1. How much profit you leave in the account is going to vary depending on your strategy and risk tolerance. We have traders who always leave their entire balance in the account and others who take consistent withdrawals leaving only a small cushion. A good rule of thumb is to leave at least the equivalent of your Max Drawdown in profits. So in your example of the $50K account, that would mean leaving at least $2,000 in the Funded Account.
2. While we don't give any tax advice and always recommend consulting a tax professional, we most see LLC's used in the Funded Account.
Hope that helps!
If you have any questions about our Trading Combine or the opportunity to get funded through TopstepTrader, please visit www.topsteptrader.com or contact us at email@example.com or 888.407.1611.
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Right. His email went out 9/29/16, when he said he would be transitioning out of TopstepTrader. I don't know what, if any, role he still plays there, although he said he would "continue working with TopstepTrader on special projects."
But he responded to a post in this thread on 10/11/16 up above, so I wanted to just give the poster the correct reference to his screen name, as well as Michael's ( @TopstepTrader ), just so someone at TST might get the notification and respond.
I'm sure that someone there will. It's a relevant question.
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I am not with TST, but my understanding is that the account is a sub-account of the prop firm's account.
It is, after all, not your account, it's the firm's account that you are trading. The funds you are trading are not yours, they are the firm's.
You are an independent contractor hired by them to trade the account under their supervision. The profits that are due to you are paid according to a contractual agreement you have with the firm. You have no ownership interest in the account at all. This is no different from the arrangement any trader hired by any trading firm would have.
Again, I cannot speak officially for TST, but this is what I have gathered from information on their website and discussions that they have had over a period of time to explain their business.
It is important to realize that this is not a retail account established in your name. It represents a certain allocation of the firm's capital that is made available for you to trade, with a profit-splitting arrangement between you and the firm.
If I got it wrong, or that matter, if I got it right, I hope that @TopstepTrader will chime in.
Last edited by bobwest; October 14th, 2016 at 03:59 PM.
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