TopstepTrader Q & A

[traderjo]

The $100k account has a $2,000 Daily Loss Limit/Weekly Loss Limit (Step 2) and a $3,000 Trailing Loss Limit (EOD). If you were to make $10,000 your Weekly Loss Limit would disappear and your Trailing Account Loss Limit would say "your cannot cannot reach its starting balance". So you you would be +$10,000 with a $3,000 Daily Loss Limit and a rule that says you cannot return to your starting balance.

SO correct me and simplify if I am wrong please
SO on a 100K ( Notional) account trader can go up to 98,00 Net liquidity value Correct?
Then If a trader makes 10,000 so account balance is 110,000 and then for his account to close can one go down to
A)98,000 or only to
B) 107,000 ..
If it is B) then TST is not taking any risk at all beyond the first 2,000!
What is it exactly?

 

[nooby_mcnoob]

SO correct me and simplify if I am wrong please
SO on a 100K ( Notional) account trader can go up to 98,00 Net liquidity value Correct?
Then If a trader makes 10,000 so account balance is 110,000 and then for his account to close can one go down to
A)98,000 or only to
B) 107,000 ..
If it is B) then TST is not taking any risk at all beyond the first 2,000!
What is it exactly?

Yes the answer is (B) which is why TST is not a good program (IMO)

 

[DevBru]

SO correct me and simplify if I am wrong please
SO on a 100K ( Notional) account trader can go up to 98,00 Net liquidity value Correct?
Then If a trader makes 10,000 so account balance is 110,000 and then for his account to close can one go down to
A)98,000 or only to
B) 107,000 ..
If it is B) then TST is not taking any risk at all beyond the first 2,000!
What is it exactly?

Both your examples are wrong, you have a 3K trailing draw down, which means you can go down to 97K before you lose the account, assuming you haven't made a profit first.

If you make 2K profit and your balance is 102K your max draw down moves up to 99K.
If you make 3K or more your max draw down is 100K.

You just can't lose more than the daily loss limit at that point in 1 day.

 

[DevBru]

Yes the answer is (B) which is why TST is not a good program (IMO)

No, the draw down stops trailing once you reach the starting balance.

 

[nooby_mcnoob]

No, the draw down stops trailing once you reach the starting balance.

The daily loss limit is basically the same restriction.

 

[DevBru]

The daily loss limit is basically the same restriction.

No it is not.

It means you cannot lose more than your daily loss limit in one given day.
So if your daily loss limit is $3K you can lose $2,9K a day as many times as you want, at least untill you reach your initial starting balance.

So if he made $10K in profits he can have 3 losing day's of $2,9K in a row and then still has $1,3K left before he losses his account.

 

[Overnight]

...
So if your daily loss limit is $3K you can lose $2,9K a day as many times as you want, at least untill you reach your initial starting balance...

Which makes one wonder. If initially you were allowed to draw down to 98K, then how come after reaching 100K, you are not allowed back down to the 98K limit?

It is set up to make you fail so you have to pay a fee to do nothing but reset an arbitrary timer.

 

[nooby_mcnoob]

No it is not.

It means you cannot lose more than your daily loss limit in one given day.
So if your daily loss limit is $3K you can lose $2,9K a day as many times as you want, at least untill you reach your initial starting balance.

So if he made $10K in profits he can have 3 losing day's of $2,9K in a row and then still has $1,3K left before he losses his account.

Once past the initial drawdown I should have no more restrictions. There is no other way to size up.

 

[Overnight]

Once past the initial drawdown I should have no more restrictions. There is no other way to size up.

Huh? Sizing up is easy. On a 100K account they let you trade 10 contracts of the futures of your choice IIRC. A couple of ticks in there, and BAM! Instant profit!

 

[DevBru]

It is set up to make you fail so you have to pay a fee to do nothing but reset an arbitrary timer.

I agree.