No more Live Trailing Drawdown on Earn2Trade?
- Thread starter legionx
- Start date
It is completely true, Legionx!
Any new purchase or reset From July 1st onwards will have End Of Day Drawdown, you can get more information on the following link and let me know if you have questions on it:
https://help.earn2trade.com/en/articles/5372687-how-does-the-drawdown-work-on-the-gauntlet-mini
well I am not that thrilled if that’s the case. Any evidence of that would be helpful thank you.
There really shouldn’t be a trailing drawdown whether it’s calculated live intraday (intra-session),or at the end of the day—-either way it’s BS in my opinion. In my opinion the only way drawdown should be calculated is a fixed daily loss drawdown (fixed amt below the zero line) for a daily loss limit and a fixed max loss drawdown (fixed total net loss limit below zero line)
This is how it should be (fixed drawdown)
But this is not how Earn2Trade does it (in my opinion)
Even with their “new” end of day trailing program
There should be only 2 figures
1) Max Daily loss limit - which should just be a fixed max drawdown below the zero line…period and that resets each 24 hours with the new trading session. Under a fixed drawdown scenario that is below the zero line - The trader can accumulate profits during the session and increase their intraday-session trading cushion which greatly enhances traders ability to create even more profits within same session. Additionally- the trader is not penalized at the end of the session like they would be with an end of session trailing drawdown- meaning with a fixed drawdown that resets every 24 hours the trader has a new $5,000 fixed drawdown below zero line starting next session ( and trader can withdraw profits from prior session with no change to his forward drawdown limit) whereas with a trailing drawdown —even the “new one” from E2T that is calculated at end of session — if you withdraw all profits you made then you no longer have full drawdown cushion—-whereas with fixed max drawdown that is calculated below the zero line and reset every 24 hours regardless of your amount of profit withdrawals
2) Max Total Trading loss limit. This is a total net loss limit below the zero line.
So for example
#1 - $5,000 daily loss limit
#2 -$10,000 max loss limit
the $5,000 daily loss limit should be a fixed max drawdown which is only calculated on losses below the zero line. The daily loss limit resets back to $5,000 each 24 hours (so for example if Globex opens at 6pm EST and if Globex is considered the start of a new 24 hour day then at 6pm EST Monday you have $5,000 daily loss limit (meaning you fail if your balance goes minus $5,000 or more below $0 line) so as an example if you are up $3,000 in the trading session then would have to lose $8,000 or more (not $5,000) to reach minus $5,000 below $0
—-or looked at another way— now you have an $8,000 trading cushion for the remainder of that session. Let’s say that’s where the session ends. (With you up $3,000). Then staring with the next session Tuesday 6pm EST Globex - your daily loss limit now resets to $5,000 again - (meaning $5,000 below the $0 line)
but your total max loss limit is now $13,000
$10,000 plus the $3,000 profits you made in session 1)
make another $4,000 in session 2 and your intra-session day loss limit is now $9,000
Now let’s say you lose all $4,000 in profits from session 2 right before the end if session 2 so you end that session at breakeven (flat—$0)
starting on session 3 Wednesday 6pm EST Globex your daily loss limit is $5,000 (meaning $5,000 below the $0 line for that session)
and your max total loss limit is still $13,000
This is how it should be
But this is not how Earn2Trade does it (in my opinion)
Even with their “new” program
This is how it should be (fixed drawdown)
But this is not how Earn2Trade does it (in my opinion)
Even with their “new” end of day trailing program
There should be only 2 figures
1) Max Daily loss limit - which should just be a fixed max drawdown below the zero line…period and that resets each 24 hours with the new trading session. Under a fixed drawdown scenario that is below the zero line - The trader can accumulate profits during the session and increase their intraday-session trading cushion which greatly enhances traders ability to create even more profits within same session. Additionally- the trader is not penalized at the end of the session like they would be with an end of session trailing drawdown- meaning with a fixed drawdown that resets every 24 hours the trader has a new $5,000 fixed drawdown below zero line starting next session ( and trader can withdraw profits from prior session with no change to his forward drawdown limit) whereas with a trailing drawdown —even the “new one” from E2T that is calculated at end of session — if you withdraw all profits you made then you no longer have full drawdown cushion—-whereas with fixed max drawdown that is calculated below the zero line and reset every 24 hours regardless of your amount of profit withdrawals
2) Max Total Trading loss limit. This is a total net loss limit below the zero line.
So for example
#1 - $5,000 daily loss limit
#2 -$10,000 max loss limit
the $5,000 daily loss limit should be a fixed max drawdown which is only calculated on losses below the zero line. The daily loss limit resets back to $5,000 each 24 hours (so for example if Globex opens at 6pm EST and if Globex is considered the start of a new 24 hour day then at 6pm EST Monday you have $5,000 daily loss limit (meaning you fail if your balance goes minus $5,000 or more below $0 line) so as an example if you are up $3,000 in the trading session then would have to lose $8,000 or more (not $5,000) to reach minus $5,000 below $0
—-or looked at another way— now you have an $8,000 trading cushion for the remainder of that session. Let’s say that’s where the session ends. (With you up $3,000). Then staring with the next session Tuesday 6pm EST Globex - your daily loss limit now resets to $5,000 again - (meaning $5,000 below the $0 line)
but your total max loss limit is now $13,000
$10,000 plus the $3,000 profits you made in session 1)
make another $4,000 in session 2 and your intra-session day loss limit is now $9,000
Now let’s say you lose all $4,000 in profits from session 2 right before the end if session 2 so you end that session at breakeven (flat—$0)
starting on session 3 Wednesday 6pm EST Globex your daily loss limit is $5,000 (meaning $5,000 below the $0 line for that session)
and your max total loss limit is still $13,000
This is how it should be
But this is not how Earn2Trade does it (in my opinion)
Even with their “new” program
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This is how I interpret this
live account (meaning funded E2T trading account (someone who passed mini gauntlet trading challenge and was funded by tgeir funding company) =trailing drawdown (calculated intraday-session)
Demo account (trading challenge)= trailing drawdown (calculated end of day as opposed to calculated intraday-session with a live money funded E2T acct)
either way it’s a trailing drawdown
The live funded Acct appears to use the worst (in my opinion) method ( intra-session) trailing drawdown
and the demo challenge acct uses a slightly better (but still bad in my opinion ) method of end of day trailing drawdown
Hello all,
Thank you for the discussion on the topic. I will send your drawdown recommendation to management, but I can't promise that another change will be happening so soon.
To make it clear, though: The EOD drawdown is calculated, based on the end of day balance and the minimum account balance is adjusted after market close.
This applies to the evaluation and LiveSim accounts as well.
The older trailing drawdown rule that we used to have applies to Live accounts.
Thank you for the discussion on the topic. I will send your drawdown recommendation to management, but I can't promise that another change will be happening so soon.
To make it clear, though: The EOD drawdown is calculated, based on the end of day balance and the minimum account balance is adjusted after market close.
This applies to the evaluation and LiveSim accounts as well.
The older trailing drawdown rule that we used to have applies to Live accounts.
In my opinion any funding company that uses any drawdown method other than a fixed max drawdown that is based every new trading day on the zero line —-is a bad deal for the trader