TopstepTrader Q & A

[Sekiyo]

Got a question @TopstepTrader

Once funded and profitable,
At which rate do you take your 20% out ?
Daily ? Weekly ? Monthly ? Yearly ?

Or is it per withdrawal ?
But what if nothing is withdrawn ?

 

[Sekiyo]

Got another question @TopstepTrader
Take your time no worries.

Let’s say I have a xK funded account,
I make 5K free from TST 20% commissions,
I leave them in the account and continue to trade.

What if I hit the daily loss limit ?
Let’s say 2% from 150K + 5k account ?
Which is $3100. Do I still own the right to withdraw 2.9K ?

Also, it’s said round turn fees with TSTrader for ES is $2.68 when it’s actually $3.70. Would you care to elaborate on this ?

 

[ZTrader888]

I read this in another thread:
"Be careful - in your funded account - if you withdraw your profits down to zero Topstep will close your account because they only offer a trailing drawdown and not a true fixed drawdown.

Once you have made profits equal to your max drawdown - a trailing drawdown requires you to keep profits equal to the max drawdown in the account (meaning you cant withdraw them if you still want your max drawdown)

example: $4,500 max trailing drawdown in your funded acct - you start out week 1 and generate $4,500 in profits. If you withdraw the entire positive balance of your funded account of $4,500 your account is closed. Their risk is overwith---you must now keep all $4,500 in the account and it now is your cushion to keep the account open.

The real funding is just provided at the start of the funded account - if you lose daily and keep losing then eventually when hit your max allowable loss the account is closed and they have taken the loss bot you. Conversely though if you generate profits you must keep profits equal to max drawdown always in the account to keep that drawdown--hence--trading with your own money at risk from that point on and paying them 20%"

If this is true, what's the point of a funded account? You advertise that the first $5,000 belongs to the trader. Then what happens? You have to earn another $5,000 and keep it in the account as a cushion? You need to explain this with more detail. It's very confusing and suggests that Topstep has little transparency. I trade with a prop and it's straightforward - if it's 80/20 you get your 80 minus any fees.
Please explain with examples - use the $150,000 account that you offer. Thanks.

 

[SelfMadeDude]

TST, OneUp, E2T....all these firms provide a great opportunity for "experienced" traders with solid risk management parameters/contingencies to generate profits using the firm's money.

It is not their job to cater to traders who are unable to trade according to their rules and requirements.

Trading is not easy and the truth is that it is not suited for everyone (nor should everyone be allowed to make profits - trading well and making a decent income is not a human right, it is a privilege..., a privilege reserved for those who "solved that puzzle."

Most people should invest via their 401k, others might be able to swing trade for weeks and then there are the very very few who can day-trade successfully.

The program they have set-up is not easy...don't get me wrong....but for traders with a lot of good experience and solid risk management, they are actually pretty fair.

 

[Laissez Faire]

TST, OneUp, E2T....all these firms provide a great opportunity for "experienced" traders with solid risk management parameters/contingencies to generate profits using the firm's money.

It is not their job to cater to traders who are unable to trade according to their rules and requirements.

Trading is not easy and the truth is that it is not suited for everyone (nor should everyone be allowed to make profits - trading well and making a decent income is not a human right, it is a privilege..., a privilege reserved for those who "solved that puzzle."

The program they have set-up is not easy...don't get me wrong....but for traders with a lot of good experience and solid risk management, they are actually pretty fair.

I agree with this post. These programs does not cater to the performance or skill levels of complete newbies. That said, back in the day, I think TST had quite unrealistic performance requirements. They've changed that now.

I'm trading my own account, but have considered enrolling in such a program for extra income. Do you have an opinion of which of these firms are better?

 

[PoopyDeek]

LF, collect cans you baller.

 

[deltaf0rce]

I read this in another thread:
"Be careful - in your funded account - if you withdraw your profits down to zero Topstep will close your account because they only offer a trailing drawdown and not a true fixed drawdown.

