How This Funded Trader is Profiting with Just 31% Winning Days

Posted by TopstepTrader on April 04, 2018

For years, Bob R. (Viroqua, Wisconsin) says he was like Jim Carrey’s character in Liar Liar. He would beat himself up whenever his trades went the wrong way. But even when he was struggling, part of him knew he would be a better trader if he could just change his mindset.

That realization led Bob to work on his attitude and stop trying to be right all the time in his trades. Now, Bob is comfortable being wrong — so long as it's not at the expense of being profitable.

Since earning a Funded Account™, Bob has only been profitable on 31% of his trading days. And he’s profitable on just 40% of his trades.

Those are stats that would sink most traders, if not for the fact that the magnitude of Bob’s wins are much larger than the magnitude of his losses. Bob’s average winning day is 3x the size of his average losing day, and his largest winning day was nearly 5x his largest losing day. With that, Bob has turned from a trader that struggled into one that embraced losses and found a way to be profitable. Here’s his step-by-step guide to making that transition.

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Topics: TopstepTrader Funded Traders, Success Stories, Trading Lessons

‘You Have to Do Your Homework,’ Says Funded Trader with $4K in Withdrawals in 13 Days

Posted by TopstepTrader on March 26, 2018

Like any trader, Mohammad A. in the United Arab Emirates has seen good days and bad. Since earning a Funded Account™, however, Mohammad has put together some impressives stats. In 13 days trading live with our capital, Mohammad has already withdrawn $4,000 in profits.

But that doesn’t mean he has everything figured out. Mohammad’s average winning trade is slightly less than his average losing trade ($135.36 vs -$147.38) — a statistic that he will work on as he looks to improve his consistency even further.

We talked with Mohammad to find out how he managed to get off to a quick start and how he plans to keep building on his success.

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Topics: TopstepTrader Funded Traders, Success Stories, Trading Lessons

Two Amazing Trading Lessons from “the Cal Ripken of Hedge Funds”

Posted by TopstepTrader on March 13, 2018

Comparing a trader to a baseball legend may seem odd at first. You might be more likely to look for an athlete known for flash, like Michael Jordan, or aggressiveness, like Mike Tyson. However, the aide who described hedge fund manager Monroe Trout in The New York Times as “the Cal Ripken of Hedge Funds” couldn’t have been more right.

Much like The Iron Man set the record for consecutive games played, Trout never missed a day in his 15+ years at the helm of Trout Trading. But showing up is a just small part of Trout’s story. These stats tell the rest:

  • In one five-year period, Trout was profitable in 87% of months.
  • His average annual return during that period was 67%, while his largest drawdown was just 8%.
  • In all months, Trout Trading never had a losing year and posted an average annual return of 21.5%.

Trout’s return/risk measurements are extraordinary, but his methods for achieving them can be followed by any trader. Let’s take a look at a few tactics you may be able to emulate.

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Topics: Trading Basics, Trading Lessons, Market Wizards, Forex, Futures, Monroe Trout

5 Can’t Miss Posts from February

Posted by TopstepTrader on March 06, 2018

Volatility was the name of the game last month. Big swings may cause a few sleepless nights and anxious days, but they can also be profitable if you’re prepared. A robust risk management plan is the key to navigating the market’s sharp turns. Let’s take a look at some of February’s blog post that can help you get ready for the next wild ride.

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Topics: Trading Basics, Trading Lessons, Forex, Futures

Racking Up Four $1K+ Days in February: 5 Questions with a Funded Trader

Posted by TopstepTrader on March 05, 2018

Melissa M. from Stillwater, Oklahoma doesn’t fit the stereotype of a trader. When she started trading back in 2010, she was a single mother with two young children, a full-time job, and a degree in microbiology.

At TopstepTrader, she found a way to explore her passion for trading. Now she’s putting up numbers other traders would envy. Just last month, Melissa posted four $1,000+ winning days, including a three-day streak where she gained $2,829. She hasn’t yet withdrawn from her Funded Account™, but she sitting on a very healthy account 24 days in.

