Trade for a minimum of 5 days (days don’t have to be consecutive) without breaking any rules and achieve the profit objective of your selected Trading Combine.
The fact that the rules are restricted to makes this initial step simpler to complete the process for starting the trade.
Gain the desired profit and trade for at least five days.
Let’s say you select with an account having starting balance of $50,000.
- You should trade 5 days a week
- Additionally, all you need to make $3,000 goal (no time limit)
- Five contracts at most can be traded at once.
- The maximum daily loss is $1000.
- The maximum weekly loss is $1000.
- $2000 is the trailing maximum drawdown.
Why is step one useful?
You demonstrate to the company that you execute consistently and are knowledgeable about your job. You can use your strategies in a variety of market environments.
To have different thresholds, one must select a different beginning balance. It is crucial to carefully choose the proper plan. Finally, if you follow the guidelines and make the desired profit, you will have completed the initial step.
Trade Combination Phase 2
“TopstepTrader Funded Trader Preparation” was the previous name for phase 2 of the Topstep Trading Combine.
- After you’ve finished the first step, the account will be examined after your transaction reports—which will be due at 4 PM CT—have been uploaded. If TopstepTrader emails you to confirm that it is live.
- The Trading Combine’s second step is where everything is reset. If you want to begin with a $50,000 balance, then you must:
- Achieve the $3,000 profit target (the best day cannot account for more than 40% of total income).
- The daily loss cap is $1000.
- The weekly loss cap is set at $1000. (The rule is in effect until the beginning balance is reached by the trailing maximum drawdown)
- Trading is not allowed when there are important economic announcements.
- The scaling plan states that beyond the initial maximum of two contracts, the number of contracts you can trade at simultaneously increases as there are more funds in your account.
- The maxi drawdown is $2,000 in value. Therefore, if your account balance is $50,000 at the start of the day and falls to $48,000.
- Your trailing stop loss is $2000 lower at $53000 if the price opens at $55k the following day, and so on.
Frequently asked questions:
Are there requirements to be a proprietary trader?
Becoming a prop trader does not require a degree or any special credentials. Private trading companies typically do not have stringent criteria for paper credentials. Instead, they seek diversity in a team, where each member frequently has a unique history and set of skills. These were the basic Requirements to become a prop trader
How can I start exchanging props?
There are numerous ways to enter the prop trading market. The first choice is to look for a respected prop trading company, apply, and, if hired, begin an internship. If not, you can get a funded trading account by using a reputable online prop trading service like HowToTrade.
What does proprietary trading serve as?
The essence of prop trading for financial institutions, fund managers, and individual investors is to use the capital and other technology resources of the organization to carry out an overall successful balance sheet. They don’t have any customers, and their only objective is to make money. This is how prop trading is done.
According to exchanges & financial market regulators, the goal of proprietary trading is to increase market liquidity and create a functional market. Because of this, a lot of prop trading companies get monthly refunds from exchanges that are proportionally distributed to their prop traders in exchange for increasing market liquidity. Thus cleared what is a prop trader and how it serves.
What distinguishes a private trading company from a hedge fund?
The main distinction between an investment firm and a prop trading company is that the former uses the money of investors to make money, while the latter uses its own funds for trading and investing.