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My Gauntlet journal

  #141 (permalink)
 RDK91 
Antwerp
 
Posts: 455 since Jun 2016

I think you guys are confusing a trailing draw down to eliminate the account once the DD is hit, like with TST and One Up with a draw down to calculate performance.

E2T has a fixed 10% draw down limit from the initial starting balance, however if you lose money in your account even if you are above 25K you are still in a DD.

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  #142 (permalink)
 
dyst's Avatar
 dyst 
Singapore
 
Experience: Intermediate
Platform: NinjaTrader, Sierra, MT4
Trading: ES, CL, NG, XAUUSD, USDJPY
Posts: 109 since May 2015
Thanks Given: 75
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Not confused. Pretty sure I saw the old Letters had both kind of DD specified in it unless all those were photoshopped lol.


RDK91 View Post
I think you guys are confusing a trailing draw down to eliminate the account once the DD is hit, like with TST and One Up with a draw down to calculate performance.

E2T has a fixed 10% draw down limit from the initial starting balance, however if you lose money in your account even if you are above 25K you are still in a DD.


Numbers work... Magic lies in the numbers
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  #143 (permalink)
oneuptrader
Florida
 
Posts: 47 since Jan 2019
Thanks Given: 25
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RDK91 View Post
In my understanding draw down is calculated from the highest point of your account to the recent low.
So for example if you had a balance of $27500 and you go down to $26000 you then have a current draw down of 5,45%.

Earn2Trade has a 10% non trailing draw down, which means that once you go below $22500 you lost the account and the draw down never rises with the profits you have made.

However to calculate the draw down level over a certain period of time you always calculate from the highest point to the lowest point you then ended up next. This does not affect the shut down draw down Earn2Trade has, which is fixed at $22500, but it does matter to the kind of offer you will receive.

It would absolutely make no sense to only calculate a draw down from the initial starting balance. 4:1 profit to risk just means that your return % is 4 times grater than the DD %.



I see. Yes, that's how I interpreted and it made sense to me


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  #144 (permalink)
MichaelFlowTrader
Atlanta
 
Posts: 152 since Jan 2017
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The change is likely to control risk, to only let conservative traders through, and not to have ppl who get lucky a chance at an account.

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  #145 (permalink)
 RDK91 
Antwerp
 
Posts: 455 since Jun 2016


MichaelFlowTrader View Post
The change is likely to control risk, to only let conservative traders through, and not to have ppl who get lucky a chance at an account.

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Sure, but to calculate the performance vs DD only from the 25K initial starting balance doens't make sence.

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  #146 (permalink)
 
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 dyst 
Singapore
 
Experience: Intermediate
Platform: NinjaTrader, Sierra, MT4
Trading: ES, CL, NG, XAUUSD, USDJPY
Posts: 109 since May 2015
Thanks Given: 75
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I am asking Alex on e2t right now. He says my understanding is correct so far.... it is from the 25k balance, not the highs of the account. I think the reason is to prevent people scalping 1-2 ticks after hitting the 2.5k profit target; seen lots of those in the other props.

Bro, he has confirmed to me. Btw he says he could help check your account if you have any queries

if you want screenshot I can show.


RDK91 View Post
Sure, but to calculate the performance vs DD only from the 25K initial starting balance doens't make sence.


Numbers work... Magic lies in the numbers
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  #147 (permalink)
 RDK91 
Antwerp
 
Posts: 455 since Jun 2016


dyst View Post
I am asking Alex on e2t right now. He says my understanding is correct so far.... it is from the 25k balance, not the highs of the account. I think the reason is to prevent people scalping 1-2 ticks after hitting the 2.5k profit target; seen lots of those in the other props.

Bro, he has confirmed to me. Btw he says he could help check your account if you have any queries

if you want screenshot I can show.

A screenshot would be appreciated, thanks!

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  #148 (permalink)
oneuptrader
Florida
 
Posts: 47 since Jan 2019
Thanks Given: 25
Thanks Received: 16


dyst View Post
I am asking Alex on e2t right now. He says my understanding is correct so far.... it is from the 25k balance, not the highs of the account. I think the reason is to prevent people scalping 1-2 ticks after hitting the 2.5k profit target; seen lots of those in the other props.

Bro, he has confirmed to me. Btw he says he could help check your account if you have any queries

if you want screenshot I can show.

Like I said it made sense the way I first interpreted it. Not saying it doesn't make sense the way that RDK91 stated, but this is an account. Drawdowns happen. You don't want to start losing money taking the account negative. Anything you make is your money. Drawing that down dwindles your profit. That's why OneUp Trader has trailing drawdown. They essentially want you to be profitable but at the least amount of risk to them; therefore, you utilizing drawdown that is in profit puts firm at no risk. That's how I interpreted it.

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  #149 (permalink)
 
dyst's Avatar
 dyst 
Singapore
 
Experience: Intermediate
Platform: NinjaTrader, Sierra, MT4
Trading: ES, CL, NG, XAUUSD, USDJPY
Posts: 109 since May 2015
Thanks Given: 75
Thanks Received: 91

Ok here it is. I even gave examples to clarify. I am putting them all in order:
Eh why the images don't display...?











RDK91 View Post
A screenshot would be appreciated, thanks!


Numbers work... Magic lies in the numbers
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  #150 (permalink)
oneuptrader
Florida
 
Posts: 47 since Jan 2019
Thanks Given: 25
Thanks Received: 16



dyst View Post
Ok here it is. I even gave examples to clarify. I am putting them all in order:
Eh why the images don't display...?








Excellent info Dyst. This now confirms my initial thoughts.

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Last Updated on July 16, 2019


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