We caught up with her for an interview to talk about how she did it — and why she believes she is more successful trading live now than in the past. 

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Topics: TopstepTrader Funded Traders, Success Stories, Trading Lessons

Tejas from Vancouver Earns a TopstepFX Funded Account

Posted by TopstepFX on February 28, 2018

February has been an interesting month for trading. There was a brief melt-down in equity markets, causing the U.S. Dollar to (at least temporarily) halt its downtrend. 

Tejas from Vancouver has capitalized on that environment to earn a TopstepFX Funded Account. But in talking with him about what made him successful, his perspective proves that trading forex is no different than trading futures: good trading is good trading.

Tejas’ keys to success are similar to what we often hear from successful traders: he started focusing on the actual market trends and became obsessive about his risk management. Here's how he earned his Funded Account.

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Topics: Success Stories, Trading Lessons, Forex, TopstepFX Funded Traders

This is How You Avoid Trading on Tilt

Posted by TopstepTrader on February 19, 2018

Let’s say you’ve done everything right. You know your entry and exit points. You’ve got your stop losses in place. Then the markets open, things don’t go as planned, and you start to lose.

For most people, this creates an immediate and unpleasant physical response: sweaty palms, rapid breathing, and increased heart rate. But the worst part may be how the sudden upsurge of emotion seems to eliminate your ability to think clearly.

Poker players call that “tilt.” Playing (or in this case trading) on tilt is almost always a sign that a losing streak is on the horizon. Let’s take a look at the signs so you can avoid tilt and the losses that come with it.

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Topics: Trading Basics, Trading Lessons, Forex, Trading Psychology, Futures

Last Week Changed Everything: Here's How You Can Profit Trading This Week

Posted by TopstepTrader on February 11, 2018

This will be known as the week that the volatility complex blew up. Two major short volatility ETFs literally imploded. XIV — Credit Suisse's short-term short volatility ETF — closed on Monday at $99 per share. As the VIX spiked after hours, the product lost 90% of its value to trade at less than $10 at the open on Tuesday. 

The spike in volatility led to a sell off in equities and the emergence of extreme moves in futures contracts. 

Here's what you need to know.

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Topics: Trading Basics, Trading Lessons, Futures

Repeated Failures Made This Trader a Success

Posted by TopstepTrader on February 07, 2018

Does this sound like a recipe for success? 

Get fired from your first job as a clerk at the Chicago Board of Exchange. Get a job as a trader and blow through your stake. Get a second chance and blow through that money, too. Get funded by a friend, but blow through so much of that money they cut you off before you can lose it all.

Probably not, but that’s the early path Larry Benedict took before becoming founder and CEO of Banyan Equity Management, LLC, a firm that managed more than $700 million in assets. Despite his less than promising start, Benedict ultimately strung together an impressive 20 years of net profitability as an options specialist in the XMI index on the American stock exchange for Spear, Leeds, & Kellogg.

You might think the moral of this story is about perseverance, but it’s not. The crux of Benedict’s success was his ability to adapt and learn how to manage risk. In days when market volatility spiked and prices are jumping everywhere, the ability to manage risk is what will keep you in the game. 

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Topics: Trading Basics, Trading Lessons, Market Wizards, Forex, Futures, Larry Benedict

4 Immediate Changes to Make to Your Trading in Higher Market Volatility

Posted by TopstepTrader on February 06, 2018

Futures trading firms have to carry a disclaimer: "An investor could potentially lose all or more than their investment."

While that warning seems overly cautious, on days when the Nasdaq ($NQH8) moves 20 handles at a time, it becomes clear why. Price can blow past your stops. If you trade like it's just any other day, you can lose more than you intend. 

Here are four changes to make to your trading to ensure that doesn't happen. 

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Topics: Trading Basics, Trading Lessons, Futures

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