i'm looking for 299 of the best prop traders to form the best prop trading group in the industry.
i'm a prop trader, have over 15 years in futures, options, stocks, some spot forex (zero-sum game mostly).
i've got ten years in silicon valley under my belt. two ipos. two vc funded startups. two kids. a divorce.
i've got scars, and i know how to trade and how the markets work as well as anyone can test me.
and no one, not even my own mother, can shake my confidence, not even when i'm dead wrong.
i will be the first to admit it and the last man out the door until i fix it.
i trade about 18 hours a day.
i'm researching the idea of forming a new prop trading group based in NYC different from what i know exists with assent backed prop shops.
here's the premise:
every trader brings $25K in to meet day trading requirement.
neophytes bringing in $5K will be leveraged to match the lowest capitalised trader in the pool, and risk-adjusted to match their ability and matched with the top trader.
bottom learns from the top.
every trader gets their 7 and 55.
leveraged to 20:1 intraday.
directEDGE clearing same rates for every trader, regardless of volume, daily volume is pooled within the group, not by separate trader account, with rebates kicked back into profit pool for endofmonth distribution according to percentage ownership in the partnership.
LLC partnership format according to capital contribution to pooled trading capital.
no desk fees, no rogues walking around thinking they can trade outside the system, everyone is in at 8am and out at 5pm or go somewhere else.
this is a job where once your money goes in the pool, you answer to everyone, not just your own p&l.
but even if you're at the bottom of the list for the month, we will make sure you make your rent and eat.
one for all and all for one.
i'd like to be at $100M+ volume a day, 1M shares a day within three months. not unreasonable considering i churn 1,000 shares of AAPL at a time all day in .20 cent increments.
not that complicated.
i would like to take the company public within one year.
what's somewhat different is we're trading as a unit, like spartans, every trader works within the designated strategy of the day, week, month, according to set meeting decisions three times a day.
morning, lunch, close.
overnight is tbd as this is mostly an intraday strategy.
we're going to invest heavily in outside news and filtering technology to do the heavy lifting of finding major movers.
however, the primary focus of the group is financials and tech.
this means, AAPL, GOOG, FSLR, BIDU, C, BAC, GS, JPM, PNC, WFC, all the major ETFs, we are in and out of these all day, en force, generating profits consistently with options hedging our combined positions on a real time basis.
this function will become more automated over time.
and mentoring is mandatory. every experienced trader will be required to mentor a no-nothing cocky college kid with more money than balls.
what we need:
a few analysts who want to become traders.
traders who want to be part of a bigger pool of capital to exponentially increase profits, reduce mistakes, reduce individual risk, minimise life stress by having a stronger support system in place for decision making and the consequences thereof (i.e. less chance of blowing out, increasing profitability by reducing risky emotional decisions), and working within a common goal.
none of this churn and burn bullshit i keep seeing across the industry.
none of this crap where the guy next to you is shouting out to go long when a stock hits its resistance line and tanks two minutes later, none of this going short bullshit on financials when warren buffett is announcing a multibillion dollar investment in WFC.
and no buying into AIG or GM because you think you can make a quick 10 cents.
a managing director that isn't trading, who has managed a top firm trading floor, someone older, who has the emotional and mental discipline to sit down when problems occur, lead our company with confidence, and develop strategies beyond simple scalping to where the top hedge funds will start throwing money our way to spread out their risk and capitalise on our higher risk tolerances when the markets get heated.
what that means is, if we're going all-in short on BAC pre-earnings report, and a thousand other traders worldwide are following our lead because i twitter it preopen, we're driving, not ken lewis.
watching jim cramer's mad money is recommended, but optional. jim may make some bad calls, but at least he's man enough to admit it on global network television.
we're bringing in the top educational trading firms to hold weekly seminars, we're going to have MANDATORY web classes to review skills and learn new ones, and we're going to have report cards and a grading system setup where if you can't tell me why C isn't going down today with the XLF, then you need to do your homework this weekend and come back on monday with the right answer instead of going to atlantic city to play poker, or you're gone.
every month, we're going to have a contest, just like glen garry glen ross.
one month it's an ducati 848, end of year is an audi r8 (because i know the manager at park ave fairly well) for the top trader, second prize is a can of tennis balls you'll be required to get maria sharapova to sign at the usopen for losing. but if you can get her autograph then you're back in my good graces forever.
we're going to cater lunch in every day off seamlessweb, paid by the firm, none of this free friday pizza bullshit.
and we're going to have tech support, none of this figure it out yourself, or pester another trader, or weeding through a thousand page help document.
just a few ideas...
wondering if this will fly.
if not, fuck it, i'll stick it out on my own.
cheers.
rb.
ps. scott, if you're reading this, maybe this is your chance to follow through with what we discussed last year...
