Where I am from it seems the system is quite a bit different. I am from Melbourne Australia, and I havent heard of a Club where their Competetive stream doesnt start competing at Level 1.
In my Club we have 2 quite specific streams of gymnastics at that age:
The recreational Gymnastics (once a week, fun gym whilst still learning the basics and basic shapes)
and the Competitive Gymnasts.
The Competitive stream generally start in "Junior Development at about age 5 or 6, and they generally stay there for 1 year, occasionally 2. This level is a "pre competitive" level, they are taught the basics, body shapes, presentation, and begin to get their skills up for level 1. Most kids in this level come once a week for an hour and a half, but they have the option to do 2 of these classes a week. This level does not compete.
They then move to level 1, which are generally 2 hour classes, and whilst we encourage them to do twice a week, some only do 1. From Level 1 the gymnasts begin to compete compulsary routines, and they are able to choose between Level 1A, Level 1B or Level 1C.
Level 1C is for your average Gymnast and is aimed to lead on to the State stream.
Level 1B is for the better than average Gymnast (generally the kids that come twice a week) and leads to the National Stream
and Level 1A is for the Elite Gymnasts and is very very difficult.. and leads to International Elite stream
Level 1-3 works in this way with A B & C..
None of our kids do the A stream though, I cant remember level 1, but i know level 2A requires, roff bhs, fsault and bwd roll to h/s on floor.. a kip on bars as well i believe.. and these kids are usually about 7.
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In contrast, at that age, our Recreational Kids come once a week for 1 hour and get to play with the equipment, learn all the basic crab and bear walk etc.. and dont have to worry much about presentation or pointed feet at all.. its more about the fun and body awareness.
......
I suppose the way we make this work, is there is an open ability for the kids to move between the 2 streams (although they can only move INTO the competitive stream through invitation or assessment).. so if they arent ready for competitive or dont have the mindset or will, then there are other options..
Then theres our competitive Rec Stream, but thats quite irrelevant.. lol