Quote from Lucias:
Michael,
Thank you for taking the time to answer questions. I think the most important question is whether or not you really fund traders. I know that you do provide some funding but if your program and rules are realistic then you should have several traders who've achieved more significant success.
So my questions are simple:
1. Do you have more then 12 traders who have net (before splits) at least 30+k? Do you have more then 4 traders who have cleared 100k (before splits)?
2. Do you make more from the combine fees or from trader's trading profits?
3. If a trader hits their daily loss limit after going live over 1 session or multiple sessions, what happens? And how do they get back to live trading? Say my loss limit is $500.. I'm cleared for live. I'm down $250 first day then $250 next day, would I be sent back to sim? If yes, how do I get back to live? How many days am I down? Let's say it happens again, do you have a dollar cut off for traders and if so what is it for each funding tier?
4. Are you a CME exchange member and if yes then why don't you pass on those savings to your traders?
Since going live trading the ES about 6 months ago, I've did extremly well, imo. I don't want to be down from trading to trade in sim. I know you have a custom combine for successful traders. What types of things do you make adjustments for in the custom combine?
Also, I look forward to when you add Ninjatrader. I use OEC and their DOM is rock solid. I tried the T4 DOM and had many problems.
1. Do you have more then 12 traders who have net (before splits) at least 30+k? Do you have more then 4 traders who have cleared 100k (before splits)?
First, to clarify, TopstepTrader is a trader education and recruitment firm, that feeds its talent to Patak Trading Partners. Patak Trading Partners financially backs the traders.
Patak Trading Partners does not disclose information on the traders that they capitalize or the status of their accounts. That is private information.
Any individual who is interested in becoming a Recruit or is currently a Recruit with TST, receives ALL information that directly affects them: the Combine requirements to become a funded trader AND the requirements for Funded Traders to remain trading on the account.
The financials of current funded traders in no way affects any potential Recruits or Funded Traders.
2. Do you make more from the combine fees or from trader's trading profits?
Combine fees are fully refundable, the requirements to receive a deposit refund can be found here:
http://www.topsteptrader.com/deposit. The TopstepTrader model isnât to churn these fees. We are a source of education and an opportunity. The goal is to financially back traders who prove their results within the structure of our Combines. Clearly there are multiple ways to generate revenue within our structure, however, the largest source of that is and always has been the financial backing of sound, disciplined traders.
3. If a trader hits their daily loss limit after going live over 1 session or multiple sessions, what happens? And how do they get back to live trading? Say my loss limit is $500.. I'm cleared for live. I'm down $250 first day then $250 next day, would I be sent back to sim? If yes, how do I get back to live? How many days am I down?
Our traders are allowed to lose twice the amount of their daily loss limit (BELOW the initial balance). Therefore, if a trader is trading a $150K account, we are willing to risk $6K on them. If a trader hits his loss limit ($500-$3000) he would be sent back to the Combine. These requirements are only in place UNTIL an account cushion has been built ($5K for $30K and $50K accounts and $10K for $100K and $150K accounts). Once an account cushion has been built, virtually all expectations/requirements are lifted off the trader.
IF a traderâs performance is not living up to expectations, the trader is offered the opportunity to return to the Combine to continue to develop as a trader and work towards getting their live account back. If a funded trader is sent back to the Combine, meets the objectives set forth and is then taken back to funded trader status, they start with the account balance reset and the trader does NOT have to make up their losses. ALL losses beyond the initial account balance are absorbed by the Patak Trading Partners.
4. Are you a CME exchange member and if yes then why don't you pass on those savings to your traders?
As previously answered on a different thread: Yes, Patak Trading Partners is a CME exchange member. Patak Trading Partners is not a discounted brokerage house. We can not compete with commissions of discounted brokerage houses. This is what Patak Trading Partners has worked out with our clearing firm. It is fair. If we have high volume traders (which we do not) then we can go back to the clearing firm and work something out as we will work to retain any talent that we find. That is not in the cards at this time. To add to this, there are no platform fees cost for squawk, or any other tools as a funded trader (excluding the advanced charting option that the platform provider debits the trading account of the funded trader if they request that they want it).
5. Since going live trading the ES about 6 months ago, I've did extremly well, imo. I don't want to be down from trading to trade in sim. I know you have a custom combine for successful traders. What types of things do you make adjustments for in the custom combine?
We always accept custom Combine objective proposals:
http://www.topsteptrader.com/customevaluation. As an example of some of the exceptions or agreements we have made: there have been lowered profit targets and adjusted performance requirements. Strategies and methods differ, therefore we are willing to work with a Recruit on an individual basis in order to provide them the best and most fair opportunity for funding.
6. Also, I look forward to when you add Ninjatrader. I use OEC and their DOM is rock solid. I tried the T4 DOM and had many problems.
We are very excited about the changes forthcoming. NinjaTrader is a dynamic platform that many individuals are comfortable with. By offering Ninja in our program it serves to better represent our Recruits and their trading abilities should that be their preferred platform.
) have at least some doubt about your operation. Given the vast number of "recruits" versus live traders, and given you ran an online gaming/gambling website very similar to topsteptrader in the past, it's logical to view TST as simply a clever revenue operation first, and a recruiting zone second.