TopStep Trading Combine Challenge Analysis

What is the TopStep Trading Combine program? How do you get started? Find out here in this expert post.

What is the TopStep Trading Combine challenge?

How do you pass the challenge easily?

This guide will help you all these questions and more.

Topstep Trading Combine Challenge: Rules and Requirements

The TopStep Trading Combine challenge is a dual-phase assessment procedure for traders. Traders must meet profit targets and follow all rules at each stage of the process. TopStep offers three program options: 50k, 100k, & 150k. TopStep does not restrict the number of trading days, however, traders must engage in trading for a minimum of 5 days to qualify for funding. Traders must make sure that their most profitable trading day is not responsible for more than 40% of their entire winnings.

Buying Power	$50K	$100K	$150K
Profit Target (per step)	$3,000	$6,000	$9,000
Max Position	5 Contracts	10 Contracts	15 Contracts
Daily Loss Limit	$1,000	$2,000	$3,000
Weekly Loss Limit (step 2)	$1,000	$2,000	$3,000
Trailing Max Drawdown	$2,000	$3,000	$4,500
Price	$165/month	$325/month	$375/month

The objectives of the TopStep Trading Combine program are simple:

Reach and maintain the goal
The goal is for the best day to bring in less than half of the total earnings.

In order to keep your account open for dealing that day, you must not hit or go over the Daily Loss Limit.

Rule: Don’t let your account balance reach or drop below the Maximum Loss Limit. You’ll move on to the Express Funded Account if you follow these rules and meet and keep the profit goal and consistency target.

TopStep offers its traders access to several robust technologies including TradingView charts and numerous trading platforms. All of this ensures that you get the best chances of passing the Trading Combine challenge.

What are Forex Prop Challenges?

The TopStep Trading Combine challenge is just like any other forex prop challenge. If you’re new to prop trading, this section will help you figure out what these challenges are:

Forex prop challenges are a form of evaluation procedure put up by proprietary trading businesses (prop firms) to find exceptional traders and provide them with the opportunity to trade with the firm’s funds. These challenges are intended to put a trader’s capacity to earn profits while properly managing risk to the test, with a set of trading rules and objectives to adhere to over a specific period.

A forex prop challenge normally has two primary stages:

1. The challenge phase: During this initial phase, traders are given a demo account with a fixed balance and are asked to meet a certain profit objective within a set timeframe, often a month or two, while adhering to maximum drawdown restrictions and other trading guidelines. This phase evaluates the trader’s capacity to earn profits within specified risk constraints.

2. The Verification Phase: Traders who successfully met their profit objectives and followed the regulations during the challenge phase advance to the verification phase. This stage is similar to the challenge phase, although it often lasts longer and may include somewhat different profit objectives or criteria. The goal of this phase is to confirm the trader’s consistency and expertise across a longer time frame.

After completing both steps, traders are often awarded a funded account. This implies that the prop business sets aside a portion of its funds for the trader to handle. The profit gained by trading this capital is split between the trader and the prop business according to a predetermined split.

Forex prop challenges need a cost, which varies for each prop business. This charge covers the expense of the review procedure and guarantees that traders are committed to the offer.

The particular criteria aims, and structure of prop challenges might differ significantly between businesses. Traders are expected to match the following common parameters:

Profit targets: A predetermined proportion of the account balance that traders must meet.
Drawdown limits: The maximum permissible percentage loss from the account’s peak amount, both daily and cumulatively.
Minimum trading days: The number of active trading days required throughout the challenge period.
Trade style restrictions: Some companies may have regulations about trading strategies, such as forbidding high-frequency scalping or overnight positions.

Aside from the initial challenge fee, forex prop challenges provide traders with access to considerable trading capital without putting their cash at risk. However, participants must carefully evaluate the terms and circumstances of these challenges, since the criteria established by prop businesses are stringent and intended to test traders’ discipline, risk management, and trading acumen.

How to Beat the TopStep Trading Combine Challenge?

Successfully completing forex prop challenges demands a blend of discipline, strategic planning, and risk management. First and foremost, understanding the specific rules and objectives set forth by the prop firm is crucial. Before you begin trading, ensure you are fully aware of the profit targets, maximum drawdown limits, and any other constraints, such as minimum trading days. This foundational knowledge allows you to tailor your trading strategy to meet these criteria without violating any rules that could disqualify you from the challenge.

Developing a solid trading plan is your next step. This plan should not only aim to achieve the profit targets but also incorporate strict risk management rules to avoid hitting the drawdown limit. Consider factors like your risk-to-reward ratio, the size of your positions, and the markets you will trade. Sticking to currency pairs you are familiar with can enhance your ability to predict market movements and manage risks effectively. It’s also beneficial to schedule your trading times around major market events or releases that can impact currency volatility, thereby maximizing your trading opportunities.

Risk management cannot be overstated in its importance. Apply consistent risk management techniques to protect your capital. This might include setting stop-loss orders for every trade, managing the size of your positions, and not risking more than a small percentage of the account on a single trade. Remember, the goal is not just to make profits but to do so in a way that carefully manages potential losses.

Psychological preparedness is also key to navigating the ups and downs of trading. Maintaining discipline and emotional control can help you stick to your trading plan, especially during periods of market volatility or after experiencing losses. Avoid the temptation to overtrade or chase losses to hit your profit targets. Sometimes, taking a step back and reassessing your strategy is necessary to ensure you are aligned with the challenge’s goals and within risk management parameters.

Lastly, consider using the challenge as a learning opportunity, regardless of the outcome. Reflect on your trading decisions, strategies employed, and how you managed risk. Successful completion often requires continuous learning and adjustment of your approaches based on experience and performance analysis. Engaging with a community of traders, either within the prop firm or online, can provide additional insights and support to enhance your trading skills and strategies.

By focusing on these key areas—understanding the challenge rules, planning and executing a disciplined trading strategy, employing rigorous risk management, maintaining psychological resilience, and learning from the experience—you’ll be well-positioned to successfully complete the TopStep Trading Combine challenge and advance your trading career.