The drawdown when the overnight margin kicks in, if the trade is negative. Sure, it is fun to hold through the ON session when in profit. But if flat or negative, that -$20K +-$17k margin requirement on 1 contract is -$37K drawdown. You have exceeded the $1500 whatever drawdown limit. Liquidated, time for reset.
Choice between Topstep and Oneup ?
- Thread starter Saxio
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The drawdown when the overnight margin kicks in, if the trade is negative. Sure, it is fun to hold through the ON session when in profit. But if flat or negative, that -$20K +-$17k margin requirement on 1 contract is -$37K drawdown. You have exceeded the $1500 whatever drawdown limit. Liquidated, time for reset.
What -$20K are you talking about?
The margin requirement for 1 overnight ES contract is $12100. So even if the trade is negative $2000, that still leaves $5900 available margin on the table, assuming LeeLoo only allows the previous profit made as overnight margin.
I simply flipped the script on you, from this line...
"...Why would it be a bad idea to hold 1 ES contract or 10 MES contracts overnight when a traders has made $20K in profits?..."
As for the profits countering the drawdown, from what I have seen, they do not. You make $20K in unrealized profits? That's fine. But the overnight margin exceeds the drawdown allowed.
Look, that's as far as I am allowed to go in talking about Prop Firms, since some of them are sponsors here. I learned my lesson on the phone with Baron about this. (Twice!) Here endeth my participation.
I simply flipped the script on you, from this line...
"...Why would it be a bad idea to hold 1 ES contract or 10 MES contracts overnight when a traders has made $20K in profits?..."
As for the profits countering the drawdown, from what I have seen, they do not. You make $20K in unrealized profits? That's fine. But the overnight margin exceeds the drawdown allowed.
Look, that's as far as I am allowed to go in talking about Prop Firms, since some of them are sponsors here. I learned my lesson on the phone with Baron about this. (Twice!) Here endeth my participation.
There is no maximum draw down allowed with LeeLoo.
Your initial starting balance +$100 is the draw down limit.
So, if you have $20K in profits, making the total balance of the account $120K if you start with a $100K account. If i go below $100100 i lose the account. No other draw down rules.
So, lets assume LeeLoo only allows profit made as overnight margin, that would mean there is plenty of margin to hold 1 ES contact overnight.
No idea why you assumed those $20K i mentioned would be unrealised ...? Made profits are not unrealised profits in my book.
I have absolutely no problem with discussing the pros and cons of certain companies, but you have to make sure whatever you are saying is correct ... Make sure you understand the rules/company before involving in a discussion about their rules and how they operate.
"Your initial starting balance +$100 is the draw down limit"
What happens if your first and second trade go bad and you lose the $100? Is the account closed?
Of course not. I said that because in the example we where talking about the trader in the example would have had $20K in profits, so then the draw down limit is starting balance + $100.
When you just start the rules depend on which path you choose (accelerator or investor account) and if you choose the investor the draw down depends on the evaluation account you took.
All information is clearly explained here:
https://support.leelootrading.com/kb/root.aspx