If you are going to use comparative analysis then the data HAS to be normalized. There is absolutely no way around this. Otherwise guys with $50 FX accounts would steal all of Soro's money away from him and he would have nothing.
Topsteptrader
- Thread starter deaddog
- Start date
If you are going to use comparative analysis then the data HAS to be normalized. There is absolutely no way around this. Otherwise guys with $50 FX accounts would steal all of Soro's money away from him and he would have nothing.
I can tell you this: trading a sim on Mirus/AMP/TOS vs. TST has a significant difference. I've done both, and I can state for a fact that even while trading a combine, you WILL have emotions.
In your TOS or AMP account you can just reset your losses to zero and pretend those trades never existed. And nobody is going to review your stats.
Whereas in the combine, you have to face those "losses", and writing the daily journal or reading the posts on their community chat is a real eye opener. Traders face fear and greed, the same emotions you have to deal with in a live setting.
Also, when you pay for a combine, there's money on the line, so you're going to be more careful about taking "losses" even though the losses aren't real.
So you are saying that the account size doesn't matter. You just compare how well each trader does trading one contract.
At the end of the year if every one has made $5000; the $5000 account and the $100000 account have the same performance?
Is this how the hedge funds report their performance?
Hedge funds trade on notional. For the most part, hedge funds are not using 20 or 30 to one leverage on directional trading. But to answer your question, if both those guys you listed came to me for backing, and had EXACTLY the same p&l trading one contract, then yes, I would view their performance as identical despite one having a 5,000 account and the other a 10,000.
BTW, this is why most mutual funds are almost completely cash driven. They buy stock in full. So if a billion dollar mutual funds is 95% invested, it means they are long 950 million in stock paid for in cash. They also usually report their cash position so you know how much cash they are holding.
I would NOT saying passing combine is IRREVELANT. The Combine has very strict risk management rules and a short leash. Passing it shows some strict discipline and being able to generate 9K in 10 days.
So, the bottomline is ONCE you pass the 150K Combine and go to Jr Trader status, how many lots can you swing?!
If not 15 lots, then at least 5 lots right? If you down to 1 and 2 lots then what's the difference between that and 30K jr trader account?
Geez...
TST seems to be less attractive by the minute..
So, the bottomline is ONCE you pass the 150K Combine and go to Jr Trader status, how MANY lots can you swing?!
If not 15 lots, then at least 5 lots right? If you down to 1 and 2 lots then what's the difference between that and 30K jr trader account?
Geez...
If I were a true backer, I would like to see historical track record and run metrics on it. Sharpe, R/R, max drawdown etc. Or run a more reasonable Combine. Not 10 or 20 days. But whatever.
Trader99, there seems to be some confusion here. I think you are confusing the "rules" with what guys like scalper joe are actually "recommending". You can trade all 15 lots when you go live. Why not, go for it. Nothing says you can't. What scalper joe is saying, and this is simply his opinion, is that you may not be able to control your swings well with 15 lots. I think it really depends on what you are trading. I mean 15 lots of the NQ is very easy and manageable, but 15 lots of crude oil not so much. I think you are taking joe's suggestions as facts when he is simply giving you his opinion. Most the guys here are simply trying to figure out how to optimize this and they are running through different scenarios. But you can trade 15 cars at a clip. Why not?
I use to back guys trader99. All that stuff you mentioned is pure garbage for intra-day trading, especially with futures. Those metrics work much better with longer term trading and stock and options. I gotta be honest with you dude, I never found any decent metrics for intra-day futures guys. I think the best one and only one is how many years has the guy been doing this since he last blew out.
Got it!
I went to the website and actually read the rules:
http://help.topsteptrader.com/knowledgebase/articles/182836-funded-trader-account-parameters
"As a funded trader, account parameters (risk parameters and buying power) match those from the successfully completed Combine.
Products and permitted trading times will also match those from the successfully completed Combine. Additional information can be found on the Funded Trader page."
I'm not saying day 1 on a live account I would swing 15 lots right out the gate! But probably at least 5 lots since I do that normally now and feel quite comfortable. Then 10 lots which is not too risky for me. Or I haven't had any big losses on 10 lots yet(*knock on wood*). And gradually go to 15 and more.
So, as long as I can right off the bat go between 5-10 lots and build up that $4500 cushion. Then go for 15+ over time then it's reasonable.
Mavericks - Thanks for the clarifications. I read these comments and thought they meant it were facts because they said the rules are not clear. I think the rules are spelled out on the link.
What's not clear is once you become a Sr Trader and built up $4500 cushion, what is POSSIBLE?
Do you go from 15 to 20 lots? 30 ? Not clear.
Maverick, by now you are well versed with the rules. The 150k Jr Trader account has a $600/day loss limit (when you factor in the weekly loss at 3k). Do you think it's realistic to trade 15 cars with a $600 stop? Even if you scaled into 15 lots, your stop is 3 ticks on a full position, as 4 ticks would auto stop you at minus $750.
So I don't think they will let you trade 15 lots when you go live. The rules of Jr Trader specify that you have to fill out a trading plan, which includes the max number of lots you will trade with to start, and that has to be accepted by the backer. And remember, as a Jr Trader, you cannot add to a loser, and you cannot add to a winner until you're up $1,000 in net P&L.
Even though the site may claim that you can trade within the same parameters in the live account as you did in the combine, my opinion is they are going to restrict the lot size until you build up the $4,500 cushion. As Ace posted earlier, you don't have to rush to get to Sr Trader, since there is no time limit, hence no need to "swing for the fences" once you're in the live account. It's a process that you work out with the backer, in terms of drawdown limits and lot size.
If Trader99 wants to scale in with 5 lots to start on the 150k Jr Trader account, my guess is that would be acceptable, and this is just my view, not TST or the backer.
The key question that Trader99 asked is what happens AFTER he makes Sr Trader. And from the TST site, it's unclear. And since there aren't any Sr Traders posting here, and no interviews of St Traders recently, we are speculating on various outcomes.