Bright Trading's new payout model

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Quote from yobo:

I'm sorry I'm not clear on this but let me summarize my understanding. I open a bright account for 20k and elect to open a second account. Bright gives me 5k of risk capital to learn their automated strategies for openings and pairs. Therefore if I lose the 5k, it's bright's loss and I still have the 20k in my trading account?
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Where did you get this 5k from? You have an account (of the firm's money) with a downside limit that if the account is hit, it's closed down (unless you choose to refund it on your own) but you're not on the hook for it. If you make 10k you get half, it resets at zero, different downside 'floors' for traders depending on how many levels they hit....I hope you aren't cash coyne and you're playing dumb to facilitate more advertising for Don! :)

I wouldn't be surprised if this program gets whittled down to a select group of traders, call them micro hedge fund managers, that Bob puts more capital into...kinda a survival of the JVC fittest, so to speak....maybe i'm just babbling :p
 
a definition of true prop firm or prop trader is trader doesn't risk or ask to deposit any money into the firms bank. every broker or hedge fund has a prop trading division. some brokers outsource their prop trading division which goldman is doing to avoid any investigation or accusation of trading against clients like frontrunning and market manipulation or using too much capital and ban on banks and brokers from using more than 3% of capital in trading their own accounts. they might as well shut it down cause they will be audited by regulators.

see how fast goldman sachs shuts down their prop trading division immediately after new finnancial regulation bill and shred and burn any evidence.

and now employees of these brokers or firms get paid like up to 1 million reward for reporting any security violations. rat system. before if you ratted on your company you get fired and blacklisted from the industry. why did you think none of the sub prime fraud was never reported.

these prop firms like don's were under the hedge fund or LLC model where the trader is a member of firm or LLC so not a traditional retail account.

only advantage to thise prop accounts is the 10:1 leverage intra-day and access to ECN.





Quote from Maverick74:

I'm curious why Don has not commented yet on Bright Trading moving to an 80% payout model. Not by his choice, but Goldman's.
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Quote from GGSAE:

Where did you get this 5k from? You have an account (of the firm's money) with a downside limit that if the account is hit, it's closed down (unless you choose to refund it on your own) but you're not on the hook for it. If you make 10k you get half, it resets at zero, different downside 'floors' for traders depending on how many levels they hit....I hope you aren't cash coyne and you're playing dumb to facilitate more advertising for Don! :)

I wouldn't be surprised if this program gets whittled down to a select group of traders, call them micro hedge fund managers, that Bob puts more capital into...kinda a survival of the JVC fittest, so to speak....maybe i'm just babbling :p
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ok. I have my account and sub account. I don't trade regular account and lose 5 to 10k in sub account. I then close out regular acct. How does this help bright?

I'd rather tactically manage a portfolio of non correlated assets and achieve returns through asset allocation and a little leverage and have bright cover my margin on volitle days instead of being forced out of positions and having to take a loss.

Don toughts 30:1 leverage which is great but a 3 percent move wipes you out.

As maverick was saying key to success is equity.
 
On our blog and podcast this week, I discussed Goldman's reaction to Fin Reg and FINRA regulatory notice 10-18 calling for their prop trading firm customers to pay out prop traders 80% or less. I can't post links, so see our site.

This podcast is mostly on forex changes in Fin Reg. I will join this thread with other comments next week._
 
Quote from Robert A. Green:

On our blog and podcast this week, I discussed Goldman's reaction to Fin Reg and FINRA regulatory notice 10-18 calling for their prop trading firm customers to pay out prop traders 80% or less. I can't post links, so see our site.

This podcast is mostly on forex changes in Fin Reg. I will join this thread with other comments next week._
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Why is Echo not affected by this...

www.Echotradeonline.com
 
Quote from NY0BScalper:

I have to say, I don't want to tie up more than $5-10k in capital if I can avoid it and still get full service. I opened up with a firm with $5k and turned the account into six figures... I knew how to trade, but if I didn't have the chance to trade with such a small amount, I wouldn't have been able to have been successful.

The attrition rate is horrible. But if you're a good trader you can take $5-10k and, with decent leverage, make $300-500/day until you build some bank up. Probably less than 3% of the guys who open at at these shops are actually capable of doing that, but it can still be done.
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With whom did you open? If you cannot post it here, could you PM me. Thanks.
 
Quote from Don Bright:



Bob and I have agreed to conduct a more thorough interview process for those who, due to their youth etc. perhaps only have $10K...and, we have our JVc program participants to help with our analysis and review.

Don
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To pick their mind for free? You are not offering a job, and yet you want them to tell you what they know.
 
Quote from yobo:

I'm sorry I'm not clear on this but let me summarize my understanding. I open a bright account for 20k and elect to open a second account. Bright gives me 5k of risk capital to learn their automated strategies for openings and pairs. Therefore if I lose the 5k, it's bright's loss and I still have the 20k in my trading account?
More...

You nailed it with your scenario. I doubt they will answer . Maybe the 5K account would not be allowed until your other account has generated profits that might cover the total of $5K. I would also bet that if they see something not going as they judge, they step in and cancel/freeze the account. If you do not trade the 20K account, they can still make money if your capital is used in other trades. With a SPAN margin the 3% interest on cash they earn can generate 50% a year, which is $10K on a $20K account.

Here is another point. My alluding to the second account in the posts,people may call and dream of it as the end product/service. So they get more leads.
 
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