TopstepTrader Q & A

Discussion in 'Prop Firms' started by Topstep, Jan 4, 2017.

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  1. Naboli

    Naboli

    I am totally unconcerned with the money spent. It is a small amount to me and I view it as a cost of tuition.

    They do have to risk something. When a trader goes live, they are given risk capital to trade with. If they lose it, the firm eats it. Now that I think about it, I have cost them money on balance. The money I lost in my live accounts is more than I have paid in fees.

    Try using some commas. You can find the key on the lower right hand side of your keyboard.
     
    #291     Jul 12, 2018
    VPhantom likes this.
  2. DepthTrade

    DepthTrade

    "Prove you can profit and manage risk, and earn up to $500,000 in real forex buying power with 100:1 leverage."
    This is from the front page of Topstepfx. Am I correct in thinking this means an account of $5,000? If I'm trading the supposed $500k account, are the targets and stops percentages correlated to a 5k account or 500k. This is a massive difference and a bit deceiving. Holding 5 lots in a 500k account would be zero leverage, in a 5k account a 1% using 5 lots would kill the entire account. Hitting the stop in a 500k account would be 0.66%, in a 5k account it would be -66%. None of this makes much sense. The opening sentence to me says it's actually a 5k account, so the acceptable stoploss is -66%. If not, how could it be otherwise is you state the buying power using 100:1 is 500K.


    Account Parameters
    Step 1
    Prove Profitability
    Step 2
    Manage Risk

    Targets:

    Profit Target
    $6,650
    $5,000
    Minimum trades (notional value)
    $8 million
    $8 million
    Rules:
    Maximum Position Size (cumulative, all open trades)
    5 Lots
    5 Lots
    Weekly Loss Limit
    $3,300
    $1,650
    Account Loss Limit
    $3,300
    $3,300
    All positions closed by 3:45 PM CT every Friday
     
    #292     Jul 14, 2018
  3. Since you both ended up losing money, how is this better than paper trading until you are capable of generating net profitability at least theoretically? Would that not be the point at which you should attempt the combine, if at all? (With an emphasis on the "if at all.")

    Just saying.
     
    Last edited: Jul 14, 2018
    #293     Jul 14, 2018
  4. Naboli

    Naboli

    Someone recently asked me about whether I think they should try the combine at Topstep. I told them that they should not unless they have paper traded and proved that they have something that works. Only then would it be worth it to pay up and potentially get a live account. So I totally understand what you are saying. The combine is not a place to "give trading a try." It is a place to demonstrate that your strategy is always working.

    Then I think it depends on the person. If you have something that works but can't fund it yourself, then a place like Topstep might be a good bet.
     
    #294     Jul 15, 2018
    Xela likes this.
  5. Xela

    Xela


    This seems to be a point on which both enthusiasts and detractors of TST are agreed.

    Though I have no connection with them and have never done a Combine myself (sadly for me, they didn't exist when I was starting out, otherwise I think I probably would have done so), I suppose I admit to being an "enthusiast" (mostly because a couple of my friends have very successfully started out on their funded trading careers through TST, earning a lot of money in the process), and even I completely agree that it would probably be unwise, and unnecessary, to pay for a Combine before testing it out on your own, on a demo account, and feeling pretty confident that you can pass it. Unless the money really doesn't matter at all. :)
     
    #295     Jul 15, 2018
    Lukas V likes this.
  6. traderjo

    traderjo

    Good point. FF... one can try demo accounts from many brokers , no big deal...but people won't listen. the carrot of "get funded and get in to prop game easily" is too attractive, + one clever thing these so called props do is attache some sort of "education" to the Test fees and then it becomes difficult to argue ...these businesses thrive on such "clients". Another thing is human psychology, Many wont complain about $200-500 and such businesses thrive on such "clients"


    Pauchaney:
    You have banged the nail on it's head, "Funded a/c size" 5K with 1:100 Leverage should not be advertised as 500K account that is deceptive, but average jo does not dig that deep before becoming a client
    Here is a simple example of a business model
    I will charge $500 education fee
    - They will have to do a 1 month sim ( although this is just a gimick as you will see in the following calculation I can actually fund anybody who joins,
    - Those whoa fail can take another "My test" for a discount price of $250
    - Those who pass "my test" will be funded to $125000 ( I won;t tell them that it is notional)
    Rules:
    Can trade only 1 ES contract
    Day trade only
    Max draw down = $500
    ( You see day trading margin for 1ES is only around $500 so "My firm" wont be risking anything + I will be pocketing the $500 fee from those who dont pass "My test".

    Any way,I have said enough , there are enough suckers for such things, may be I should really start such a business LOL
     
    #296     Jul 15, 2018
  7. Topstep

    Topstep

    Sorry that we confused you with the wording there, @paulchaney. You are correct in that the actual capital is a $5,000 trading account. We reference buying power because, by experience, that's what most traders want to know - what would be my maximum buying power.

    As it relates to leverage, if you choose the 500K account, you can trade 5 lots throughout the Trading Combine - so there's not any change in leverage, regardless of if your balance moves higher or lower.

    When in the Funded Account, you can always trade as much as 100:1 leverage, starting with $5,000 balance. As your balance moves higher and lower, you will earn more or less buying power.

    Hope this clarified things for you.
     
    #297     Jul 17, 2018
    VPhantom and Lukas V like this.
  8. DepthTrade

    DepthTrade

    No, it still doesn't make sense, you guys expect someone to increase an account 160% from $2000 ($2600 profit) to $4600 then you'll fund them with an account with 2k in it? On top of that, you provide "performance coaching". Does that include teaching that a -65% ($1300 loss limit) draw down is acceptable?

    Account Parameters
    Step 1
    Prove Profitability
    Step 2
    Manage Risk

    Targets:
    Profit Target
    $2,650
    $2,000
    Minimum trades (notional value)
    $3.5 million
    $3.5 million
    Rules:
    Maximum Position Size (cumulative, all open trades)
    2 Lots
    2 Lots
    Weekly Loss Limit
    $1,300
    $650
    Account Loss Limit
    $1,300
    $1,300
    All positions closed by 3:45 PM CT every Friday


    No positions open during major economic events
     
    #298     Jul 25, 2018
  9. volente_00

    volente_00

    Will someone explain to me how having the ability to pay for resets is beneficial to real life trading ?

    Isn't the whole point of the combine to make one accountable versus just trading free sim?

    If this doesn't make your bullshit meter scream then you must be blind


    I just lost 25k on a 100 lot
    No problems buddy, just pay $195 and all your lost money gets returned to you

    :confused:
     
    #299     Aug 2, 2018
  10. traderjo

    traderjo

    Good observation, but people dont ask such questions because it is is only $195.. time and again people are asking what the real motive of such a business is and they get told off for being negative etc... this is the new frontier of fringe Security business, legal sure, ethical .. h....m
    Not regulated
    No security exams required
    As you pointed out "No problems buddy, just pay $195 and again and again and again ....we are just bringing trading to the masses! what a noble cause :sneaky::rolleyes::(:banghead::vomit:
     
    #300     Aug 6, 2018
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