Would you fund a trader with a proven record?

[Joules MM1]

That's not what I said. I said if the trader is so good (>2x better than me), why would they trade in a $2 prop shop? Even if it was just to get started, he/she certainly would move on to bigger, better capitalised outfits.

except for the line that said your post was good all else was not at or about you......but, nice bite tho

 

[Joules MM1]

say, did a lot of people wake up on the wrong side of their coffee machines today or wot !

 

[skc]

Who said anything about being a $2 prop shop??

This...from everything I've read these guys are funding no bigger than what most full time retail traders would trade.

Sort of like Top Step Trader....but more like an online Prop Shop....

If a bunch of guys can get together and form Propex, why can't another bunch of investors do this?

Sure if it's something like Propex. Like I said, if one can get around the hurdles of initial fixed costs, get critical mass of traders and have enough capital so the good traders don't out-grow you, then it's a very valid business model.

 

[McLovin]

What's sort of capital is the average trader at a prop shop given?

 

[skc]

except for the line that said your post was good all else was not at or about you......but, nice bite tho

Well it's hard to know where "your" doesn't apply to "me" after you've quoted me.

That's why I use "one" (when I remember).

E.g. "One" must be careful how one quotes vs "You" must be careful how you quote"

 

[boofis]

Would do it if I had the capital.

Just for discussion: Why couldn't the business have incentives for traders who develop and want to move more size? Rather than just assuming they'll go for a bigger firm?

Would the idea be to refine individuals already trading or...?

Definitely think you would need some top traders to play the mentoring roles and what not.

What's the regulations on this stuff like when it comes to getting multiple traders to trade thinner markets and have one hitting size for the break then one fading when the momentum pulls back? etc.
:dunno:

 

[prawn_86]

What's the regulations on this stuff like when it comes to getting multiple traders to trade thinner markets and have one hitting size for the break then one fading when the momentum pulls back? etc.
:dunno:

Not 100% sure but i would assume as long as there are 'chinese walls' in place and each trader was trading their own account and not atually colluding it should be ok. Obviously there is probably additional regulations i am not aware of

 

[Trembling Hand]

What's sort of capital is the average trader at a prop shop given?

Not unusual to start newbies (just out of training) with $150,000 to MAX size positions @ $500,000.

Thats newbies. Good profitable traders depending on the market many multiples of that.

 

[McLovin]

Not unusual to start newbies (just out of training) with $150,000 to MAX size positions @ $500,000.

Thats newbies. Good profitable traders depending on the market many multiples of that.

Thanks TH. That's much less than I thought.

 

[boofis]

Thanks TH. That's much less than I thought.

Fo' real? :\ Let me have your account if that's small size!

 

[CanOz]

Thanks TH. That's much less than I thought.

McLovin, these guys are mostly day traders. Flat at the end of the day. You're not thinking they're like a fund manager are you?

CanOz

 

[McLovin]

McLovin, these guys are mostly day traders. Flat at the end of the day. You're not thinking they're like a fund manager are you?

CanOz

No, I know that.

I just thought they'd be working with a bit more cash. What sort of returns would they be generating?

 

[Trembling Hand]

Thanks TH. That's much less than I thought.

Oh and on your other question about upping size. You wouldn't be wasting your time in the penny dreadfuls. Mostly you would aim at the futures market where you can hit the market and get many mil in a second. Clearly ASX stocks are not where you look.

 

[McLovin]

Oh and on your other question about upping size. You wouldn't be wasting your time in the penny dreadfuls. Mostly you would aim at the futures market where you can hit the market and get many mil in a second. Clearly ASX stocks are not where you look.

Thanks, that makes sense.

 

[boofis]

I'm not a trader. My account is, however, quite a bit larger than $150k



No, I know that.

I just thought they'd be working with a bit more cash. What sort of returns would they be generating?

I thought it was max 500k position size? Not account size.

Anyway, back on topic lol.

 

[Trembling Hand]

I just thought they'd be working with a bit more cash. What sort of returns would they be generating?

How longs is your string compared to mine? You really don't go on "returns" as strange as that sounds. I've never been asked about % return in my talking with prop shops. Not sure any traders I know have either. But i really only know one prop trader well.

I'll get back to you later on this one before the risk manager sees all my posts and pulls my account.

 

[McLovin]

How longs is your string compared to mine? You really don't go on "returns" as strange as that sounds. I've never been asked about % return in my talking with prop shops. Not sure any traders I know have either. But i really only know one prop trader well.

Is risk the answer to what they look for? How it's managed etc, especially as they give you more and more of their money?

 

[ThingyMajiggy]

Would do it in a heartbeat and have thought about it later down the track also, just dream building but love the idea, also thought about a HFT firm as an idea.

But I'm more of the trader looking to be funded at this point in my life

 

[CanOz]

75% or so now would....

Good stuff.

CanOz

 

[waza1960]

Sounds like a good idea but have a look at the latest FX developments which are gaining rapidly in popularity..
Trade signals check out these links: http://www.zulutrade.com/performance
https://www.fxcopy.com/
http://www.mql5.com/en/signals and there are many others.

So basically you can trade the signals of these traders and pay a slight increase in spread.Obviously trading in the
retail FX space is not ideal. However why not set up something similar for futures if the relevant platforms support throughput of signals/copying signals.Then just pay a premium to the particular trader for signals used.Quite an elegant approach I would have thought.