i'm a prop trader, have over 15 years in futures, options, stocks, some spot forex (zero-sum game mostly).
i've got ten years in silicon valley under my belt. two ipos. two vc funded startups. two kids. a divorce.
i've got scars, and i know how to trade and how the markets work as well as anyone can test me.
and no one, not even my own mother, can shake my confidence, not even when i'm dead wrong.
i will be the first to admit it and the last man out the door until i fix it.
i trade about 18 hours a day.
i'm researching the idea of forming a new prop trading group based in NYC different from what i know exists with assent backed prop shops.
here's the premise:
every trader brings $25K in to meet day trading requirement.
neophytes bringing in $5K will be leveraged to match the lowest capitalised trader in the pool, and risk-adjusted to match their ability and matched with the top trader.
bottom learns from the top.
every trader gets their 7 and 55.
leveraged to 20:1 intraday.
directEDGE clearing same rates for every trader, regardless of volume, daily volume is pooled within the group, not by separate trader account, with rebates kicked back into profit pool for endofmonth distribution according to percentage ownership in the partnership.
LLC partnership format according to capital contribution to pooled trading capital.
no desk fees, no rogues walking around thinking they can trade outside the system, everyone is in at 8am and out at 5pm or go somewhere else.
this is a job where once your money goes in the pool, you answer to everyone, not just your own p&l.
but even if you're at the bottom of the list for the month, we will make sure you make your rent and eat.
one for all and all for one.
i'd like to be at $100M+ volume a day, 1M shares a day within three months. not unreasonable considering i churn 1,000 shares of AAPL at a time all day in .20 cent increments.
not that complicated.
i would like to take the company public within one year.
what's somewhat different is we're trading as a unit, like spartans, every trader works within the designated strategy of the day, week, month, according to set meeting decisions three times a day.
morning, lunch, close.
overnight is tbd as this is mostly an intraday strategy.
we're going to invest heavily in outside news and filtering technology to do the heavy lifting of finding major movers.
however, the primary focus of the group is financials and tech.
this means, AAPL, GOOG, FSLR, BIDU, C, BAC, GS, JPM, PNC, WFC, all the major ETFs, we are in and out of these all day, en force, generating profits consistently with options hedging our combined positions on a real time basis.
this function will become more automated over time.
and mentoring is mandatory. every experienced trader will be required to mentor a no-nothing cocky college kid with more money than balls.
what we need:
a few analysts who want to become traders.
traders who want to be part of a bigger pool of capital to exponentially increase profits, reduce mistakes, reduce individual risk, minimise life stress by having a stronger support system in place for decision making and the consequences thereof (i.e. less chance of blowing out, increasing profitability by reducing risky emotional decisions), and working within a common goal.
none of this churn and burn bullshit i keep seeing across the industry.
none of this crap where the guy next to you is shouting out to go long when a stock hits its resistance line and tanks two minutes later, none of this going short bullshit on financials when warren buffett is announcing a multibillion dollar investment in WFC.
and no buying into AIG or GM because you think you can make a quick 10 cents.
a managing director that isn't trading, who has managed a top firm trading floor, someone older, who has the emotional and mental discipline to sit down when problems occur, lead our company with confidence, and develop strategies beyond simple scalping to where the top hedge funds will start throwing money our way to spread out their risk and capitalise on our higher risk tolerances when the markets get heated.
what that means is, if we're going all-in short on BAC pre-earnings report, and a thousand other traders worldwide are following our lead because i twitter it preopen, we're driving, not ken lewis.
watching jim cramer's mad money is recommended, but optional. jim may make some bad calls, but at least he's man enough to admit it on global network television.
we're bringing in the top educational trading firms to hold weekly seminars, we're going to have MANDATORY web classes to review skills and learn new ones, and we're going to have report cards and a grading system setup where if you can't tell me why C isn't going down today with the XLF, then you need to do your homework this weekend and come back on monday with the right answer instead of going to atlantic city to play poker, or you're gone.
every month, we're going to have a contest, just like glen garry glen ross.
one month it's an ducati 848, end of year is an audi r8 (because i know the manager at park ave fairly well) for the top trader, second prize is a can of tennis balls you'll be required to get maria sharapova to sign at the usopen for losing. but if you can get her autograph then you're back in my good graces forever.
we're going to cater lunch in every day off seamlessweb, paid by the firm, none of this free friday pizza bullshit.
and we're going to have tech support, none of this figure it out yourself, or pester another trader, or weeding through a thousand page help document.
just a few ideas...
wondering if this will fly.
if not, fuck it, i'll stick it out on my own.
cheers.
rb.
ps. scott, if you're reading this, maybe this is your chance to follow through with what we discussed last year...
