So I decided to try the Topsteptrader challenge which they call “The Trading Combine®”. The idea is to complete the challenge in profit (also not incurring a daily loss of $1,000) and without breaking the challenge rules. Once successfully passed the two evaluation steps. I will be given the opportunity to get funded account to trade with, which is the main idea behind completing the challenge. And it is 80/20 profit split where I will keep the 80% and Topsteptrader will retain the remaining 20%. Also for this challenge there is no deadline or time limit.
Account Size
First I have to signup the account size I choose. So I chose the $50k starting balance which cost me about £100 after the surprise discount at the checkout (although it said £133).
After I signed up I was given the real-simulated account on my chosen broker –Tradestation which is one of the Topsteptrader recommended 3 brokers.
First CME contract
Then I placed my first buy order of 1 contract on Chicago Mercantile Exchange (CME) Futures Contracts (forgot which contract it was). After a less than hour or so I was up $250 but after dropping to around $160, I had to sold the contract (exchanges are in $). I thought that was not bad.
Not permitted
Then the following day, about in morning, I got an email from Topsteptrader saying I traded the wrong product that was not on their permitted CME contracts list and that I had broken the rule. This meant that the challenge now was invalid. I will not be able to pass the two evaluation steps. And therefore not getting funded account.
Back to reset
I had to restart the challenge again. Luckily, they got me another 70% discount and had to pay just about £40. After that my challenge account was reset and I was ready to do the challenge again.
So this time I looked carefully on the allowed CME future contracts and chose 4 futures that I would trade specifically in upcoming trades. They would be E-mini S&P 500, Natural Gas, Gold, and Crude Oil.
From green to red
- On 4 May, I short 2 contracts on Gold and in less than hour I was up $1,056.30. I thought this was great and closed the 2 contracts and decided to call it a day with just 1 trade.
- On 5 May, I was down -$434.80.
- On 6 May, up $138.60.
- On 7 May, With a loss of -$1,030.40 for the day, I was out of the challenge for the second time – I exceeded the maximum $1,000 daily loss limit and I blew my account. See below.
Trade Recap
Quick run down of what happened on loss of -$1,030.40. It was all bout trading psychology mindset. I was placing 2 and 3 contracts on each trade trying to scalp (quick profit with quick in and out). I was not following the strategy that I have had. In essence, I was impulse trading, meaning trading without plan and proper thought.
Back to reset 2.0 ?
Of course the following day they sent me an email to reset again if I want to do it. Will I reset my challenge account again? Perhaps I would again. But this time it will cost me another £80. And I do not have any spare £80 left. I will contemplate on this and come with another plan when I have.
