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April 20th, 2016 | Step 1

Lesson 5 Chapter 1

Combine Objective Achieved


These are the words that all TopstepTrader (TST) hopefuls want to hear.  Today we completed yet another TST combine in the minimum allowed time of ten (10) trading days.  Today’s tick count, which I will detail later in the post, was 65 ticks.


This marks our fourth combine that we have completed, in front of a live trading audience, since we became the lead oil educator for TopstepTrader.  The main driving force behind establishing our partnership with TopstepTrader was to assist OTG room members in realizing their goals of becoming fully funded traders.  Our last trading combine ($150k) was completed on January 29th, 2016. 

$50,000 Combine vs. $150,000 Combine

The main difference between the two combines (other than the obvious) is that the drawdown threshold is much more aggressive on the $50k vs. $150k.  Specifically, your max drawdown on any given day on the $150,000 combine is $3,000 vs. $1,000 on the $50,000 combine.  The bottom line reality here is that you cannot be as aggressive on the smaller combine account.


I specifically chose this trading combine because of the tighter risk parameters.  A considerable number of the traders with whom I come into contact, would be considered by most measurements, under-funded traders.  The problem with being under-funded (and there are many) is that a person comes into this (or any) trading room with unrealistic expectations about making $1,000,000 in 10 days and then is surprised when they blow out an account.  The reason for blowing out their is that they are over-leveraged and are not focused on proper risk management.  But, as they say ” this is a topic for another post”.  Suffice it to say, we chose the smaller account size with the tighter drawdown so that we could show you how our tools can be used day in and day out to take a conservative, $300 per day average out of the market.

Funded Trader Prep (now called Step 2)

The next step in becoming a fully funded trader with TopstepTrader is a process called Funded Trader Prep.  I will be going through that process in front of the live trading audience starting Thursday.  I will go into more detail about Funded Trader Prep and the rules, in a post later this week. 

Combine Objective Achieved – The Numbers

Summary:

  • Combine objective achieved ($3,000) without hitting the max drawdown of $1,000
  • 90% winning days.
  • Winning trades outpaced losing trades 67% to 32%.
  • Profit factor was 2.4 greater wins than loss.




The Oil Trading Group. (“OTG”) does not hold itself out as a Commodity Trading Advisor (“CTA”). Given this representation, all information and material provided by OTG is for educational purposes only and should not be considered specific investment advice.


CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.


Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance trading results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.


Risk Disclosure

Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones' financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not indicative of future results.

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