SO correct me and simplify if I am wrong please SO on a 100K ( Notional) account trader can go up to 98,00 Net liquidity value Correct? Then If a trader makes 10,000 so account balance is 110,000 and then for his account to close can one go down to A)98,000 or only to B) 107,000 .. If it is B) then TST is not taking any risk at all beyond the first 2,000! What is it exactly?
Both your examples are wrong, you have a 3K trailing draw down, which means you can go down to 97K before you lose the account, assuming you haven't made a profit first. If you make 2K profit and your balance is 102K your max draw down moves up to 99K. If you make 3K or more your max draw down is 100K. You just can't lose more than the daily loss limit at that point in 1 day.
No it is not. It means you cannot lose more than your daily loss limit in one given day. So if your daily loss limit is $3K you can lose $2,9K a day as many times as you want, at least untill you reach your initial starting balance. So if he made $10K in profits he can have 3 losing day's of $2,9K in a row and then still has $1,3K left before he losses his account.
Which makes one wonder. If initially you were allowed to draw down to 98K, then how come after reaching 100K, you are not allowed back down to the 98K limit? It is set up to make you fail so you have to pay a fee to do nothing but reset an arbitrary timer.
Huh? Sizing up is easy. On a 100K account they let you trade 10 contracts of the futures of your choice IIRC. A couple of ticks in there, and BAM! Instant profit!