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On the TST website it still says that for the funded trading - not for Combine step 1 and 2 - it is calculated intraday. I’m not sure if it’s calculated on realized or unrealized though.
This is what that webpage you refer to says : ‘’ In the Funded Account, this rule is calculated intraday, which means if the balance falls below the minimum account balance you will be pulled from your trades right away and the rule is considered broken.
The Trailing Maximum Drawdown is calculated from your account balance high. ‘’
What is not clear to me though, is wether for account balance high only realized (closed) trades are considered or also unrealized (open) once. If so, closing a profitable trade using trailing SL will still give you a drawdown eventhough you are profitable
It is a little unclear, but using their example from the webpage Tr8ter linked to:
In the Combine Step1 and Step2 what it means with the Trailing Maximum Drawdown being calculated at the end of the trading day is this - Say the Combine starts badly and after a number of days of losses from the account balance at the end of the day is $48,100 ($100 above the maximum drawdown of $2,000 to and account balance of $48,000), then despite only having $100 drawdown available, in reality you can trade that day and could lose the fully daily maximum loss of $1,000 for the 50K account. This is because the drawdown is calculated at the end of the day. So in effect you have one more day to try and make some money back.
For live trading though the Maximum Trailing Drawdown is intraday so in the same scenario if you started that day and lost $100 you would hit the $48,000 account balance limit ($2,000 maximum drawdown), so you might decide at the start of the day that there is no point taking any more trades because if you only have $100 risk before losing the account, then you can't afford the risk of a reasonable stop to take the trade.
There is only one company that I am aware of that uses a Trailing Maximum Drawdown off the intraday high watermark and that is OneUp. So say their trailing max drawdown is $1,000, if you make $1,200 on the day then your trades will be flattened if you give that profit back and get down to +$200 on the day. This is not what TST does. With TST you could go up $1,200 on the day then lose it all and won't get cut off until down to -$1,000. (Earn2Trade use drawdown as a factor in the offer they make if the trader is successful, I don't know whether that is intraday or EOD).
A few people were upset with OneUp because they got caught out by it but my understanding is that if you hit their daily loss limit you don't lose your account, you just get locked out for the day. But on the other hand one could say that if they go up $1,200 then give away $1,0000, that being locked out for the day would be a good thing as clearly they are no longer in tune with the market.
Different firms, slightly different rules. If it is unclear to you TST have an AMA thread on this forum, or email their support and then you will be able to make an informed decision on whether any of the firms fit your requirements, or none of them do.
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
No, it says crystal clear that for a funded - funded - account the dd level is updated intraday.. intra, not EOD.
The only question is based upon realized only, or also based on unrealized.
Your basic example is valid for the Combine, not the funded account
Ok, I've just tried to explain you how the max DD works. (fair TST, unfair OneUp)
Now to this statement: In the Funded Account®, this rule is calculated intraday, which means if the balance falls below the minimum account balance you will be pulled from your trades right away and the rule is considered broken.
I would say nothing can be clearer as that, as soon it falls below the minimum account balance you are out nothing else. No, you cannot try to bring it back during the day, you are out. Read Matthews post!
, this rule is calculated intraday, which means if the balance falls below the minimum account balance you will be pulled from your trades right away and the rule is considered broken.