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That is certainly a big part of it, but sound business sense and the exchange rules for member electronic firms is the other big piece. You would never be able to find a principal investor at a member electronic firm willing to back a newbie remotely who wanted to trade futures. Makes no...

If the firm, by exchange membership rules requirements, cannot take trader capital contributions, then prudence dictates it. A newbie whom you do not really know and with no skin in the game risking firm capital remotely - that is not prudent. And that is why the futures prop trading business...

If you need excitement and a dopamine rush, then by all means daytrade CL outrights. Most of my clients are experienced scalpers who seem exhausted by the emotional toll all of that "excitement" extracts from their souls, and so they come to me seeking more consistent returns. If you're doing...

I've been getting an influx of stock pairs traders contacting me as of late inquiring about the feasibility on switching to futures. Of course, all of them have been modeling and trading for mean reversion on one or two or three sigma moves. I guess trading is all about pain management.

Most of our energy spreads are intercommodity and frequently use multiple legs - like butterflies and condors. Really a very, very profitable strategy for us with futures. And stupidly cheap to carry overnight. Initial SPAN margin credits are at least 80 % and are typically over 90 %...

The OP was talking about the choice between manually legging a spread combination through multiple order ticket windows, or using an exchange supported ( and exchange order matching algo ) to do the dirty work for you. The exchange wins hands down every time, btw. And I have all the...

Again, just to add this caveat once again, this is certainly true for an equities prop business model where the trader contributes capital. I am not aware of remote futures trading using that business model. Futures exchanges ( the CME principally ) generally speaking require member...

Well, Chinese demand does not necessarily equate to US demand with the Nymex NG contract. The US political climate ( Dems ) have been negative for LNG terminals located on the US West Coast.

Well, benchmarking is fine if you have proper verifiable metrics for which to measure yourself against. And you won't find that asking on ET or comparing yourself to what a HF manager says or the media somehow implies that he or she does. And that is the point I was trying to make...

1. Not unless you are leasing a seat and getting Member fees. 2. Not unless you enjoy getting flipped and picked off on a routine basis. 3. We trade these Cracks with longer timeframes in mind in terms of modeling and trade holding periods. 4. You'll get a very nice exchange SPAN initial...

As I mentioned in another post, Copper does not correlate with much of anything these days. Certainly not above 90 % short term on a positive basis. This is a rather recent phenomenom, but it has gained consistency. Just several months ago, Copper was highly correlated to the S&P and the...

Not true, there is a very good market for RB-CL and HO-CL exchange supported on a 1:1 basis for Nymex. And ICE will do the GasOil/Brent Crack on a 4:3 basis. And you would never be able to leg them better on a consistent basis yourself, even with an AutoSpreader.

More stupidity perpetuated by those still gaming and corrupting the trading exchange rules and regulations and conditions for participation. While ICE surely knows that poaching business from other exchanges almost never works out, I give them kudos for sticking it to the man. The notion...

Please be advised that this post provided a great deal of entertainment value. Loved it. Priceless.

Big commercials and institutions almost always scale their trade entries and exits.

It became a bullshit question when Victor Niederhoffer was mentioned in combination with the term "top tier". His explosions are legendary. It's not a realistic question leaving VN out of the equation, as the answer is entirely dependent upon the instrument's volatility and the trader's...

Not remotely in terms of the futures complex. Every Chicago firm that I am aware of requires their W-2 employee traders to be physically located at the firm.

Copper used to be highly correlated with alot more commodities and equity stocks than it is at present. If you run a 2 year correlation looking at daily closes, there isn't much above 90 % positive correlation to speak of really. Again, that used to not be the case - but it is reality at present.

I am a big proponent of using multiple timeframes for technical analysis, and I have been doing so for years now. Please be careful about making broad statements that X timeframe is superior to Y timeframe. What works best is entirely dependent upon the instruments volatility characteristics...

Hence the call sign "braincell". Spot on.