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So TSTs break even point is initial risk of $4500 per trader - whatever combine test fees they can extract! and TST does NOT take any risk beyond the above amount...! Does marketing clearly state that? I doubt? Same way $150,000 account does not mean they put $150,000 real cash in to the...

GE went from ~$30 to ~$6. I ended up holding the bag on GE. same here By the way when you say DO 1) It still has the big downside risk

Covered Call = Eat like a king everyday ( week/ month etc) and shit like an emperor one day ( stock drops way below the premium received) so "rinse and repeat is fine" but it can bite you on the backside also! Be mindful of this aspect . There are educators and scan sellers who paint this as if...

Very good analysis, "In my opinion the only real funding is provided by TS is at the beginning of your newly funded TS funded account" That is assuming you pass the "test" with min attempts. as each test cost you money For everybody's benefit how do other "similar" firms stack up? apples to...

So you main interest is Pairs trading with Good cross margin relief / advantages? correct ? 1) Main Exchange traded Futures to Futures ( Exchange recognized spreads like ES/YM) , As Bone mentioned any major FCM should be able to facilitate that + trading platforms like CQG/TT etc Why would you...

Both Mr A and Mr B has $1000 that they can afford to loose and want TO play the "Market" Mr A chooses exchange traded product s like BTC Option on CME Mr B choose BTC option on thinly regulated / unregulated exchange Both take Market risk and take same position on the market direction But only...

Sure because you have made money you dismiss this risk.. It can be equally said that just before making that money if the so called exchange would have gone burst I am sure your approach be different My main concern is client money protection..either through broker failure or exchange failure...

Likelihood of an exchange going belly up can be guessed up to a certain degree In places like Seychelles you can start a "Exchange" under 20K Would you trust them? or would you trust for example a "Exchange" regulated strict place like Singapore (MAS) the same argument was used by backers of...

Why is it too high? money is money.. traders don't mind market risk but not this silly risk of exchange itself going out of business ...so WHEN WAS LAST TIME EXCHANGES LIKE cme/ nyse/ lsE, ice, asx OR sgx WENT BELLY UP? Yes sure Fcms have gone out of business...but not the exchange. where as...

Simple answer: CME one of the most reputed and US regulated exchange has BTC Futures cash settled and Options on BTC but you have to trade through a FCM futures there is still a risk that a Futures FCM can go belly up like MF Global so IB with a combined account who claim that your cash is...

This blog says "Making the wrong bet could lead to immediate losses, " assuming they are talking about taking such risk by using BTC Options IN that case it is half/ truth Long Call or Long PUT = Limited risk = premium you pay Short Naked Call = Unlimited risk Short Naked PUT = Limited risk =...

oh so First loss funding is also not allowed? but Professional Fund managers and may be CTAs are funded that way sometimes are they not? PS I have not lost any money with any such dodgy practices so won;t be complaining to CME ...I am just echoing concerns about "Pay the test model " after...

I had same question to OP. what happens if First step the price goes down ( assuming your starting point is LONG) This prompts me to ask you (Cannon trading) a Cross Margin and execution question 1) Covered call" In equity space the OCC and Broker recognizes Covered call writing and treats the...

"Proper" is the key word.. I agree 100% the most legitimate and honest business model for so called "Prop firms" is A)apply own capital, B)hunt talent at own costs and then C) the traders are paid based on performance.. just like any other job if you dont perform you are out. you perform you...

understood your point about the 180° reverse , I was just agreeing with that guys "questioning of the main business motive" of ALL these firms not just one. If the intent is to really hunt talent the revenue should be coming from trader's skills not by charging them a test fee. as soon as a...

Understood , may be he changed his mind but when he turned, the points he made are valid IMHO

I did not infer it as illegal, I always said the motive of such model can be questioned . I am not the only one labeling this model as Hamster wheel Re quote" "technically it must be legal for a 1 entity to charge test fees and another entity to fund!" Even if there is cross ownership You...

I have been "bashing" this business model from the start.. It works for them sure...but does it work for hundred who fork out the "test fees" Why is it the "Hamster wheel" label is attached to these business models perhaps because the real motive is that only! Reason this is raised once in a...

DTTW has lot of bad press! spam\marketing etc

Thanks for the explanation Bone, so anybody joining Say TST or alike in theory does not deposit own funds! although by that time they might have paid enough in "Test fees" so at the lowest level it could be construed as their ( traders) money! another thing then some of these business perhaps...