Becoming A TopStep Trader 2020

Okay, so I have been around the block, I have traded my own money and other peoples and now I am going to see if I can get through the TopStep Trader Combine.

For the first Step I am only going to trade E Mini SP, with up to 5 Lots.

#Day 1

I need to generate $3000 in a minimum of 5 days.

Going to take a while to get 6% if I close out for Break Even
FOMC meeting minutes and my idea of fading the market run up - pre data didn't work out

Decided on a change in the strategy - the futures contracts are a lot more expensive than trading forex, so my precision entries need to be on point every time.
To get more precision I may also need to take profits quicker as currently, my SL gets to Break Even at 12 ticks or 3 points and the number of times I get stopped for BE is not doing the account or my trading plan any good. Maybe better to get to BE later but take 1 contract off at 12 ticks and let the other run. My problem with that in the past was the full stop out is obviously more than your average initial win. Unless I can get the SL's to just a point or so.

So down to the 1-minute chart for entry and exits

H4 for trade setups

Manually move my SL when trend is in play, volume backs up the new move

Today the ES, RTY etc. all started limit down. oil tested the open and euro made a little run up that I could catch.
1 more day to go and on to Step 2 assuming I can get in and out and stay above the target level.

made it through Step 1 (eventually) - going to work on reducing the number of trades per day and as it is to be traded over a longer period - start to journal using the Top Step Trade Reports

Step 2 to begin tomorrow

Congratulations on progressing to Step 2!

In addition to the rules you successfully followed in the Trading Combine Step 1, there are three new rules for Step 2 to confirm you can manage risk and that our capital will be safe.

• Rule: Follow the Scaling Plan

• Rule: Do not hold positions into major economic releases

• Rule: Do not hit or exceed the Weekly Loss Limit*

https://app.topsteptrader.com/refer/sign-up/7df36d

It's been a crazy time to attempt this funded account program. Having attempted to transfer the forex over to the futures I have now decided not to trade anything with very low volume - there just seems no point. However, in the futures markets, the Crude and Russell2000 are manageable even within the most volatile time since September 2001.
Maybe when the VIX gets back down to the lowly levels of sub 20 will things feel normal again in the markets.

if i burn a trade tomorrow Friday (NFP) and Monday next week, I will be a funded Top Step trader By Tuesday 7th April.


Now you may be thinking why burn a trade for the next 2 days when you could have been doing that for 9 days after making $5646.80 on day 1 and could have easily opened and closed a trade for 9 days and still got to the same point in time with the same result.

I gave myself 4 days (which ended up being losses) to see if I could make the opening range trade work consistently. Unfortunately, it can not and now when I go into my live account I know not to trade it until the volatility drops. Think VIX below 20
So those 4 days of losses were me , giving myself 4 last chances at testing an idea and now I will just have to put it to bed and forget about it.

Other trades that don't work are end of day trades going into the fix. Random trades based around psychological levels.

When I pass and become a funded trader - i'll start posting trade results on the charts. and open up the comments for all.

Finally got to the end of the Trading Combine.



The Pro Account offers the cheapest solution to building an account, so I will probably go that route.

So, while I wait for the new account to be created for me I should probably list everything that I did well or could have done better.

Over the course of 6 weeks, I have had a quick intro into Futures trading. Never traded them before, didn't have a clue about how they differed from contract to contract, had no real idea of what would suit my personality and risk tolerances. Plus, we have just gone through possibly the worst period in trading anyone has ever seen in living memory, with the equities jumping from Limit Down to Limit Up or the Oil markets cratering too levels which would indicate the world is in a bad place.

Today PM Boris Johnson was admitted to the ICU with COVID-19 as were many other not so lucky people. Today I am grateful I have my health and my family is well too. I am grateful for the opportunity to trade and use my skills to hopefully provide an income for my family when so many people will be financially crippled. I am all to aware that this is an opportunity and not a golden ticket and now the real work begins.

Things I should avoid doing in a live environment.

1. Hitting Home Runs - the market will not always provide an opportunity to make 20 points, be happy with 2
2. Over Trading - the markets are nearly here every day Monday to Friday, with the exception of holidays. There is no reason to sit at the computers during times of no movement. Wait for the US open and trade with the rest of the Futures Markets. Make your money and go, turn the computer off, do something else.
3. Entering A Settlement - the idea of using the spike in volume was appealing but getting trapped in a sudden departure of liquidity and movement, with only a short time left before having to close out, seems like a risk not worth taking.
4. Entering A Breakout of the Opening Range - it was awesome when it worked, I made many many points, however, when it doesn't the opening range doesn't allow for tight risk controls, especially if the range is several points wide. A significant level could offer S/R but a breakout and the SL distance is the key part to risk control.
5. Falling Asleep - don't trade just as you are getting tired. Accidently clicking the button on the DOM and realizing that you are in a trade is an awful mistake and one I am glad I made in demo.
6. Giving up profits - partly down to over trading, if I can stop over-trading I shouldn't ever give up the profits. But greediness is the killer. Seeing profits disappear and then wanting to get them back. Just be happy with the money you make on the first couple of trades and then move away.
7. Stick to the key levels - trading in between the levels just opens up a can of worms. Use the levels to define the risk and price action will help there too.
8. Risk to Reward - 1:3 minimum, though I am happy with a Break Even too.
9. Keep Everything Very Simple - keep the charts simple, the setup simple, the risk management simple, the profits will follow
10. Don't scale up and then forget to go back to 1 lot - trading more than the permitted lots is a no-no. I failed a combine because I was practicing with 3 lots and forgot to keep tabs on how many I was allowed to trade at any one time. Sooo annoying.

This is the chart layout I settled on -


What I get from this chart is

1. Significant Levels to trade-off
2. Clear price action
3. Confirmation that the probability of an acceleration in my trade direction is more likely than not
4. Take profit levels

What will I be trading?

 

1. CL - oil
2. NQ - Nasdaq 100 E-mini
3. ES - S&P E-mini
4. RT - Russell E-mini

I will be risking $200 - with a reward of $600 ideally

 

1. CL = Risk 20 ticks = 2 points
2. NQ = Risk 40 ticks = 4 points
3. ES = Risk 16 ticks = 4 points
4. RT = Risk 40 ticks = 4 points

Had to break my duck - luckily or more importantly not luck but trade plan wise, I am glad the first trade is a winner.
Maybe I got the SL too tight too quickly but $275 in 2 minutes is enough and now I am writing this to let the adrenaline ease.


If I get to $5k profits TST move me over to a funded ProAccount - alternatively I can ask to be moved at any time up until the $5k profits are reached.

Busy day today


In reality, if I were to be 100% honest with myself, over trading very rarely helps. However, I felt that I was in some sort of groove, so went with it.
Looking back at the trades, it's obvious that I 1) added to a loser, which I shouldn't have done. 2) couldn't mitigate for a sideways move. 3) the positives were that I held on to some winners for longer.

Tomorrow, I am going to try and do 1 good trade and then take the weekend off from the screens.

Just a quick illustration of how an idea, even though right began with a DD.
Got to BE+1, full stop out Got to BE, Got to BE

Kept checking the higher time frames, to see if I missed anything



Held on for the logical profit target level.

Then I watched my trade idea go down another 20 points.

SO even though I held on for a winner. I missed out on another potential $1000.
But I stuck to the strategy, I also closed out the day with all these profits so it's still a win win. With very little stress.

Trading is very boring today - almost feels like the Sell in May and go away has been taking literally
Still patience and a plan is what is needed.