max drawdown based) any increase in funding down the road that you may receive is likely just coming from a risk reserve holdback on their portion of your profits that you produced and paid to them so essentially in many (if not all) cases you are the one who may be really funding any increases down the road that you may receive from the funding company as it is simply profits that you created from your trading that now you are getting a portion of back in the form of increased funding whereas if you were just trading from your own account you could just take your 70% to 80% of profits Off the top to live on and pay bills and then put the remaining 20% to 30% in your own risk reserve fund and every 3 months or so if you have been consistently profitable you could increase your account size by adding a portion of the funds funds from your risk reserve fund such as 50% and the remains 50% is left in the risk reserve fund and then it builds up again as you make more profits and then 3 months later ( if still consistently profitable those 3 months) then rinse and repeat
    Last edited: Jul 19, 2020