Wait a minute. I thought the daily loss limit = weekly loss limit = $3000. So, let's say you have been profitable all week(for sakes of argument net up $3K to make the math easy). Then on Thursday, you are down $3K? Does that mean you or can not trade on Friday? Also, you can trade as many different products that are available as you want?
No. My understanding, from your example, you would have to lose 6k to hit the weekly limit. The weekly limit starts from zero. Now you have a trailing loss limit, whatever amount that is. But your weekly limit is really a weekly drawdown limit.
Got it. Thanks Maverick. Also, back to this 10 days deal. Let's say you hit the profit target in 5 days(arbitrary example). You still have to trade the remaining 5 days. What's to stop a guy from hitting target in 5 days using max position size of 15 lots and trading superconservatively the next 5 days(using 1 lots) to preserve this profits. Or any combinations of days. That's only natural.
This has been discussed repeatedly in this thread, however, just for clarification: The $150k combine account does NOT have a weekly loss limit, only a daily loss limit and a maximum allowable drawdown, which is a trailing number based on the CLOSING balance of each day. Only the Jr Trader account has the weekly loss limit, with the exception of the 30k account. If you are down "$3k in a day" then you fail the combine, since that is the maximum loss allowed for ONE day, and therefore you could still trade the rest of the week, but the combine will not be evaluated or reviewed for funding. If say you are up $3k in the combine in the first three days, and then lose $4,700 over the next three days, then you won't qualify for funding either, since the "maximum allowable drawdown" would be hit, even though your balance would NOT be minus $4,500 below the zero balance, it would be only minus $1,700 in the red. Shiko2000 posted his stats of his prior 30k combine. Go back in the thread, and you'll see that he was UP in the combine, then DOWN in the combine, only slightly below the zero balance, and then finished UP in the combine, meeting the profit objective, meeting the 55% or greater winning day metric, and never once hitting the max daily stop loss. HOWEVER, since the MAXIMUM allowable drawdown of $1,500 was breached, his combine was not eligible for review. Getting back to the $150k account, the Jr. Trader account (live funded account) has a $3,000 daily loss limit AND a $3,000 weekly loss limit. It also has a maximum allowable drawdown of $4,500. Commodity Trader pointed out that since you now have a WEEKLY loss limit in addition to the daily loss limit, you can't start swinging big size in the Jr Trader account, given that the weekly loss limit would likely get hit, since it is just a daily loss limit divided by 5 ($3,000/5= $600, this is "TRUE" loss limit, if you plan on trading each day of the week). As I posted earlier, you have to incorporate the daily loss limit AND the maximum allowable loss limit for each combine, and then trade accordingly. The forumula is as follows: Maximum Allowable Drawdown/Maximum Allowable Losing Days = TRUE loss limit Once you are past the 55% winning day threshold, then the "TRUE" loss limit will increase, since you can withstand a greater loss and still pass the combine , but you still have to keep it well below the DAILY loss limit. Tight leash? Yes. That's why the 30k combine is the only combine that makes sense based on their current rules. Even though the stop is tighter and the lot sizes are smaller, it at least has the SAME metrics in the combine and the Jr Trader funded account, especially when you take the 20 day combine, which gives you a greater time limit.
Yes, you got it. The value of the TST program in the front end is to build confidence and discipline in your trading plan, and the value of the back end is to trade size. You can push "1 lots until you build up a cushion" in your own AMP account, you don't need to pay anyone 35% on your first 30k of profits and then 20% on every dime thereafter, AND pay more in commission/exchange fees, unless there is value in the back end, which is size. If you can't eventually trade size, then you are better off trading on your own and keeping 100% of the profits, as long as you take the value of the program (confidence and discipline of trading in a structured environment) and incorporate it to your own retail account.
ScalperJoe, let me give you some credit. It's nice to see every blue moon somebody take the time do work the math and do some real hard statistical analysis. Many of the guys here who either are not capable of doing the math, or worst, just lazy, only perpetuate why so many guys fail. Yes, I'm talking about the Pekelo's of the world. But I tip my hat to you, good job.
Agree with ScalperJoe. Once I learned of margin requirements to trade futures I did my math. The problem is I do not know what is in the end of the rainbow. Is there those big lots or no if I produce consistently with low risk and good discipline.. In any case some cushion is necessary but if all trade size increase comes from trader built cushion only.... it would only means that 20-40% split is just additional spread. In this case trader would really be better trading own account. Less spread 100% to trader and there is chance to gradually build account to trade large sizes. Also, it is possible to get real investors with good track record. I am still working to get funded and I wonder is there any funded trader who trade size and did not have to build all the cushion to get there.
However, I would not advice new trader to get into live futures trading without going through TST Combines. Were I to open live account I would at least lose some $20K within one year based upon my 8 Combines before November 2013. There is absolute value in TST Combines but I am looking for long term career option. I want to get funded, build cushion and then see how things will go.
Well, thanks for the credit. I learned the hard way just like Shiko2000 and realized the difference and then switched from the 50k to the 30k. And I don't see any flaws with Pekelo's math skills, but to each his own.
None of Pekelo's math is based on reality, it's based on conspiracy. There is a difference. I think the issue with him is he does not trade for a living and he simply does not understand how flawed a lot of his logic is. There is no need to bed pro-TST or anti-TST, one can be agnostic and simply look at the data without emotion and use logic and reason to weigh what is being offered. Pekelo never did that.