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3 Rule Changes for Our New CME Micros Trading Combine

Posted by TopstepTrader on October 09, 2019

TST Stock-31

A brand new product deserves a brand new set of rules. Therefore, we are using a different set of evaluation criteria for the CME Micros Trading Combine we released today. We designed this new Trading Combine to appeal to swing and position traders, and the new rules reflect this. We highlight the rule changes below, what they mean, and why they're important for your trading. Dan Hodgman even makes an appearance to breakdown the opportunity in detail. Trade well!

 

 

Old Rule: Only trade during permitted times

New Rule: Hold trades as long as you like!

What it Means:

In the new CME Micros Trading Combine you can hold positions indefinitely
You can keep trades overnight, through the weekend, or even through a Fed announcement (though we probably wouldn't recommend it)

 

Why it is Important:

Allows you to scale into longer-term swing and position trading strategies
You don't have to monitor markets 24/7 to make responsible trades 
Get out when you want to, not when you "have" to

 

Old Rule: Do not hit or exceed the Daily Loss Limit

New Rule: Do not hit or exceed the Weekly Loss Limit

What it Means:

In any given trading week your Net P&L can not hit or exceed the allowable weekly loss of $500
If this Weekly Loss Limit is exceeded your current CME Micros Trading Combine will not be eligible for funding

 

Why it is Important:

Adhering to a loss limit instills discipline and proper risk management
At some point you need to call a bad week, a bad week (we all have them)
It allows you to live to trade another day, the markets will still be there
Losses can be emotional, emotions affect decision making

 

Old Rule: Do not allow your Account Balance to hit or exceed the Trailing Max Drawdown

Rule: Do not hit or exceed the $1,000 Max Drawdown

What it Means:

Your CME Micros Trading Combine account balance can not drop below $9,000

That's it! There is no "Trailing Max Drawdown" in the CME Micros Trading Combine, only a Max Drawdown and Weekly Loss Limit

 

Why it is Important:

You need to learn to preserve capital if you want to be successful
Longer-term strategies may have larger swings, this is why there is no "Trailing Max Drawdown" 

 

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Topics: Equities, CME, Micros

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