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Agree with all that! I think it's the next logical step. I have already paid for this month's combine, so I will start trading the combine again tomorrow through the end of the month, and then make the switch if I am not a stone's throw from the profit target. They did announce that because of the increased volatility, they increased the profit target by another $500, so now I am a thousand away all of a sudden. Kind of bogus, but understandable. So I will trade bigger and more aggressive when prime opportunity arises, but this new increase reduces my chances based on my previous trade experience. Thanks for commenting!
Rule number one in the markets is to never lose money. Well since that isn't realistic, I say if you're going to lose some money anyway then lose small, but when you win, give it all you've got and win big!
Thanks for the vote of confidence Bob! So yes, I am very confident in my edge, my ability to trade, AND I do believe my scaling issue has been holding me back in the current combine. BUT I do have limited funds to be able to trade, so herein lies the reason for the combine. I have a young family, and so to ease my wife's concerns I am trying to place the account risk elsewhere as much as possible. To be clear I will not stay in a combine forever, as I have stated it has been good for me to develop discipline in my trading, but that is a limited utility now. It is time for that investment to pay off or take a hike, though I am quite confident it is going to pay off, obviously, or I wouldn't still be doing it.
So to answer your question, yes I could use the extra 200k in buying power, and for a few months @$110 a month it is worth the risk in my opinion. Which is what the smallest TSTFX account represents.
Also, another thing that has weighed on me about the TST funded futures account is the fees. They want around $80 a month per data feed(CME,CBOT,etc.) depending on which futures you trade. That's almost a thousand dollars a year right off the top! This new FX option has no fees whatsoever. That's huge.
So this month I will more than likely be canceling my current combine at rollover time, and switching to the FX option. And I now have a legitimate track record at a reputable prop firm, which may come in handy down the road.
Thanks for chiming in Bob!
Rule number one in the markets is to never lose money. Well since that isn't realistic, I say if you're going to lose some money anyway then lose small, but when you win, give it all you've got and win big!
I totally get the frustration there. I think the important thing to remember is that if you are getting the "aha" moments, then you are definitely doing some things right. As I have mentioned, it is nearly impossible to shortcut the process for someone, because the journey is so individual. Like no matter how good I was, or how much experience I had, I could never tell you how to trade successfully! Only you can find your own path, but time boils down to how many rabbits you must chase before you put all the pieces together. This is why I think a coach is such a valuable resource. If you find one you trust, then they can at least help you avoid spending time on senseless research, and other crazy ideas, while their knowledge and experience will keep you focused on the right things. The important things. This is why "The Daily Trading Coach" by Steenbarger had such a dramatic impact on my trading. I literally became my own coach.
#2 seems like a different animal, and feel free to throw out an example or two, but a couple things come to mind from previous experience. It could either be risk/money/leverage oriented, or a psychological issue dealing with trust in yourself or ability. I could be way off base there, but I do remember that Brett had said that most common trading issues, hidden by what seem a discipline deficit, are actually from trading incorrectly from a risk perspective. I probably butchered that lol, but if you have not read that book then I seriously encourage you to do so. EVERY SINGLE TRADER should read that book. It is my trading bible.
Thanks for commenting, glad you are vibing with some of my thoughts!
Rule number one in the markets is to never lose money. Well since that isn't realistic, I say if you're going to lose some money anyway then lose small, but when you win, give it all you've got and win big!
He is Risen! Happy Easter everyone! What a great Sunday with friends and family out at the beach. I am truly blessed!
Rule number one in the markets is to never lose money. Well since that isn't realistic, I say if you're going to lose some money anyway then lose small, but when you win, give it all you've got and win big!
Also, another thing that has weighed on me about the TST funded futures account is the fees. They want around $80 a month per data feed(CME,CBOT,etc.) depending on which futures you trade. That's almost a thousand dollars a year right off the top! This new FX option has no fees whatsoever. That's huge.
