October 2024 Update: I’ve decided to no longer work with several firms as there are industry regulations coming and I don’t believe several firms will meet the criteria, including this one. I am leaving this article up but all links to to companies I no longer represent will forward back to my main Deals and Promos Page.
You can find more information here: Regulations Are Coming – October 2024 and also find my list of recommended companies that will be compliant.
TickTick Trader has rules related to the end of day drawdown. They called theirs the TickTick Drawdown, but it is essentially an end of day draw down calculation. Read below for more information and an example.
TickTick Trader is looking to build long term relationships with futures traders, and I highly recommend them.
The information below was current as of the time of writing this article. Please visit TickTick Trader and review their help section to verify all the information below is still current before signing up.
TickTick Drawdown – End of Day Drawdown
Introduction
The drawdown is the ultimate amount that you can have your account balance go down before you violate a rule. With TickTick Trader it is calculated at the end of day instead of during the day.
Calculation of the TickTick Drawdown
During the evaluation phase with TickTick Trader your permitted Drawdown will be calculated at the end of each trading day. You can use your Trading Dashboard on Rtrader Pro to keep track of your results. When your account balance reaches a new high at the end of the trading day, the TickTick Drawdown will be calculated, taking into account only the realized profits at that point, and excluding any unrealized profits you may have been aiming for through the day.
Note this is NOT a trailing draw down like most companies use. Your TickTick Drawdown is calculated on your end of day balance.
$100,000 Account Example (Tick Drawdown = $3500)
On your first day of trading you have an open position balance of $100,500. If you were to close your position with $100,000, your TickTick Drawdown at the end of the day would remain $96,500. For example if we were operating on a Trailing Drawdown, it would be $97,000 for that day.
Subsequently, if on your second day of trading you had an open position balance of $100,800 but closed the day with an account balance of $98,000, your TickTick Drawdown at the end of the day would remain $96,500. If you had a Trailing Drawdown, it would be $97,300.
Then if you were to skip your third day, doing no trade at all, the balances would stay the same.
Then on your fourth trading day, if you had an open position balance of $103,000 but you closed with a balance of $100,000, your TickTick Drawdown would remain $96,500. A Trailing Drawdown would be at $99,500.
Having an opening position balance of $105,000 on your fifth day of trading, and closing with $104,000 would leave you with a TickTick Drawdown of $100,500. A Trailing Drawdown would be at $101,500 as well.
This example shows how the TickTick Drawdown ignores unrealized profits, taking into account only the realized gains at the end of the trading day. This is a huge benefit to traders as it gives you more flexibility during the day, and you do not have to micro manage a trailing draw down.
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Risk Disclosure:
Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Hypothetical Performance Disclosure:
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight.
In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.
You can read more here: Risk Disclosure
Affiliate Disclosure:
The external links on my site and in my video descriptions to trader evaluation companies and software companies are primarily affiliate links. I earn a commission from these companies on any sale made from people visiting these links. That said, I only recommend companies and software I personally use and actually do recommend. Believe me, I turn down a lot of companies who approach me. You can read my full Affiliate Disclosure here.
Additional Disclosure:
The content provided is for informational purposes only. I do my best to keep the content current and accurate by updating it frequently. Sometimes the actual data, rules, requirements and other can differ from what’s stated on our website. CanadianFuturesTrader.ca is an independent website. You should always consult the rules, faqs, knowledge base and support of any of the websites and companies we link to or talk about on our site. The information on their site will always be what ultimately dictates the current rules of their program, software or other. While we are independent, we may be compensated for advertisements, sponsored products, or when you click on a link on our website. The contributors and authors are not registered or certified financial advisors. You should consult a financial professional before making any financial decisions.