Alright, first changes to the "learn more" page today. I wrote a whole thing before noticing their blog post dated today that confirms these are in fact the adjustments: https://www.topsteptrader.com/blog/new-trading-combine-rules-more-funded-traders No more 45% profitable days; The P&L above $0 is now global, not for each instrument traded; Stops are no longer mandatory (for what that's worth); There are daily loss limits, but the weeklies seem to be gone from combines, only stayed in the Funded Trader Preparation; In the FTP, the "minimum of 10 days within 60 days" is gone, but this confuses me as this may mean that someone could be stuck in FTP for a long time. Overall, I see these as positive, though the combines are now decidedly non-refundable.
Pekelo criticized, TST listened, hurrah!!! Rules changed: "REMOVED: * Always implement stops with an open position * Achieve at least 45% Profitable Days * Achieve an Average Net P&L greater than $0 for each product traded" The 2nd and 3rd were always BS rules, I have bitched about them for years. I think the use a stop loss all the time was actually a good rule, and they were defending it to the end, now removed....Consistency????
Well, after thinking about it, every rule is worth as much as it can not be over ridden. At first sight having a stop loss all the time makes sense, but it has to be a sensible stop loss. Since the "sensible stop loss" (meaning the stop loss takes you out fairly quickly, after a not too big move) can be over ridden easily by using a HUGE stop loss, just plainly demanding to use a stop loss is worthless. I can always use a 100 ES pts stop loss that won't help me much, but I satisfy the rules... So I guess overall it is better to get ride off the rule and just let trading Darwinism thin the herd out...
Interesting ... and good to see. Those three are removed not only from the Combines, but from the Funded Trader Preparation and Funded Account rules, too. And from those, the Weekly Loss Limit and Trailing Maximum Drawdown have also been removed after 10 days.
After listening to the interview Friday, there is one caveat to this: any instrument for which you weren't above $0 in the combine, you cannot trade in your LTP. After you're funded 10+ days though, you're free to add any instrument you like (including any not touched at all in the combine).
The rule changes are good, as expected, since they have often made the rules more favorable to the trader. One aspect which they have yet to change is all of the times where you cannot have an ES trade during "major economic releases." However, that includes nineteen different reports, many of which I would not consider as "major." I understand for FOMC and the jobs number it's good to be flat, but for many of them, the slippage is minimal. With CL, there is only one report: inventory numbers, once a week. Very simple. I'll bet they would have more traders taking combines with ES if they removed a lot of these "major economic releases" which in theory COULD move markets, but not as much as FOMC. Here's the link for the events where you can't have an open position: https://topsteptrader.desk.com/cust...es/1950863-economic-release-calendar?t=558735
Not having 45% profitable days will allow a combine trader to pass in one day if he/she gets a big win JUST ONCE. Then you can potentially scalp a one minute bar in/out just to trade the remaining # of days. Although this meets the results of a combine, it will tempt more traders to go "all in" which violates the scale up rules for the LIVE account. The second bullet is common sense. If you pass the combine with crude and you took three days of minimal losses on YM, it shouldn't matter. Regarding stops, it's a given they would still want everyone to use mental stops that are implemented based on one's trading plan to prevent a "blow up" in one day. I think it just removes the burden for those who are reluctant to use hard stops immediately after entry.
This is a good point to bring up, but the 45% was still ridiculous. It should have been 30% or less or simply they could have said: we don't want to see one day wonders... Also what if my high percentage probability set up comes up only once a week? Then my big win % would be 20%, but still perfectly acceptable as a legit strategy...
Sure, but in theory one could now have one very big, profitable day with a trade open for many hours, and 9 days of scalp-trades each losing a tick or two, and still qualify. My own guess is that that would be noticed when the Combine is analyzed, and that such a trader might be kept in the Funded Trader Preparation for longer, as TST might (very reasonably) want to be sure that all the profit wasn't from pure luck, and that the person does actually know "how to trade".