1. Read rules as operating limits
Topstep rules are not a legal detail to read once. They define how much you can lose, when you must stop and how large a green day can be before it creates later issues.
- Daily loss: the day switch.
- Maximum loss: the account edge.
- Contracts: the size ceiling.
- Consistency: protection against disproportionate days.
2. Daily loss and shutdown plan
Daily loss should become three levels: normal zone, reduction zone and stop zone. If you wait for the exact limit, you are already late.
| Level | Action |
|---|---|
| 0-40% | Trade normally. |
| 40-70% | Reduce size or only A setups. |
| 70%+ | Stop or lock out. |
3. Drawdown and floating gains
The common mistake is assuming floating profit does not change risk. In trailing models, giving back open profit can leave less real room even when the day looks green.
4. Daily routine
- 1Review calendar and schedule.
- 2Define a personal loss limit below the firm limit.
- 3Calculate contracts from stop distance.
- 4Record every rule break.
- 5Close the platform at the stop point.
This is not financial advice and does not guarantee passing an evaluation. Firm rules can change; always verify the official source before trading.
5. What to automate
Automate limits, alerts, preventive flattening and lockout. Do not automate increasing size after losses or chasing daily targets.