No more Live Trailing Drawdown on Earn2Trade?

[Overnight]

Hello Overnight!

If you do a $50,000 Gauntlet Mini™ you'll get a $50,000 Live or LiveSim account once you pass, that'll be your balance or the amount reflected on the trading platform.

So you are telling me that in passing the Gauntlet mini, I get a Live, real money account, (NOT LIVESIM) you will park $50,000 cash in my account held by you?

How much money do you have available to do that? I.E. How many live traders can you afford to have at that level at the same time?

 

[Laissez Faire]

hi , why do you offer non trailing drawdown only for demo qualification stages? do you plan to extend this option for real accounts? it is very weird that trader after learning your rules on demo then need to immediately switch to live with a trailing drawdown..

It's because they don't mind you succeeding in the evaluation period, but they do not want you to succeed as a funded trader.

These companies only care for your subscription fees.

 

[Earn2Trade]

hi , why do you offer non trailing drawdown only for demo qualification stages? do you plan to extend this option for real accounts? it is very weird that trader after learning your rules on demo then need to immediately switch to live with a trailing drawdown..

Hello MkMk,

This has been addressed previously on this same thread:

We are making it easier for the trader to pass the exam. This has been a long requested change from our candidates, and we’ve responded by implementing it. We resisted this change for a long time as we agree that it means there will be a slight difference in the live account, however we did this to appease the large amount of candidates that requested it.

Unfortunately, it is not feasible to make an EOD drawdown in the live account. The firm will not provide unlimited liquidity on open positions, it simply must manage its risk.

 

[Earn2Trade]

So you are telling me that in passing the Gauntlet mini, I get a Live, real money account, (NOT LIVESIM) you will park $50,000 cash in my account held by you?

How much money do you have available to do that? I.E. How many live traders can you afford to have at that level at the same time?

Hello Overnight,

We also answered that question in the past:

Traders receive an account with the same amount they had during the evaluation. The account has shared margining with the master account and all losses have to be covered by the master account. If for whatever reason owing to technical errors or an errant spike in the market causes the limits to malfunction, then the trading firm must cover all of its losses. The prop firm covers all losses of the trader.

 

[trade2020]

The prop firm covers all losses of the trader.

This should be clarified further. The prop firm covers all losses below the starting balance—-up to the full daily loss below the starting balance and the max loss below the starting balance)

that is the real exposure in my opinion that the prop firm has when the prop firm does not allow positions to be held over weekends or from one session to another. Typically even intra-session most prop firms also have automated risk mgt to prevent someone from holding a position or initiating/starting a position if the underlying is getting close to limit up halt or limit down halt circuit breakers to prevent positions from being held on intraday sessions on those rare occasions where the underlying may be halted (and those could gap against position when re-opened intra-session)

Hello Overnight,

We also answered that question in the past:

Traders receive an account with the same amount they had during the evaluation. The account has shared margining with the master account and all losses have to be covered by the master account. If for whatever reason owing to technical errors or an errant spike in the market causes the limits to malfunction, then the trading firm must cover all of its losses. The prop firm covers all losses of the trader.