Get Funded Faster by Topstep with its new rules.
Topstep gives us more freedom and shorter challenges.
So you might now be funded in a shorter time by Topstep; but make sure to follow the brand new Consistency Rule.
While Phase 1 of the evaluation program maintains the “5 days minimum of trading” rule, this has been removed for Phase 2 (which had a minimum of 10 days of trading); but no, you cannot be funded in just 1 day in phase 2, but 3, and maths will explain why.
What about this consistency rule then?
First of all: it applies only to Phase 2 and the Pro Account.
You’ll probably agree that a growing steady equity line is proof that a trader is performing well.
The Consistency Target defines that your best day of trading cannot be equal to or larger than 40% of the total profits in your challenge.
Earn2trade has had such a rule for quite a long time now, it’s basically the way the Funders have to protect themselves from funding a trader who may have just got lucky.
How can I calculate the maximum profit from a trade?
Let’s start with what you know so far: the size of the account you’ve elected to trade and the profit target; now: 1 profitable day shouldn’t surpass 40% of the total in profits.
So, supposing you are enrolling in the Topstep 100K program:
- the profit target here is 6000$.
- 40% of 6K is 2400$.
The formulae is 6000*40/100
You now know that any trading day shouldn’t surpass 2400$ in profit.
If you have a day with higher profit, let’s suppose 3000$, then your new profit target to obtain capital to trade becomes: 7500$
the formulae is : 3000*100/40
To scalp or not to scalp?
Topstep removed the rule whereby you should have avoided to hold trades for less than 20″; no more than 50% of your profitable trades were allowed to last less than 20 seconds.
While this is not a rule anymore, so you won’t fail the evaluation program if you brake it, Topstep will communicate directly with the traders that have a tendency for brief trades, hence I’m afraid that scalping is still off the book with Topstep.
Research the evaluation programs by Topstep and grab yourself a juicy -20% discount.
