On my phone ATM, so short answers.
If the trailing drawdown is 3K and you made 3K of profits, you’re safe as long as you stay above 50K. You can’t drop below 50K and it won’t trail any higher.
Still a daily loss limit, though.
any views on Earn2trade's Gauntlet
- Thread starter padutrader
- Start date
On my phone ATM, so short answers.
If the trailing drawdown is 3K and you made 3K of profits, you’re safe as long as you stay above 50K. You can’t drop below 50K and it won’t trail any higher.
Still a daily loss limit, though.
That is not how a trailing drawdown works.
A 50000 account 10% trailing drawdown means your account at 45000 at the start, then your account goes up to 55000, your drawdown lifted to 49500(55000X0.9=49500), your account goes up to 57000, your drawdown max at 50000, never goes above it.(otherwise it would be 51300: 57000X0.9=51300).
Also to add on to this, different companies have different rules for the daily loss limit. I know OneUp simply rejects your trades for that day if you take a loss greater than the daily loss limit. But I have seen another one (I can't remember which one) that did not use a trailing drawdown, but if you hit the daily loss limit I believe your account is considered failed. So they vary in that rule I guess depending on whether they have a drawdown or just a loss limit or a combination.
K, that makes more sense.
https://www.earn2trade.com/gauntlet-mini#price-area
scroll down on the above site and you see the actual rules. In my case I had my $50,000 account to a little under $52,000 but I had a daily loss of $1108 and it caused a failed Guantlet. I knew the rule but I forgot to figure in commissions so I broke the rule. After my initial frustration I have no problem. That and "No trades between 3:10 PM Central time" and 5:00 PM Central Time, and no Trading on Holidays are the only rules. The daily drawdown is a good rule as it keeps a trader from going on tilt and trying to get the loss back quickly. Once you get above 52,000 the total drawdown extends to the flat 50,000 and is no longer subject to a $2,000 drawdown.
scroll down on the above site and you see the actual rules. In my case I had my $50,000 account to a little under $52,000 but I had a daily loss of $1108 and it caused a failed Guantlet. I knew the rule but I forgot to figure in commissions so I broke the rule. After my initial frustration I have no problem. That and "No trades between 3:10 PM Central time" and 5:00 PM Central Time, and no Trading on Holidays are the only rules. The daily drawdown is a good rule as it keeps a trader from going on tilt and trying to get the loss back quickly. Once you get above 52,000 the total drawdown extends to the flat 50,000 and is no longer subject to a $2,000 drawdown.
Did the account lock up during the day, or do they tell you you failed at the end of the day?
It gave me an instant message that I failed
And that's if the trade is still open and just dips below $1100?
-$1108 and you instantly failed. Yep, that's realistic on a 50K account.
Why don't these guys admit that you do not have 50K in the account? I swear to God there must be some law these guys are breaking by saying this stuff.
You know you CAN easily set rules on an account and let someone trade capital in this world right? It doesn't have to be total freedom to be legit. It doesn't have to be ridiculous or illegal just to say "be more strict with your trading, follow these rules or you don't get these funds". I don't know what the problem is tbh, these are very understandable limits for a good trader. They are not good for trading huge size recklessly.
They're not going to give you $50k cash for passing a $200 test, and let you blow the whole $50k over and over. Obviously they need to protect themselves by not letting random gamblers burn too much of the capital each time they pass an easy evaluation.