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I just recently joined futures.io (formerly BMT) and I have followed your journal with interest. I quoted one of your earlier post here because I have the same question regarding the Max Drawdown. I am currently in a combine and I have worries about hitting the MD number soon and this has caused me to be overly careful and not making needed profit progress. Before I signed up the combine, I confirmed my understanding of this number with TST, which is that it is the End of Day number. This makes a very big difference from max drawdown during the trading day. In other words, it is ok if you temporarily dip below -4500 (assuming not exceeding daily loss limit of 3000 for 150k acct) realized or unrealized during the day, as long as you bring the number up to within 4500 by the end of day.
I read again the combine agreement TST sent me, it says I must not exceed 4500 max drawdown at any time during the combine, which seems to me applying to during the day as well, not just end of day. I wouldn't say this number is super clear to me. What is your understanding? Many thanks.
Email support at TopstepTrader.com to get an official answer, but I think it's an end of day limit.
But MsFutures, you say it's been causing you to be overly careful, but that does not seem to be the case if you are knocking on the door of the max DD. If you were being too careful perhaps you would have small profits and small losses, but that does not sound like its the case.
Yes, I believe it's end of day from what I understand.
Also, don't become "overly careful" trade your plan, and if it works that's great, if it doesn't it's no reflection of your self-worth. Simply adjust and keep improving.
Not trading today, just doing some stats work and such. I now have a full 10 sessions of data for ES trading.
I whipped up a cumulative MAE/MFE trade analyzer data sheet that accounts for things on an actual $ value.
Here's the comparison of the two side by side. As you can imagine, the $-based one simply accounts for fluctuations in position size. Notice the difference in running $ p/l vs running avg ticks per contract p/l. It also points out that excessive risk I took on the trade a few days ago (the 27th).
Thank you for your reply. I asked the questions regarding daily loss limit and max drawdown in an email before I started the combine. I tried to confirm my understanding of the numbers: according to the website, Daily Loss Limit refers to REALIZED NET P/L at any point during the trading day --- this means to me it is ok to have open positions' unrealized net P/L to exceed daily loss limit, as long as when you close positions or realize the P/L, you bring it back to within the daily loss limit. As to the Max Drawdown, the website says it clearly that it refers to the EOD number, which like I said would mean it is ok to dip below the number as long as you you bring it back by EOD.
However I did not get an email answer, which I had hoped for because I would like to see a black and white answer definitely saying it was ok for the "dipping below" scenarios. I got a call from a scout. He would not specifically address the "dipping below" situations, I guess it was smart for him to do so, as they would not encourage "such behavior" even if technically it is ok.
But my understanding of the daily loss limit was wrong. He said the number refers to any time during the day, even for unrealized net p/l and agreed that the website's using the word "realized" could cause confusion. As to max drawdown, we agreed with each other.