Actually that is where it makes the most sense. If you reset the cheapest Combine, you actually pay $5 more, than starting a new Combine. But for the 150K Combine that is only 26.6% of the initial cost, you get the best return for your money there. Also it is important to realize WHEN in the month you blow your Combine, when calculating if a restart is worth it. If you blow the 150K in 2 weeks, a restart is cheap, you get another 2 weeks for only $100. But if you blow the 30K after 3 weeks ($50/week) paying a restart for the last week is $100/week, you are better off starting a new Combine... Nobody does math anymore...
Since most people apparently are challenged by math, and April 15 is only a month away, let me help those, who think using TST is a good insurance against a market wipeout. It is an insurance alright, but with a cost, since no insurance is free. This particular fee is called federal income tax (for US only): 1. Trader trades futures for himself, his income is in the 15% bracket, pays an effective rate of 6% because of the 40/60 tax advantage. 2. TST trader pays 20% to TST then pays 15% because he is in that bracket and can't claim trader status. His effective tax rate is 32%. (OK, I am not accounting here for the first 5K not included in the 20%, but the rate on that is still 15%) So it is paying 6% in taxes vs. 32%. Thus the insurance of playing with other people's money costs 1/4 of your profits. And that is why no sane profitable US trader should stay with TST for years...
And with this post, you seem to have taken "missing the point" to a whole new, abstruse level. Nobody (least of all TST) is suggesting that anyone should stay with them for "years". That isn't the point of their facilities, at all. They're simply a way of getting started for people who have some trading skills but inadequate capital to trade futures on their own account.
I was never a fan of the "$100 reset fee" as it puts a hefty premium charge on the monthly combine fee. It's almost like buying an option with time decay. Instead, if a person "blows up" the combine within the month then they can still continue trading on the combine account, however the trades won't be reviewed. Treat the combine account as a practice sim without any extra fees, and regain the discipline that was lost during the combine. Since the combines are now continuous, the trader would simply start a new combine (and a new combine fee) the following month, and thus avoid the "mulligan fee."
Ok I see the logic in determining if there's value in the reset fee for the 100k/150k, since those are the ones with the heftiest price. So in this case a trader may choose to pay it, provided he's allocating enough time for the "premium decay" of the option, but the math does not make sense for the less expensive combines.
We have to give it to them, it is genius marketing though. Who hasn't done a trade just to regret it a few minutes later, but already too late? That is when Mr. Mulligan comes in with his smile and asks you: "Would you like a quick refill? It is only 100 bucks." And of course we would buy it, as nothing happened.... Mulligan's rules for the weak and unsteady: 1. Don't refill for 10K and 30K, just start a new Combine. 2. 50K refill only if blown away in the first 10 days. 3. 100K and 150K, refill away until you get the job done! You are already wasting money, what is 100 bucks to you?
Man you are sooo negative. The reset just gives you an extra chance whilst learning. Consider what a reset would mean for a newb in their own account. They will have taken a big hit of real money and be emotionally damaged by it. The reset allows you to try again. People shouldnt be taking combines until they are ready, thats what the free demo account is for. no resets during FTP or live account only in combine. cheer up you miserable sod.
Your math is wrong. Since you are a non employee of TST, you will also owe an additional 15.3% self employment tax since you are issued a 1099
All the reset does it make it less realistic and isn't that your argument that the combine holds you accountable instead of just free sim trading on your own ? Also it makes the trader more inclined to fail since the rules are not the same in ftp or live account so why build up their confidence with this option only to kick them in the face on the next levels ? One of my biggest complaints is there is no consistency with tst. The rules change constantly so how do you adjust when you never know what they will be next week or month ? Does anyone know if live traders are grandfathered in under the rules they passed by ? Such as the new rule of no trading 1 minute after Eco numbers when it used to be just 1 minute before ?