This document explains the rules for a $100,000 trading combine, specifically focusing on the dynamic maximum loss limit. Initially, for a $100,000 combine with a $3,000 max loss, the account balance cannot drop below $97,000. The key mechanism is that the maximum loss account balance (the lowest permissible balance) is not static; it adjusts upwards based on the highest *closed* account balance achieved. For instance, if a trader makes $2,000 on the first day, bringing the balance to $102,000, the new maximum loss limit for the next session will be $99,000 ($102,000 - $3,000). This adjustment ensures that as a trader profits, their allowable drawdown also increases, providing more room to trade. However, there's a ceiling: the maximum loss limit can never exceed the initial starting balance of $100,000. This means if the account balance reaches a point where the $3,000 drawdown would put it above $100,000 (e.g., $103,000 balance, $3,000 loss would be $100,000), the max loss limit will cap at $100,000. Crucially, the maximum loss account balance can only increase or remain constant; it will never decrease, even if subsequent trading days result in losses. It is always based on the *highest closing account balance* achieved to date. Once the maximum loss level reaches the starting balance ($100,000), it becomes fixed at that level and will not change further unless the trader successfully passes the trading combine or chooses to reset their account.

Topstep

Say you are starting a 100K trading combine and the max loss limit is three thousand dollars. This means that on your first trading day, your account balance may not go below ninety-seven thousand dollars.

If you close the day up two thousand dollars, bringing your account balance to a hundred and two thousand, your max loss account balance for the next session will increase to ninety-nine thousand dollars. If you make two thousand dollars again on the second day, good for you. Your max loss on day three will be set at one hundred thousand dollars.

This is because your max loss cannot go beyond your starting balance. Remember, your max loss account balance can only increase or remain constant.

In our example, if you were to make two thousand dollars on day one and lose two thousand dollars on day two, your max loss account balance would still be set at ninety-nine thousand dollars on day three. This is because it's based on your highest closing account balance.

However, once the max loss level reaches the starting balance, it will stay there until you pass the trading combine or reset the account.

1 Rule: Maximum Loss Limit

say you are starting a 100K trading
combine and the max loss limit is three
thousand dollars
this means that on your first trading
day your account balance may not go
below ninety seven thousand dollars
if you close the day up two thousand
dollars bringing your account balance to
a hundred and two thousand your max loss
account balance for the next session
will increase to ninety nine thousand
dollars if you make two thousand dollars
again on the second day good for you
your max loss on day three will be set
at one hundred thousand dollars
this is because your max loss cannot go
beyond your starting balance remember
your max loss account balance can only
increase or remain constant
in our example if you were to make two
thousand dollars on day one and lose two
thousand dollars on day two your max
loss account balance would still be set
at ninety nine thousand dollars on day
three this is because it's based on your
highest closing account balance
however once the max loss level reaches
the starting balance it will stay there
until you pass the trading combine or
reset the account

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1 Rule: Maximum Loss Limit

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