I looked at the TST FX page and was unlcear about the lot size, whether it is fullsize or mini contracts,or what used to be $10, $1 per Pip (when Pips on the Dollar pairs were 4 decimal places, before they became 5). But I did see that the commission they charge is $8 a roundturn which suggests the fullsize contract. Most of the US futures are $12.50 a full 4 digit tick (or now $6.25 for the 6E 5 digit half tick). The contracts are basically the same size and the forex account shown allows a max of three lots like the futures contract? But at least with Futures you are on a regulated exchange and have actual volume information. I don't understand the difference between forex and futures that would make it attractive.
But back to my point:
Forex Commission: $8 a lot
Futures Commission:
6E (Euro) - $3.42 on TS Trader, $4.80 on NinjaTrader or $5.24 on T4
E7 (mini Euro) - $1.97 through to $3.74
So you are going to be paying at least $3 less per roung turn less for futures and if you trade over 25 lots a month, barely more than one 1lot trade a day, you will pay more in the forex account.
You do not win as a trader, you just get to play again the next day. If that game doesn’t appeal to you then you should not trade. Gary Norden
So yes, you are correct the fees per full contract will be more expensive. And you are also correct that the max contract size will be around three, depending on which combine you choose. Here is what you are missing: I can take the equivalent of that one futures contract and then break it down into 10 mini contracts or 100 micros. At that point the $8 fee gets broken down to the size you are trading, so for example one mini that represents 1/10th of one full contract should have a round turn cost of just $0.80.
So let's say I have an account loss limit of $1,500, and I want to risk no more than 2.5% on any given trade, and let's say my average stop is 12 points. On a normal futures contract for the 6B, each pip is worth $6.25, and that stop will cost me around $75 per contract. Well that is actually already 5% of my account value, and at two losses I am already down $150(10%) on the day trading one lots! That is way out of whack, but achievable if you have edge, and are very consistent in your approach. It does not leave much room for error, especially if you want to bump up size by another contract or two.
Now let's use that same formula for the TopStepFX option. 2.5% risk equates to $37.5, and $75 on the day which is now achievable through mini or micro lots. Each mini represents $1 per pip, so I can now trade three minis with that same 12 point stop at a cost of $36 plus commissions. I can also do the same with 30 micros. This is the primary benefit of the FOREX over the futures option. Plus you did not add in the $80 a month in data fees with the futures account, which COULD potentially make up for the difference in commissions depending on your trading volume.
Now, I have learned to be successful risking up to 10% of the account per day, so I would probably continue down that path, but I can vary my approach and trade smaller when my optimal trade conditions are not present, or scale in as the trade progresses. Most importantly though, I can break that full size down into multiple legs, I thrive on the flexibility.
I hope that helps.
Rule number one in the markets is to never lose money. Well since that isn't realistic, I say if you're going to lose some money anyway then lose small, but when you win, give it all you've got and win big!
What is the Maximum Position Size?
The Maximum Position Size is anywhere from 2-5 standard lots at any one time depending on the account that you have chosen. This is calculated across all pairs that you are trading. We do allow you to trade micro and mini lots. So if you were in the $300K Trading Combine you can trade up to 30 mini lots or 300 micro lots at a time.
This was in the Trading Combine Rules section
Rule number one in the markets is to never lose money. Well since that isn't realistic, I say if you're going to lose some money anyway then lose small, but when you win, give it all you've got and win big!
Thanks. I had missed that bit and misunderstood. I thought, from the example I gave, that you could still only trade three lots. Not appreciating that they were three standard lots which,as you say, can be traded as thirty separate minis or 300 micros. That makes sense now as before I couldn't see why for somebody trading currencies the forex account was that much different or betterthan the futures account.
