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We are finally seeing a real flattening of the curve in WTI.

Nice post Endicott. You are a smart guy and a hard worker. The TST thread is like that bar down the street with the same two loud drunks that are there everyday shouting at the rain. Let me say this, I think the advice you offered was good advice 10 years ago. As some one who has been in...

Keep in mind my number lines are still confirmed so I still see this as more of a exit longs then getting short situation.

My vol indicator went off today. As in sell risk assets and get long vol.

The moves in grains are real and this is absolutely the best place to be in the market right now in terms of fresh price action. Grains have been dead for a long time and now are wide awake. Also I don't hear much chatter about them anywhere. Everyone I guess is too busy trying to sell the...

That is exactly what I am saying.

Well, it's over the prop firms where you contribute your own capital. Plenty of real prop firms still out there.

There is a lot of math involved here and I could probably write an 800 page book on the subject and why your above statement is inaccurate but since this industry doesn't really exist anymore, I'll fore gore the literary exercise.

Bob, we are not talking about introducing brokers here. I think you somehow thought the question was should I join a prop firm or start a fund through an IB. I am trying to explain the difference between at that time was the choice a trader had between joining a JBO or staying retail in a PM...

Rob, Vtrader "was" a prop firm with PM accounts. Let me try a different angle. Either A: you offer customers segregated accounts and therefore they are insulated and protected from the losses of other accounts or B: your customers are NOT protected and if one account blows up, they all go...

I'm not talking about "meeting" them. You cannot move capital into their accounts. We were able to do that. And that saved traders. When a guy is blowing out he doesn't usually have another 100k to 200k liquid to meet a call on the spot. Because we were a JBO with "sub-accounts" that were...

That's not true. We also ran the first PMA's with Fimat and we DID auto-liquidate PMA accounts. We had to. It was actually 100% illegal for us to move capital into a segregated securities account for ANY reasons, and certainly not to meet a margin call. It was the one advantage JBO's had...

At the time, there were huge benefits to trading in a JBO. One was the risk based haircuts which was light years ahead of Reg T margin. Two, we allowed traders access to floor brokers so they could could shop spreads at advantageous prices. Three, the JBO offer 60/40 mixed straddle tax...

Nope, it's entirely from the from the forward curve which has been very steep the last few years times the leverage. Just look at the VX futures for reference.

It was NEVER that high. It's been reverse split about 10 times. This thing has barely ever traded above $10.

Which means there is a lot of assets in the middle that are attractive.

I would say half of my guys came in with 100k to 250k. Another 25% between 50k and 100k and I made some exceptions and bought in a few guys with under 50k. It was mind boggling to me how even the guys with 100k to 250k were so anxious to blow all their money. The small guys didn't have a...

Not to be judgemental but I collected data on at least the guys in my group and there was a pretty strong correlation with guys with credit issues and the probability they blew out their account, had a negative balance and refused to pay us. The guys with good credit didn't seem to have this...

No Bob, I ran the Chicago office and I absolutely was given orders to reject traders who had bankruptcy issues. In fact, we ran credit checks on traders and turned guys away who simply had bad credit. You may have been given a pass with regards to your background but I got my ass chewed out...

Yeah we had an additional form that was firm specific that asked if you ever filed. Part of the "know your customer" check.