![]() ![]() If Topstep identifies trading activity that, in its sole discretion, relates to Prohibited Conduct, Topstep reserves the right to, delete the trading day and all profits, restart the account or close the account. If he needs more days, then he can purchase an Extend.To mitigate Prohibited Conduct, gambling behavior and exploiting the simulated environment, all trading accounts that have any trade day that exceeds 200 total contracts will be subject to review by our Risk and Compliance Team. Although he will only have the days remaining from his initial purchase - John will have until July 5th to reach the Profit Target. This saves John from having to pay the full amount to retry the Challenge. If on June 12th, he breaches his account, but thinks he can still make the Profit Target by July 5th, he can Reset his account and start from scratch while keeping the time remaining on his account. John purchases a 30-day Challenge on June 5th, this means he has until July 5th to complete the Challenge. You can Reset your account as many times as you like. The only way to add more days to your account is through our Extend option, or by purchasing a new account. You will continue with the same amount of days remaining. Remember that only your balance will reset - not your remaining days for the Challenge. In that case, instead of purchasing another Challenge at the full price, we provide you the option to Reset your account for a lower price. Suppose you have breached your account or are off to a bad start but know that you have what it takes to complete the Challenge. This can be found in the features of each Challenge. *The HWM is based either on Open or Closed Trades, depending on the Scaling Plan. *Please note that commissions for executing trades will be included in your P&L. The highest point of your equity after closing trades reached an all-time high of $153,000, which the system registered as your High WaterMark level. Max Trailing Drawdown limit (Closed Trades)= High WaterMark Level (Closed Trades) - Max Trailing DrawdownĮxample (Closed Trades): You are in Phase 1 of a Scaling Plan. The Max Trailing Drawdown for the Challenge is $3,500. The Equity reached an all-time high of $152,000, which the system registered as your High WaterMark level. Max Trailing Drawdown limit (Open Trades)= High WaterMark Level (Open Trades) - Max Trailing DrawdownĮxample (Open Trades): You are in Level 1 of a Scaling Plan. You can manually calculate your Max Trailing Drawdown Limit by doing the calculation below: Your Max Trailing Drawdown limit should be visible on your Dashboard. Thus, $151,000 minus our maximum loss limit of $5000 for that Challenge, would set his Max Trailing Drawdown at $146,000.Īll the above information is available in detail on your Dashboard. If John had purchased a Challenge which is based on Closed trades and has a maximum loss limit of $5000, then in the same above scenario our system would register his High Watermark as the Current Balance at $151,000, where he closed his position and took the $1000 profit. Keep in mind even though he closed his position at a $151,000 balance since the particular Challenge is based on Open Trades, the system registers the highest equity your account has reached and is called your High Watermark. If John was to open a position and reached a $2000 in unrealized profit, but then closes the position at only $1000 profit, then our system would record the highest point his account had reached, which in our case would be $152,000 (equity). This essentially means your account cannot drop below $146,500 at any point throughout the challenge, otherwise, it will be considered a breach of our rules, and your account will be automatically closed. Starting with $150,000 in Current Balance & Current Equity, your Max Trailing Drawdown is set to $146,500 as we provide you a maximum loss limit of $3500. John purchases a Challenge which has a Max Trailing Drawdown based on Open trades. The current balance and current equity will be the same if you do not have any open trades. As you can see, this is a trailing drawdown, which means each time your current equity/ balance reaches a new peak, your drawdown limit will also trail and rise with it.Ĭurrent equity = current balance + /- profits or losses from active (open) tradesĬurrent Balance = balance +/- profits or losses from closed trades Max Trailing Drawdown refers to the maximum loss your account can suffer overall during the course of the Challenge you are undertaking. ![]()
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