Be careful when trading with prop's?

Originally posted by sharper
Echo has very poor risk management. It's almost as if everybody is out on their own.
More...

That's a bold statement. What information are you basing this on? Have you seen the risk management software? Have you been in the room used to monitor traders? I spent a few months trading in the company's head office and have. Every single position is monitored in real time by several people. I've never gotten a call from the risk management department, but know traders who have. When a position is too large or is placing the trader or the firm at some kind of undue risk, the call comes instantly.

One of the reasons I chose to trade at Echo is that I felt comfortable with how this important issue was handled and I feel much more comfortable now. I'd really like to hear your reasons for this assertion. Or did you blow up your account through poor trading and now you are crying sour grapes because no one stopped you?

Corey
 
The software locks you out from an 'initial' trade being too large, but nothing prevents a trader from entering a second position or subsequent position that would normally have be a "risk" if placed all at one time.

- Every single position is not monitored - That's a fact

- A position too large does NOT trigger alarms - That's a fact.

That's one example, while dismissing two of your so called Echo risk management safe guards.

State some others, so that they can be dismissed also.

If you want to take this personally that's fine by me, it wasn't directed at you. If you want to bring me personally into it though, that's another story. Be careful
 
Did you know that your Sterling software has a feature that allows the trader to put a limit on his maximum order size? You decide what this number should be. I have mine set to 3000 shares, but it's mostly just to prevent me from accidentally sending an order with one to many zeros or something. Is this what you are talking about? Maybe you didn't know about this. If I didn't use this feature and decided to send an order for 10,000 shares of IBM, the software wouldn't stop me. But you can bet I'd get a phone call within a minute of my fill telling me to reduce or get out of the trade.

As for your dismissing my comments with simply saying you are right and "That's a fact", well I'm sorry but you'll have to try a little harder to convince me. I've seen it with my own eyes and can provide references by other posters on this board to back me up.

It's nothing personal, but come on, what kind of support are you putting behind your assertions?
 
I know about the features on Sterling software, and I also know that you won't get a phone call.

I was talking about two different orders for the same stock- the first order doesn't put you over the limit, but the second one does. The point I'm making is that allows that - which it shouldn't. I thought I made my point pretty clear initially.

I can try to pull up my "support", but then again you probably wouldn't be satisfied at that point.
 
Well I'll have to disagree on both points. First of all, if you are putting your account or the firm at risk with a position, you WILL receive a phone call. I know the guy that makes the call and know traders who have received them. I guess if things were extreme, they might have to take action immediately before they can make a call, but I can't comment on how situations like that are handled, because I don't know.

Secondly, I don't want software that has extra layers of checks like that. I want my order sent as quickly as possible without intervention by risk management, the clearing firm or anything else. If I screw up and send an order that is too large, I'll get out of the position and be more careful next time.

Echotrade caters to professionals who know what they are doing and they provide the tools necessarey to compete at the highest level. If I want people to check my orders and make sure I'm ok, I would trade with a retail outfit.

I'm not trying to be argumentative, and don't know why you think I would not be satisfied with the support you have to back up your points. I'm an open minded guy, prove me wrong and I'll admit it and move on.
 
You make a lot of assumptions as to what they do. What is the name of the risk management software that they use since you are so familiar with it?

You say that they will call, I say that they won't. You say that you know the name of the guy that makes those calls - so that is one guy per how many traders?

I'm not personally familiar with the risk management software, just Sterling software, but you state - "Secondly, I don't want software that has extra layers of checks like that. I want my order sent as quickly as possible without intervention by risk management, the clearing firm or anything else." - How many layers of checks are there? I don't think there are too many, but tell me.

"Echotrade caters to professionals who know what they are doing and they provide the tools necessarey to compete at the highest level." Don't forget to wear knee pads.

I stated before that I could try to dig up the support. From your previous posts I don't think you are an open minded guy. Tell me where you live and we can have a beer while we discuss it though.
 
Sterling has a management version of it's software that allows the firm to monitor everyone at once. The guy who will call you is named Vince. He's locked down in a room all day staring at a bank of eight 21" monitors which shows all open positions firm-wide. He doesn't even come out for lunch. Other principals of the firm also monitor positions during the day, but this is his main responsibility.

I've posted several favourable posts about Echotrade. I don't have any affiliation with them other than being a satisfied trader there. If I traded with Bright or anyone else, and was very happy with my situation, I would recommend them and say nice things about them. So you can call me biased if you want, I'm not trying to score brownie points here, just present facts.

I don't like making assumptions, but you seem to be quite comfortable with it.
 
well, that says a lot - Sterling risk management software (or Sterling management software with one risk guy, not including the principals)

So, the risk management of Echo is dependent on Vince and Sterling software (would rather principals run the business, so I'm not including them)?
 
Well it sounds like you've got your mind made up already, so I'll just end the discussion right here. I'm satisfied with the way things are handled there, and I think I've made my points clearly. I'm not a company representative and if you need more detailed answers, I guess you'll have to get them right from the horses mouth. You might just have to move on and try to find someone who caters to your needs better.

I hope you are a better trader than you are a debater.

Good luck,
Corey
 
I didn't start the debate, but gave you my reasons for the poor risk management when you said it was very good. When I asked more questions, which you said you knew the people and systems involved personally, you couldn't respond.

This is a good example of a stop loss. When you are losing, walk away from it.
 
You must log in or register to reply here.
Back
Top