Apex Trader Funding How Draw Down Works
Transcript
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What’s up guys so let me just explain because I had a couple questions about the the draw down on apex versus some of the other uh companies so Apex does a intraday draw down which means they basically take your highest so argument sake say you start with a uh 50k account right here um you start at 50,000 say you make a th000 bucks and you go up to 51,000 well if then you lose 500 in another trade your draw down is
2500 from the highest point which would be 51,000 now also the same works not even if you finish your trade say you’re in a trade the trade goes up to 52,000 you do not sell it it comes back down to 50,000 and you’re like all right I’m going to sell it for break even with your draw down is based off the highest point of the account which was 52,000 so now your draw down from is 2500 from 52,000 which means you
Only have a $500 draw down even though you sold at break even so this is one of the things you got to think about in your strategy when dealing with Apex is kind of of like um am I going to ride this trade out probably not I try to take profits before I see a pull pull down uh pullback to basically lock in to keep my draw down as high as possible while if you were trading like TOP Step it goes
At the end of day draw down which means whatever you do during the day doesn’t matter you you just can’t lose x amount of dollars in a day TOP Step is a, bucks so say you start off at 50,000 as long as you don’t hit 49,000 you can trade all day up down up down doesn’t even matter at the end of the day you have 51,000 boom 51,000 it backs it up 1,000 bucks you can’t go lower than 50,000 and that’s
Pretty much how it works so that’s why some people like the end of day draw Downs you get a little bit more on the trailing but the thing that you remember is you can’t be holding trades um you know long it’s got to be one of those things that you know you hold the trade and then you kind of try to exit um and not not really hold it you’re not holding and moving your stops up to break even no you’re
Taking profit uh you’re taking profit at the top or where you think the top is before a pullback so I don’t really get in trouble with uh Apex with the draw down I I kind of take profit so it’s not really a big deal to me so that’s why it doesn’t matter while some people want to keep moving up their stops to like break even and let the trade move around then you’re better off at a spot that has end to
Day draw Downs instead so different rules you know just kind of affects how you’re going to trade and however you trade currently um you know depends on what uh place would would kind of suit your needs better so comment below if you have any questions and I’ll get right back got you
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