You do not win as a trader, you just get to play again the next day. If that game doesn’t appeal to you then you should not trade. Gary Norden
A section from Lesson 80 in The Daily Trading Coach on trade management, and also the inefficiency of AIAO vs. scaling:
Your first reaction might be: You don’t do anything! It’s certainly possible
to enter a position and sit in it, waiting for it to hit your profit target
or your stoploss level. That reaction, however, is inefficient. It’s like selling
the same mix of products at all stores even though some products sell
better and some sell worse at particular locations.
To appreciate why this is the case, consider the moment you enter
a trade. At that point you have a minimum of information regarding the
soundness of your idea. As the market trades following your entry, you
accumulate fresh data about your idea: the action is either supporting or
not supporting your reasons for being in the market. For instance, if your
idea is predicated on falling interest rates and you see bonds break out
of a price range, that would be supportive of your trade. If you anticipate
an upside breakout in stocks and you see volume expand and the NYSE
TICK move to new highs for the day on an upward move, that is similarly
supportive. If you track market action and themes while the trade is on,
you can update the odds of your trade being successful.
Trade management is the set of decisions you make based on the
fresh information that accumulates during the trade.
One way that I see traders utilizing this information is in the way that
they scale into trades. Their initial position size might be relatively small,
but traders will add to the position as fresh information validates their idea.
My trading capital per trade idea is divided into six units. I typically will enter
a position with one or two units. Only if the idea is finding support will
a third or fourth unit enter the picture. I have found that, if my trades are
going to be wrong, they’re generally wrong early in their lifespan. By entering
with minimal size, I incur small drawdowns when I’m wrong. If I
add to a position as it is finding support, I maximize the gains from good
trades. This trade management, I find, is just as important to many
traders’ performance as the quality of their initial ideas. Indeed, I’ve seen
traders throw lots of trade ideas at the wall and only add capital to the ones
that stick: the management of their trades makes all the difference to their
returns.
Such trade management means that you have to be actively engaged
in processing information while the trade is on, not just passively watching
your position. Good trade management is quite different from chasing
markets that happen to be going in your favor. It is a separate execution
process unto itself, in which you can wait for normal pullbacks against
your position to add to the position at favorable levels. If you are long, for
example, and the market is in an uptrend, the retracements should occur
at successively higher price levels. By adding after the retracement, you
gain the profit potential when the market returns to its prior peak, but you
also ensure that risk/reward will be favorable for the piece of the trade that
you’re adding.
What this suggests is that it is important to be right in the markets,
but it is even more valuable to know when you’re right. Very successful
traders, I find, press their advantage when they know they’re right,
and they’re good at knowing when they’re right. This means that they are
keen observers of markets in real time, able to assess when their trade
ideas—their hypotheses—are working out and when they’re not. They are
good traders because they’re good managers of their trades.
Your assignment for this lesson is to assess your trade management as
a separate profit center. Do you scale into trade ideas? Do you act aggressively
on your best ideas when you are right? If you’re like many traders,
this is an underdeveloped part of your trading business. It may take a return
to simulation mode and practice with small additions to trades to cultivate
your trade management skills. It may also mean that you structure your
time while you’re in trades, highlighting the information most relevant for
the management of your particular idea. Most of all it means cultivating
an aggressive mindset for those occasions when you know you have the
market nailed.
As your own trading coach, you want to make the most of your assets.
It’s easy to identify traders who exit the business because they lose money.
It’s harder to appreciate the equally large number of traders who never
meet their potential because they don’t make the most of their winning
ideas. A great exercise is to add to every position at least once on paper
after you’ve made your real-money entry. Then track the execution of your
added piece, its profitability, the heat you take on it, etc. In short, treat
trade management the way you would treat trading a totally new market,
with its own learning curve and need for practice and feedback. You don’t
have to be right all the time; the key is to know when you’re right and make
the most of those opportunities.
Long term survival comes down to trade management in my opinion, and is where most of my energy is focused nowadays.
Rule number one in the markets is to never lose money. Well since that isn't realistic, I say if you're going to lose some money anyway then lose small, but when you win, give it all you've got and win big!
