It is because they do not give you $50K, period. That's the PROBLEM! It's a lie!
any views on Earn2trade's Gauntlet
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It is because they do not give you $50K, period. That's the PROBLEM! It's a lie!
So who cares if they don't? You get to trade 1-6 full contracts (normally $850 daytrade margin, up to ~$20-23k margin in volatile markets) with no restriction besides these rules. So including a $2500 drawdown, you're using something like $1700 + $2500 at first (2 contracts), but you can trade with no limitations when other brokers may not let you trade a contract at all under the full price (such as when the Covid 2020 market correction came). It's such a good deal I still don't know why the evaluations are this easy.
ONE contract only on FULL EXCHANGE MARGIN at $50K. That's IT! THAT should be the limit!
Let me ask you a question...Do any of these firms tell you whether you are trading on exchange minimums, or day-trade discounts by the supporting broker?
The exchange is the exchange is the exchange. There's no getting around it! So do prop firms have the gumption to pony up the money you are not providing with their $200 per month combine fee?
This is serious money we are talking about. $17,000 is the performance bond on a single NQ. So you are going to allow some n00b to attempt 6 contracts on a $50K account? Well, the prop firm will need to put up a hell of a lot of capital to support that position. That's like $100,000+ in cash needed!
So why tempt clients with unrealistic scenarios? NO! You cannot successfully trade 6 contracts of NQ with $50K! NOT THESE DAYS WHEN THE NQ RANGES 200-400 points per day. You will FAIL! At most brokers, you would not even be able to initiate that position in the first place! It's FAKE!
No they do not tell me if it's day-trade discounts, and it very likely is. They make money off of people failing as well as profitable traders profiting. That is their business model, like it or not, and tbh I don't really care personally whether they are cackling and thinking "oh boy another trader is signing up!" As long as they pay when I withdraw, I'm good with their model since I see it as an opportunity for me and nothing else.
But you are right, this is BIG money, and the scenario is unrealistic for the average person on this forum or who is new to trading to ever succeed with it on the first shot. It is reckless and many will never realize where they are going wrong because it takes a lot of hours and education. But imagine you're like me, you have the education and the hours, but not the capital (or don't want to accept the loans people offer you just yet). It doesn't matter to me if the account is advertised as "$50k" and only has $12k. If it allows me to trade full size, it's the same to me. I get to withdraw from profits, not from initial balance. So even if it said $500k, it would not change a thing for my trading. Futures daytrading for me, when you have the funds to cover the size, is calculated by contract size, not invested capital. I don't think "I used $850 on this trade to make $2000." I just say "I made $2000/100 points on 1 contract".
But anyway while it is reckless and maybe irresponsible to advertise this to the general public, this is the same reason why I (and surely many other good traders) find it to be a gold mine for us to take advantage of. We completely remove our risk (minus the $150 or whatever fee), trade what we hope is a good strategy, and get to withdraw profits immediately. For a long time this was not possible. Completely nullify the risk of losing our own personal account? Even for 60/40 it may be a great deal to many traders. For now I stand by it as a great opportunity for people with low personal funds, and even as a practice tool for getting their discipline down like I did.
So you realize it, you see the problem.
It is not how many contracts you can trade that restrict you, it is your drawdown restrict you.You want the ability to trade huge contracts? There are forex brokers who offer 1:1000 leverage, but if you trade maximum leverage they offer, you blow up your account in no time.
FTMO and MFF offer 1:100 leverage. I have seen some traders trading 400 contacts and pass challenge in 10 minutes.So what?Those who post their trades to show off they can pass in 10 minutes only expose themselves as gamblers and losers.
Because for every challenge they pass, they blow up their accounts 20 times.At the end they are losers.
If you do not want to blow up your account, you need to lower your leverage,to the level that you can survive. Drawdown is where you consider to adjust your leverage, so no matters what happen, you don't go below drawdown.Just like in your own live account, you do not go below your account balance.
Any experienced traders will be able to see drawdown is the funds prop firms offer, not account size.Your leverage is restricted by drawdown, not by account size.Anyone who doesn't trade that way is a gambler and loser.
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They actually are doing a 50% off sale on ALL accounts until the end of the year now, announced it a few days ago. So even better.
And I agree with all your points. Earn2Trade is one of the better options.
I think what you just said is misleading.
There are people who don't understand drawdown is the funds prop firms offer.
But you should not .
So you are intentionally misleading people.
The funds prop firms offer is actually the amount of drawdown, do you agree or you don't agree? Give your answer on this . I have no problem with you if you want to promote prop firms, but just don't make false statement.
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Good Points Gasparov, They have a daily loss rule and I exceeded it. End of story. So I can try again very cheap with their year end special. And I can deduct in on US Schedule C because I am registered with the IRS as Trader Status. Show zero income but deduct all trading related expenses.
Actually the split between E2T and the Trader is 80% to the Trader. the 60/40 is how you are taxed. 60% long Term gains and 40% short Term Gains. This tax advantage makes E2T the only viable option in this arena.
As far as all the talk about "Is it really a $50,000 account. It does not matter one bit. A sensible trader is going trade one contract and only one contract until a cushion is built up to insure that drawdown is no longer an issue. For me I think I would want a $20,000 drawdown cushion before I increased to two contracts. $30,000 for 3 contracts etc. Then it is up to Et2 to make sure there is adequate margin money is in the account to support 3 contacts. For TOS that would be over $70,000. For AMP $3,000. So who knows what the E2T requires.
Once the ball got really rolling I will only leave $5,000 per contract of my money in the the account for drawdown. If that does not work for E2T then it is goodbye.