It's the Federal Trade Commission who governs websites like this - guy at CFTC said if no money was lost, they may not be interested but will take a look.
Passed the SMB Futures tryout in 15 days
- Thread starter trade2020
- Start date
It's the Federal Trade Commission who governs websites like this - guy at CFTC said if no money was lost, they may not be interested but will take a look.
That is not the bottom line. The bottom line is that starting capital is being provided to the trader by the proprietary trading firm (Helios Trading Partners). It ranges from $1,500.00 to $4,500.00. For many people that is a lot of money, and it is certainly enough money to make profit. The trailing drawdown only protects the firm from loss once the trader reaches a minimum profit threshold.
If the trader loses all of their money without reaching any profitability then all of the risk capital provided by the proprietary trading firm is lost. That can range from $1,500.00 to $4,500.00 of loss. On whatever merit you decide that such an amount of money is not "funding", it will remain your own subjective opinion. The money is put upfront for the trader plain and simple.
We categorically reject your accusation of not being transparent. It is clearly written (twice) on the Gauntlet Mini product page and is the fourth rule on the list of examination rules. The word itself is a hyperlink that takes the reader directly to a full explanation of what and how a trailing drawdown operates. The trailing drawdown FAQ is written very clearly, in "plain English" as much as can be done so. There are no efforts to mislead or misrepresent and we believe the explanation is very clear.
More importantly, if you don't like the trailing drawdown we offer another examination called The Gauntlet, which features a max drawdown that does not trail. It has a very limited ruleset and provides more flexibility to candidates to become funded by Helios. It is over a longer period of time (6o days) but many candidates prefer it for it's lack of trading restrictions.
"The trailing drawdown only protects the firm from loss once the trader reaches a minimum profit threshold."
I think that's what I said - the trader is essentially funding their own account and providing a cushion against loss for you. Clear as mud at your website.
mr trade2020, looks like you've got the hang of the important part, the trading part, how long have you been at it? Thx
To be clear - I think what Earn2Trade offers is a decent deal as it does provide some funding
I just think that most traders--like myself are looking for a funding deal whereby they can make withdraws down to zero and earn an income each week and start over fresh with the same funding intact as they had day 1.
So with that in mind what is the motivation for the funding company to offer that---probably nothing under the current 80-20 scenario. That is why I think that either Topstep or Earn2Trade or another competitor would be wise to offer the trader 2 plans for funding and the trader picks which one they will accept funding on
Option A- the standard 80-20 plan you currently offer with a trailing drawdown that requires the trader to leave profits in the account to maintain max trailing drawdown
and
Option B) an alternative plan such as 70-30 as an example--in this plan the investor is now making 50% more --30% instead of 20% and the trader makes 70% instead of 80%. In return for taking a cut from 80% down to 70% the trader gets a fixed drawdown instead of a trailing drawdown and that allows the trader to withdraw to zero over and over and still have same max drawdown available
I just think that most traders--like myself are looking for a funding deal whereby they can make withdraws down to zero and earn an income each week and start over fresh with the same funding intact as they had day 1.
So with that in mind what is the motivation for the funding company to offer that---probably nothing under the current 80-20 scenario. That is why I think that either Topstep or Earn2Trade or another competitor would be wise to offer the trader 2 plans for funding and the trader picks which one they will accept funding on
Option A- the standard 80-20 plan you currently offer with a trailing drawdown that requires the trader to leave profits in the account to maintain max trailing drawdown
and
Option B) an alternative plan such as 70-30 as an example--in this plan the investor is now making 50% more --30% instead of 20% and the trader makes 70% instead of 80%. In return for taking a cut from 80% down to 70% the trader gets a fixed drawdown instead of a trailing drawdown and that allows the trader to withdraw to zero over and over and still have same max drawdown available
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Is it possible to pass gauntlet mini and after a few months of positive trading switch to regular gauntlet rules without going through the combine for 60 days again ?
Because I really dont see the positive in paying 20% as long as you have the account just because they provided you with initial funding at the beginning.
It'd be cheaper to get $4500 from a loan shark at the end... SMH!
