OH!!!
https://www.topsteptrader.com/learnmore#learnmore-get-funded
For $150K account for example, if you are down $3K in a day, then you are basically done for the week?! And you would be only $1500 from being totally done since max drawdown is $4500.
Tight leash...
This has been discussed repeatedly in this thread, however, just for clarification:
The $150k combine account does NOT have a weekly loss limit, only a daily loss limit and a maximum allowable drawdown, which is a trailing number based on the CLOSING balance of each day. Only the Jr Trader account has the weekly loss limit, with the exception of the 30k account.
If you are down "$3k in a day" then you fail the combine, since that is the maximum loss allowed for ONE day, and therefore you could still trade the rest of the week, but the combine will not be evaluated or reviewed for funding.
If say you are up $3k in the combine in the first three days, and then lose $4,700 over the next three days, then you won't qualify for funding either, since the "maximum allowable drawdown" would be hit, even though your balance would NOT be minus $4,500 below the zero balance, it would be only minus $1,700 in the red.
Shiko2000 posted his stats of his prior 30k combine. Go back in the thread, and you'll see that he was UP in the combine, then DOWN in the combine, only slightly below the zero balance, and then finished UP in the combine, meeting the profit objective, meeting the 55% or greater winning day metric, and never once hitting the max daily stop loss. HOWEVER, since the MAXIMUM allowable drawdown of $1,500 was breached, his combine was not eligible for review.
Getting back to the $150k account, the Jr. Trader account (live funded account) has a $3,000 daily loss limit AND a $3,000 weekly loss limit. It also has a maximum allowable drawdown of $4,500. Commodity Trader pointed out that since you now have a WEEKLY loss limit in addition to the daily loss limit, you can't start swinging big size in the Jr Trader account, given that the weekly loss limit would likely get hit, since it is just a daily loss limit divided by 5 ($3,000/5= $600, this is "TRUE" loss limit, if you plan on trading each day of the week).
As I posted earlier, you have to incorporate the daily loss limit AND the maximum allowable loss limit for each combine, and then trade accordingly.
The forumula is as follows:
Maximum Allowable Drawdown/Maximum Allowable Losing Days = TRUE loss limit
Once you are past the 55% winning day threshold, then the "TRUE" loss limit will increase, since you can withstand a greater loss and still pass the combine , but you still have to keep it well below the DAILY loss limit.
Tight leash? Yes. That's why the 30k combine is the only combine that makes sense based on their current rules. Even though the stop is tighter and the lot sizes are smaller, it at least has the SAME metrics in the combine and the Jr Trader funded account, especially when you take the 20 day combine, which gives you a greater time limit.