Once you have made profits equal to your max drawdown - a trailing drawdown requires you to keep profits equal to the max drawdown in the account (meaning you cant withdraw them if you still want your max drawdown)

example: $4,500 max trailing drawdown in your funded acct - you start out week 1 and generate $4,500 in profits. If you withdraw the entire positive balance of your funded account of $4,500 your account is closed. Their risk is overwith---you must now keep all $4,500 in the account and it now is your cushion to keep the account open.

The real funding is just provided at the start of the funded account - if you lose daily and keep losing then eventually when hit your max allowable loss the account is closed and they have taken the loss bot you. Conversely though if you generate profits you must keep profits equal to max drawdown always in the account to keep that drawdown--hence--trading with your own money at risk from that point on and paying them 20%"

If this is true, what's the point of a funded account? You advertise that the first $5,000 belongs to the trader. Then what happens? You have to earn another $5,000 and keep it in the account as a cushion? You need to explain this with more detail. It's very confusing and suggests that Topstep has little transparency. I trade with a prop and it's straightforward - if it's 80/20 you get your 80 minus any fees.
Please explain with examples - use the $150,000 account that you offer. Thanks.

I’ll take a stab at this having read and re-read this concept. If you can make money under their conditions in the simulator then they will give you a crack at earning 5k and they’ll eat the first 4500 of risk. From there though, use your head. Where are you getting 15 contracts of BP on 5k of your own money? Yeah it’s no secret they’re an exchange member and so can create day margin out of thin air. But if you can pick away a couple hundred bucks a day and apply that extra leverage when the opportunity is right, it’s a benefit you could not have achieved on your own. Otherwise I don’t know where else you’re getting 15 full contracts on 5k. And to be honest to respect 3% max drawdown on Capital is not asking much from a risk POV I personally think.

 

[traderjo]

deltaforce .. can you please explain this further "secret they’re an exchange member and so can create day margin out of thin air."

 

[Topstep]

Thank you for all of your questions and feedback over these past few months. We admittedly haven't dedicated enough time to this thread, but that's all going to change! Please continue to engage here, and we will make sure you're getting the answers you're looking for. We'll get a post up soon addressing questions that have gone unanswered, so keep an eye out! We are eager to jump back into the conversation. Thanks for your patience.

For your urgent or time-sensitive questions, email us at support@topsteptrader.com and we’ll be sure you’re taken care of.

Thank you,
Team Topstep

 

[Topstep]

Got a question @TopstepTrader

Once funded and profitable,
At which rate do you take your 20% out ?
Daily ? Weekly ? Monthly ? Yearly ?

Or is it per withdrawal ?
But what if nothing is withdrawn ?

Hi @Sekiyo,

Traders can request a withdrawal from their Funded Account® at any time by contacting our team at support@topsteptrader.com. Once a trader requests a withdrawal, we will work with our brokerage partners to remove the funds from the trader’s Funded Account. Once we have confirmation that the funds have been moved at the brokerage, we will begin the transfer process with our banks to disperse the funds. Withdrawals are generally dispersed to the trader within seven (7) business days, however, as a result of the volatility and increase in new Topstep funded traders and withdrawals, it is taking up to (14) business days to complete some withdrawals.

Traders will receive 100% of the profits from withdrawals, up to a total of $5,000. After the first $5,000 of funds have been received by the trader, the profit split will become 80/20, with the trader receiving 80% of withdrawals and TopstepTrader retains 20% of the requested withdrawal. To be clear, this is per trader. If you withdraw $5,000 and then lose your Funded Account, your next Funded Account withdrawal will be 80/20 when you start back up again.

Once the withdrawal request is processed, the Trailing Max Drawdown will be automatically set to the starting account balance (the trader cannot allow the account balance to reach or go below $0 after a withdrawal).

Thanks!

Team Topstep