Summer trading is usually a grind. Not this year. At least that's not what we're expecting. Between the interest in markets spurred by the surge in volatility that started in February, important trading levels (like new highs in equity futures, and grains markets hitting their peak, the Summer of '18 may present some great opportunities to profit trading. Here's how.
Why is the Trading Combine® important? And how can it help your trading?
You may know that the Trading Combine started when Michael Patak lost $90,000 in three separate trading accounts. It was only after he put rules around his trading and learned to execute a strategy in a simulated trading environment that he became successful.
Those rules became the basics of the Trading Combine. In this week's Coach's Playbook, the coaches talk about why the Trading Combine is important to develop consistently profitable traders and how it can help your trading.
Congratulations - you passed a Trading Combine®. Now what?
For anyone that has been in Funded Trader Preparation™, you know that now is when the real work starts. The TopstepTrader program is based on finding consistently profitable and risk-minded traders. That's why there are two steps. And why the rules in Funded Trader Preparation get a little more specific.
So, for starters, you'll want to know the new rules - and track them every day: (1) there's a Weekly Loss Limit that matches the Daily Loss Limit on the account; (2) there's the scaling plan to start you off small and work into larger trades; and (3) you have to be flat for major economic releases that pertain to your product.
In this week's Coach's Playbook, our coaches outline what you'll want to watch out for when you pass the Trading Combine that impact your practical trading, as well as your mental game.
The Performance Coaches traded for the first time in a few days, losing $166.18 going short the Emini S&P 500 ($ESZ7). Because their Trading Combine® is nearing the Max Drawdown, which has trailed to $48,997, the Coaches are being cautious.
This is a point where many traders in the Trading Combine might take more aggressive trades. Not only are the Coaches hoping to show good risk management, but they also know that the best way to recoup gains is to stick to a strategy and focus on base hits. One or two good trades will get them back to breakeven.
Here's a closer look at the trade that they entered today.
The Performance Coaches gave back $423.54 to the market today, bringing their balance to the closest its been to the Trailing Max Drawdown. That stands at $48,997 - just 305.77 away from today's closing balance.
Here's how they plan to get back towards the positive.
This was the Performance Coaches' most challenging week yet in their Trading Combine®. They gave $857.84 back to the market - lowering their balance to $49,726.31. That puts them $273.69 under their initial starting balance and $729.31 away from their Trailing Max Drawdown.
Here's their weekly video recap where they discuss what they did right, what they're struggling with and where the challenge stands.
After taking yesterday off, the Performance Coaches bought the Emini S&P 500 ($ESZ7) early in today's trading session and rode it for a $400 winner. That brings their balance to $50,204.71.
While we could go over that trade - which was helped by euphoria about a U.S. tax reform package - we instead want to focus today's blog on a lingering question out there.
We've gotten a lot of feedback about the Performance Coaches' Trading Combine®. Most has been positive reinforcement thanking the Coaches for demonstrating good risk management principles and showing a disciplined approach to trading.
Others have asked whether we regret starting the public Trading Combine given the fact that we are approaching two months in the challenge without meeting our profit target. The short answer is that no, we don't regret it.
This was a rough day for the Performance Coaches. There's no sugar coating that. The Coaches' Trading Combine® is now at $49,808.39 - roughly $810 away from their Trailing Max Drawdown. After a great streak during October and the first week of November, the Coaches have given back $1,189.02 in the past four days they've traded.
During this stretch, the Coaches have only had one winning trade out of 14. If that's the case, you can have the best risk / reward ratio ever, but you won't make money.
Here are three things the Coaches are doing to shake themselves out of this losing streak. The next time you find yourself in a losing streak, here's your roadmap.
The Performance Coaches gave back $370 in their Trading Combine® challenge today after they were stopped out twice on Crude Oil longs. The second was perhaps the most painful - as the Coaches were stopped $0.01 above the daily low.
That is painful. But objectively (and discounting the $150 they lost), it was a good trade. Perhaps $0.02 too early - but it was a valid trade.
Traders tend to love volatile markets - the up and down movements create opportunities. But such was not the case for the Performance Coaches today, who lost just under $100 total after three trades.
The Performance Coaches jumped into a long S&P 500 early in the morning, looking for support ahead of the Weekly Kickoff low at 2575. But, they jumped in a little too early and put their stop a little too close - causing them to get stopped out of a long they initiated at 2579.25 for a 4.5 point loss. As prices stabilized, they reinitiated that trade, buying back at 2575.75 - riding that to 2580.75 for $250 in gains. That gave the Coaches roughly $20 in profits on the day.