Ok make it 50-100x leverage.
Bright Slashes Rates for 2010.
- Thread starter Don Bright
- Start date
Ok make it 50-100x leverage.
Quote from Shreddog:
I don't understand how you guys stay in business with rates this low.
self congratulatory statement,
perhaps they stay in business due to the high turnover rate and high failure rate, of otherwise highly successful traders, both before and after their Bright experience....
perhaps because firms like IB (Interactive Brokers) advertise weekly in both the WSJ and Barrons and other select financial newspapers, that anyone signing their non-binding agreement to post $100,000+ will get 5x margin or higher, along with their recommendation on positive float.
anyone see that advertisement?
it is highly persuasive. it suggests that one use the free float and margin funds to purchase dividend paying stocks and monitor their portfolio over a few quarters (i.e. trade around their core position) and let the positive float and earnings over their reasonable 1.23% margin haircut, roll in.
perhaps its because so many traders have left and started trading EMini futures through the electronic clearing exchanges and actually became profitable, daily, weekly, monthly unlike their experiences at Bright,
but who knows, traders are a highly fickle bunch of highly educated people, determined to succeed, and their goals aren't necessarily the same as these firms' goals....
just a more balanced thought....
I won't go into detail, but there are plenty of strategies that are hedged, balanced enough for that kind of leverage. I currently have right around 100X and have gone over on several occasions. I am obviously not looking to make, or lose, anywhere close to 1%. For anyone who actually knows what I am talking about, or is at least familiar with these automated trading systems, a response would be appreciated. Thanks.
There are many long-duration arbitrage opportunities that require the leverage that Bright allows. It's really the only shop for the retail guy to trade convertible-arbitrage and similar strategies. Nobody here has the access to equity swaps, so where are you going to find a shop offering similar overnight leverage? For a deposit shop they seem fantastic, just don't go there to scalp or the costs will eat you up. If I wasn't staked I would move my 7 there in a heartbeat.
Does Bright offer futures... If not which prop firm is good for futures. 
I actually thought you were serious with that comment
after all, someone making a comment in all sincerity like that has had blinders on and fogged up to the point that I wondered whether he/she could see the trading screen in front of their cataract eyes clearly....
(humor)
in all seriousness
1) the recent republican lead market collapse that culminated under Bush really did wipe out so many Hedge Funds, Feeder Funds and Traders (proprietary, and their Prime Brokerage sponsors)
2) the exclusive or much lauded Opening Order strategy has so miserably failed so many traders, what with the "opening" no longer meaning anything, as even listed stocks trade pre-market
3) the NYSE is no longer a US based institution, nor has it been for years, and the role of the Specialist (viewed as essential to the concept and strategy of the OOO strategy) has so diminished that it barely works for more than a fortunate few
4) significant leverage and margin have been made available to the general (sophisticated retail trader) public as to make the need to get licensed, sign incredibly lop-sided one-way restrictive partner contracts as worthless
in a few words
the game has changed, and it changed many years ago...
PS. hey the future(s) are looking so bright, that I have to wear shades....
Quote from millionaire7:
Does Bright offer futures... If not which prop firm is good for futures.
a trading buddy of mines called me up and said: "guess what?, you're never going to believe this..."
so I said: "what"
so he said: "I just called Bright and asked them what the margin on a typical ES e-mini futures contract was through their firm"
he said, the answer he got back was: "$25,000 per car"
we were laughing so much that we had to hang up.....
I guess they want to discourage trading emini's what with it is so common to get day trade margin on an ES contract in the $500 intraday range from just about every retail brokerage
OOO's - opening order only via excel spreadsheets, gang loading hundreds of trades pre-market on both sides of the market (both buy and sell, which becomes a short position if executed)
pair's trading - whether paired based on a historical corelation coefficient or based on generic corporate products competing in the marketplace
high frequency trading tactics - where you flood the market with orders using a prepared excel (or other methods) spreadsheet of buy, sell, short, option spreads, etc) orders based on some "trigger event"
nothing special to know about these methods and others that are more esoteric
what these effectively do is remove the:
1) investor mentality
2) trading mentality
from the equation and replace it with a frantic, skittish paranoid persective on trading, in the hope of scalping the marketplace without regard to the damage that it does to the marketplace
so profits at all costs.....never mind all the pot marks and wholes punched in the bottom of the ship....
never mind those, just give me profits.....(i.e. socially irresponsible particiption in the markets)