any views on Earn2trade's Gauntlet

[Laissez Faire]

When does it end?

To be fair - E2T’s drawdown stops trailing after your profits exceed the initial trailing drawdown.

With some other firms that is not the case and obviously for a reason.

 

[nooby_mcnoob]

Well, how CAN you grow your account if they terminate you after a period of sideways action? EVERY firm goes through that.

Let's take it one step further in an alternate universe...

Day 5. Make $2K. EOD balance $53.5K Trailing drawdown = $2,500

Day 6. Make $20K. EOD balance 73.5K. Trailing drawdown = $2,500

Day 7. Lose $501. EOD balance. 72.999K. Trailing drawdown = $3,001

Game over while yer up 23 Grand over original balance!

When does it end?

haha indeed

 

[Gasparov]

E2T currently has a $99 special on their mini-Gauntlet on their $50,000 account. I am thinking about trying it. I took it a couple of months ago and failed even though my account was in profitable status and had been since the very first trade. Zero drawdown below the 50K. I was cutting the daily drawdown too close and went over by 1 tick. I protested because I was profitable but rules are rules.

Currently have the Covid but should be feeling fit enough to try it by the Dec 31 special deadline.

I think the mini-gauntlet is their only worthwhile product. I have no idea why anyone would do their normal one.

This is the VERY HUGE difference with E2Trade. The 60/40 LT/ST tax rates are passed onto the trader. On the others you are a paid consultant and are taxed as an independent contractor status which means you pay ordinary income tax on ALL your gains plus 15.3% self employment tax. So, E2T is the only choice that makes financial sense.

Isn't futures trading always subject to the 60/40 tax? Even if they don't specify at one of these companies, wouldn't you still report your income as you normally would as a daytrader?

 

[Laissez Faire]

That statement was just about if you are already a pro, not if you are learning.

A 3K drawdown on a 50K account doesn’t seem like much to me as a day trader of futures - unless you utilize very low leverage.

 

[nooby_mcnoob]

A 3K drawdown on a 50K account doesn’t seem like much to me as a day trader of futures - unless you utilize very low leverage.

I think for those gauntlet accounts, you want low leverage. I only add obscene leverage when I'm right anyway.

 

[Overnight]

To be fair - E2T’s drawdown stops trailing after your profits exceed the initial trailing drawdown...

K, so you are saying that on a $50K account, after you earn $3K, the limit to fail on the account is if the balance drops to $52,999?

If so...WHY? What is it about that arbitrary number? Why is it not 1K, or 10K?

 

[Gasparov]

Of COURSE they are not in your favor! Max trailing drawdown = $3K with a $50K starting balance.

Day 1. Make $1K. EOD balance $51K.

Day 2. Lose $500. EOD balance $50.5K Trailing drawdown = $500

Day 3. Make $3K. EOD balance $53.5K. Trailing drawdown = $500

Day 4. Lose $2K. EOD balance $51.5K. Trailing drawdown = $2,500

Day 5. Make $2K. EOD balance $53.5K Trailing drawdown = $2,500

Day 6. Lose $501. EOD balance $52.999K Trailing drawdown = $3,001.

GAME OVER, MAN. Even though the account is 2500 bux above starting balance, the account is closed, because somehow you are a great risk to the funding company. It's BS! That's not how the REAL WORLD WORKS!

That's not how it works here either. The drawdown never goes over $50000. So you would only fail by dropping below $50000.

You can make $25000 on a $50k account and your drawdown remains at $50000, making it pretty much impossible to ever blow your account if you know how to trade.

 

[Laissez Faire]

I think for those gauntlet accounts, you want low leverage. I only add obscene leverage when I'm right anyway.

Okay. So you’re specifically talking about these programs. Wasn’t sure. If yes, I agree. Low leverage is the way to go.

 

[Overnight]

That's not how it works here either. The drawdown never goes over $50000. So you would only fail by dropping below $50000...

So on a $50K account, you are saying that you fail if your account balance reaches $49,999. That means there is NO drawdown allowed, period.

 

[Gasparov]

So on a $50K account, you are saying that you fail if your account balance reaches $49,999. That means there is NO drawdown allowed, period.

This is how it goes, at oneuptrader at least. the numbers may vary slightly based on the company. Some do not have this trailing drawdown, I think maybe most do, but they have some variation of this.

Day 1: $50k balance, Drawdown $47500. Profit 1k, Drawdown goes up 1k.
Day 2: $51k balance, Drawdown now $48500. Lose $500. Drawdown doesn't move.
Day 3: $50500 balance, Drawdown still $48500. Profit 2k. Total profit is +$2.5k, so drawdown moves up $1.5k to equal $2.5k above initial of $47500 = $50k.
Day 4: $52500 balance, Drawdown $50k. Lose $1k. Drawdown doesn't move.
Day 5: $51500 balance, Drawdown still $50k. Make $5k.
Day 6: $56500 balance, Drawdown stays $50k forever, until you go below $50k (you shouldn't anyway but that's the only way you fail).

Get it?

However, when you withdraw your $3.5k one day and your account goes down to $53000, you have to be aware your drawdown is still $50k. It will remain there for life.


For what it's worth Earn2trade has the same system. I haven't looked at all of them in depth yet but I will soon.

"This continues until your trailing drawdown reaches the starting balance of your account, or in this case $25,000.00, at which point the drawdown will no longer trail above $25,000.00."