Bright Trading's new payout model

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Quote from Dustin:

This is an interesting stance. Shreddog is one of the best traders on ET. Most brokers would sell their firstborn to get his business, and your firm can't even offer him a worthy deal. I understand appealing to the constant stream of new traders, but having something in place for the really good traders out there would make sense too.
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Don't misunderstand me or my premise here. Our top, multi-million dollar types, tend to keep larger positions overnight - not closed out each day. Thus a better fit for us. And, we'd be glad to work with Mr. Shreddog - but I assume that he has a "deal he can't refuse" already...if not, I would be glad to chat. The thing is, as accountants, we know our "actual" costs (not just a differential between GS and traders) and having a "loss leader" only works at Walmart.

As far as long term traders, well over half have been with us for 8 years or longer - but, yes, we enjoy training new people as well. We prefer to retention to recruiting, but a combination of both has worked well for us.

As always, just reference this note when and if you and/or he want to chat.

All the best,

Don
 
Quote from NY0BScalper:

Your actual cost is > .002? I find it hard to believe but I know nothing about the GS clearing arrangement. Competitive high vol clearing ranges from .0004-.00005 (5 cents per 10000), don't see how/why you guys pat 5-40x the industry standard.
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NYOBScalper:

what clearing house, clears high vol. at this rate (.0004-.0005) and what do they consider high vol.

Thanks
 
Hey Don,

Enjoy the weekend, and may I suggest a nice restaurant in La Jolla?

Trattoria Acqua, which is located at the cove. Great stuff!:)
 
Quote from ButterMilk:

NYOBScalper:

what clearing house, clears high vol. at this rate (.0004-.0005) and what do they consider high vol.

Thanks
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I made a typo, said 5 cents per 10000, meant 5 cents per 10000, which is .00005 (quad 0 5). That's the low end, high end is .0004 for low vol small operation.
 
Clearing is through GS, then they're going through DirectEdge on monthly volume discounts in excess of 10M shares, so they're at a .0001 to .00015 cost level. Their gross margins are at least a cent, probably closer to two, so 100-200% on every share. I can't understand how they can't be profitable. It's just a matter of volume and frequency and risk management, and going in and out for a nickel, they're making money, don't let anyone try to fool you otherwise.
This says nothing of their hedging against positions. That alone is worth the price of admission.

Quote from NY0BScalper:

I made a typo, said 5 cents per 10000, meant 5 cents per 10000, which is .00005 (quad 0 5). That's the low end, high end is .0004 for low vol small operation.
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Quote from Dr. Zhivodka:

Jezze what a bunch pussies. When I first start in '89 it was .03 per ticket.
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And we LIKED IT! (in cranky old man's voice)
 
What a coincidence, could it be the same Maverick?


http://newyork.craigslist.org/mnh/acc/1878296447.html
Equity Option Trader (NYC/Remote)
Date: 2010-08-03, 11:24AM EDT
Reply to: careers@mavericktrading.com [Errors when replying to ads?]
With our best year in business, we are looking to add new traders from the NY area for this year. Maverick Trading will put up the capital to trade and our traders keep up to 80% of all earnings. No prior trading experience is necessary as all new applicants will undergo a training program. We are searching for motivated people with a math/finance/economics background we can teach to manage and control the risks of the financial marketplace.
To get more information about the trading position, the firm and the recruiting process, start the application process which will take you through a series of short videos and information pages. This process will answer most questions about our recruiting process and end with our online application form. After the recruiting process is complete, you will be contacted by a recruiter for a suitability interview.
http://www.mavericktrading.com/apply.php Apply Now
Our top traders can make $50k+ per month
Location: NYC/Remote
Compensation: commission based
Telecommuting is ok.
This is a part-time job.
Principals only. Recruiters, please don't contact this job poster.
Please, no phone calls about this job!
Please do not contact job poster about other services, products or commercial interests.



Quote from Maverick74:

Actually this is not completely true. Let me explain. In order to get this so called "backed account" you need to already fund a regular 25k account. So essentially you have 25k with the firm. Then Don creates a separate sub account for the JVC account or whatever he calls it. You have to fund your own account to get this sub account. And the account is only 10k. And if it loses 5k you are shut off. Don knows he is going to make that in commissions and haircut charges on your 25k account. I may be off on the exact details but this is the general idea.
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Quote from Shreddog:

They are if you don't clear through GS.

And your rates aren't .003, they are .005 for anyone who trades algorithmically, ie. small shrs/ticket.
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Volume again - I was told you trade a lot (over 5 million = .003 for everything). Even over 1 million is .004 first 1,000, .003 over 1,000.

Don
 
Quote from LEAPup:

Hey Don,

Enjoy the weekend, and may I suggest a nice restaurant in La Jolla?

Trattoria Acqua, which is located at the cove. Great stuff!:)
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No car this time, stuck in Barona (they're picking me up a the airport)....but I'll check it out next time. Thanks...

Don
 
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