ETF is not a gambling website, nor is it the intention of ETF to empower those who treat trading as a gambling enterprise. Trading low liquidity and low volume contracts is not allowed.Ī ETF wishes to empower traders with knowledge and tools that allow them to make prudent investment decisions and build and invest according to long-term, consistent trading strategies. Not Allowed: 3 mini, 3 small, 30 micro (9 total "positions") Q What contract expiration can I trade?Ī You agree to trade the highest volume, most current contract for the instrument you are trading. Not Allowed: 2 mini, 2 small (4 total "positions") Not Allowed: 1 mini, 1 small and 20 micros (20 micros is equivalent to 2 "positions" putting this at 4 total positions. 10 micros counts as 1 small or 1 mini.Įxample: An account with a maximum open positions of 3 minis, 30 micros or 3 small will be used for this example. Going over your max allowed positions in your Elite account will result in a forfeit of profits with account closure. Doing so will result in a failure of your evaluation or Elite account. Q How do the maximum account positions work?Ī You are not allowed to have more than the maximum allowed positions open at any time. You can feel free to start a new evaluation and try again if that happens. If at any time you hit your drawdown your Elite account is blown and no payouts are made. Once you make $2,100 in realized profits (drawdown + 100) the drawdown stops trailing. If you make a trade and it goes to +$1,000, but you don't close and your trade is now only +$500 your minimum account balance moves up to $49,000 because your highest unrealized profit was $1,000. Starting balance +$100 becomes your minimum allowable balance in your Elite account, do not let your account balance fall beneath this level or you will fail.Įxample: You start with an account balance $50,000 and your max drawdown is $2,000 (minimum account balance of $48,000). Once you have earned realized profits equaling drawdown +$100 then you will no longer have a trailing drawdown as it will be removed permanently. Remember the daily loss limit cannot be hit or exceeded during the trading day or your account will be liquidated and will be deemed ineligible for funding.Q How does the trailing drawdown work in 1 step Elite (qualified) accounts?Ī In your Elite account your drawdown trails your unrealized profit until you reach your beginning balance +$100.Best practices dictate that you set a stop loss limit that is safely within the drawdown limits. Which drawdown rule will you need to adhere to Daily loss limit or trailing max drawdown? Remember, the value which is closest to your starting balance is most applicable. First, you need to know exactly where you are to start the day.Tips to Manage Daily and Trailing Max Drawdown Įnd of day trading balance (before commissions) is $102,000Īs you enter the next trading day, your trailing max drawdown increased by $2,000 from the lowest point ($97,000) and has now been adjusted to a max trailing drawdown of $99,000Ī.) Trade #1, you lose $1,000, and your evaluation has been auto-liquidated due to the violation of the daily loss limit.Įven though you did not violate the trailing max drawdown, the daily loss limit rule was violated, and your account was auto-liquidated. Remember, the smaller number between the drawdown and max trailing drawdown is always applicable. On this day, the daily loss limit is $1,000. We will use the same example as discussed in the above paragraph. Putting it all Together | Daily Max and Trailing Max Drawdown The following example is an evaluation with a trailing drawdown of $3,000 with a starting balance of $100,000 buying power.ī.) Trade #2 you lose $500 with an end-of-day PnL (not including commissions) of $2,000Įnd of day trading balance (before commissions) is $102,000.Īs you enter the next trading day, your trailing max drawdown increased by $2,000 from the lowest point ($97,000) and has now been adjusted to a max trailing drawdown of $99,000.Ī.) Trade #1 you lose $1,500 and stop trading.Įnd of day trading balance (before commissions) is $100,500Īs you enter the next trading day, your trailing max drawdown remains at $99,000. The trailing max drawdown is calculated at the end of the trade, which increases your peak equity. Simply put, it always moves up and never down. For this example, we will assume that your evaluation has a trailing max drawdown of $3,000 Know the trailing drawdown for the evaluation in which you are participating.Your account will be auto-liquidated if you hit or exceed the trailing drawdown. A trailing drawdown is a minimum account balance that will increase as you make profitable trades.
0 Comments
Leave a Reply. |