Also I understand why these programs are for suckers giving them the hamster wheel making bank. Lets say for the gauntlet mini 150K. One has to pass first and then make $9000 before they can withdraw $4500 and still have the initial drawdawn they started with. No wonder people keep failing to keep these accounts.. Hamster wheel....
Because I really dont see the positive in paying 20% as long as you have the account just because they provided you with initial funding at the beginning.
It'd be cheaper to get $4500 from a loan shark at the end... SMH!
Also I understand why these programs are for suckers giving them the hamster wheel making bank. Lets say for the gauntlet mini 150K. One has to pass first and then make $9000 before they can withdraw $4500 and still have the initial drawdawn they started with. No wonder people keep failing to keep these accounts.. Hamster wheel....
Model is not realistic.
But they should care better about trader staying.
For 1 good trader can recover the losses of several ones.
Obviously they earn good money with the combine.
But it takes 13 combines for a funded trader 2K loss.
Guess they earn more money on the 50K combine than on the 50K funded traders.
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on the line with Traders take $15,000 you have TST 20% + 1 month combine as $2165 - isnt 20% of $15,000 $3,000--so it should read Traders Take $15,00 TST 20% + 1 month combine $3,165 - unless I am reading what you wrote in the wrong way it also looks like the same error on other ones as well as far as calculating the 20% TST part
This is the definition on our website:
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What is a Trailing Drawdown?
A trailing drawdown is a drawdown that is pegged to your positive account performance. That means that if you increase your profit by $1.00, then your trailing drawdown will also rise by $1.00. All rules, including trailing, use closed and open equity intraday.
For example, in a $25,000.00 account your starting trailing drawdown is $23,500.00.
On your first trade as you make $100.00 in profit bringing your account balance to $25,100.00. This correspondingly raises your trailing drawdown to $23,600.00.
This continues until your trailing drawdown reaches the starting balance of your account, or in this case $25,000.00, at which point the drawdown will no longer trail above $25,000.00.
You can check your current maximum drawdown in R | Trader Pro's Trader Dashboard by looking at the Auto Liquidate Threshold Value column. It'll tell you exactly what balance your account is liquidated at.
The trailing limit changes based on account type: https://www.earn2trade.com/gauntlet-mini"
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Please tell us what we can do to make it more clear for you. The last thing we want is for you to have any mud in your eyes.
To be clear - I think what Earn2Trade offers is a decent deal as it does provide some funding
I just think that most traders--like myself are looking for a funding deal whereby they can make withdraws down to zero and earn an income each week and start over fresh with the same funding intact as they had day 1.
So with that in mind what is the motivation for the funding company to offer that---probably nothing under the current 80-20 scenario. That is why I think that either Topstep or Earn2Trade or another competitor would be wise to offer the trader 2 plans for funding and the trader picks which one they will accept funding on
Option A- the standard 80-20 plan you currently offer with a trailing drawdown that requires the trader to leave profits in the account to maintain max trailing drawdown
and
Option B) an alternative plan such as 70-30 as an example--in this plan the investor is now making 50% more --30% instead of 20% and the trader makes 70% instead of 80%. In return for taking a cut from 80% down to 70% the trader gets a fixed drawdown instead of a trailing drawdown and that allows the trader to withdraw to zero over and over and still have same max drawdown available
I just think that most traders--like myself are looking for a funding deal whereby they can make withdraws down to zero and earn an income each week and start over fresh with the same funding intact as they had day 1.
So with that in mind what is the motivation for the funding company to offer that---probably nothing under the current 80-20 scenario. That is why I think that either Topstep or Earn2Trade or another competitor would be wise to offer the trader 2 plans for funding and the trader picks which one they will accept funding on
Option A- the standard 80-20 plan you currently offer with a trailing drawdown that requires the trader to leave profits in the account to maintain max trailing drawdown
and
Option B) an alternative plan such as 70-30 as an example--in this plan the investor is now making 50% more --30% instead of 20% and the trader makes 70% instead of 80%. In return for taking a cut from 80% down to 70% the trader gets a fixed drawdown instead of a trailing drawdown and that allows the trader to withdraw to zero over and over and still have same max drawdown available