Bright Trading's new payout model

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EricP,

I moved to Bright over 3 1/2 years ago with a very profitable strategy. My trading is kept very close to the hip and they respect that. The people who train and share do so as entrepreneurs . They approach Bob and Don with a business proposition and profit from teaching what they know.

Pairs trading is not a secret, and a few 100 traders at a prop. firm are not going to kill the edge. Everyone comes out ahead in my opininion. Rob and the PairCo guys get to sell their picks and shovels, the Bright's retention rate stays high (due to the fact you need millions to throw around any real size, and pairs make probability based trading easier), the traders learn a good strategy.

On the other hand the new payout shoved down our throat by FINRA is a game changer.
 
Quote from EdgeHunter:

Hi Sun Light... :)

Did you include the cost for eSignal or other charting and data feed service at about $200 a month... so it would be an extra $2400... unless i missed it in your writeup...:confused:

also add on Exchange fee each year around $400 to $500 dollars...
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Yeah EdgeHunter, I discounted that. Not esignal's $200, but more like IQfeed $120 or so for 1000 streaming quotes. They are not as top as esignal, but good value for money. Also My comparison is between IB(retail) and BT(prop). with retail IB, you don't need to pay exchange fees.

Over all I think BT is great deal before 80-20.
Also I am sure Don will find a way out of it. If you don't take care of your customers, somebody else will. I think this is the best thread to suggest Don what the new wanna be traders think. I mean considering the present 80-20 catch, and assuming that it is going to be there no matter where BT goes (GS or merril etc..) for clearing. I am sure there are more than me here sitting on the fence. They have to find creative solution that can keep BT in business as well traders interested with value proposition , keeping the "opportunity cost" low for the first year and so on.
 
Quote from Sun Light:

Let me try to understand this 80/20 better.
We are talking about the 1st account only. Let’s leave JVC out of it for now.
If I deposit 20k with BT .
Scene 1: 1st month, I made 10K profit. Does BT get to keep 2K profit? (immediately or eventually)?
Scene 2: 1st month, If I make a loss of 10K. Does BT absorb 2K loss?
What is it? 100% traders capital, Zero % BT’s loss or 20% BT’s profit?
Then it should be called 80-0-20. Yeah...I still think... "they got you by the balls"
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This is the best question that has not been answered yet. When does the 20% come out? If it's at the end of the year, that is much better then if it's on a month to month basis.

And I'm pretty sure Bright will not share in the losses.
 
Quote from Sun Light:

Yeah EdgeHunter, I discounted that. Not esignal's $200, but more like IQfeed $120 or so for 1000 streaming quotes. They are not as top as esignal, but good value for money. Also My comparison is between IB(retail) and BT(prop). with retail IB, you don't need to pay exchange fees.

Over all I think BT is great deal before 80-20.
Also I am sure Don will find a way out of it. If you don't take care of your customers, somebody else will. I think this is the best thread to suggest Don what the new wanna be traders think. I mean considering the present 80-20 catch, and assuming that it is going to be there no matter where BT goes (GS or merril etc..) for clearing. I am sure there are more than me here sitting on the fence. They have to find creative solution that can keep BT in business as well traders interested with value proposition , keeping the "opportunity cost" low for the first year and so on.
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thanks... Sun Light... DTN $120 is for Retail Trader Costs once you are a Series 7 Trader you have to pay professional rates at $130 a month alone for NYSE data... +100 a month for DTN platforms... and then the other exchanges on top of that...so it still comes to about $2400 more a year...
 
Quote from risktaker:

How come EchoTrade/Merrill aren't on a 80/20 split?
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If I am not wrong, 80-20 is GS thing. BT uses GS for clearing. Looking at what changes the industry is going and the heat GS faced before coming out with 80-20 rule, I think other players (Merrill etc) will also follow it. it is just matter of time. Just a guess..
 
Quote from EdgeHunter:

thanks... Sun Light... DTN $120 is for Retail Trader Costs once you are a Series 7 Trader you have to pay professional rates at $130 a month alone for NYSE data... +100 a month for DTN platforms... and then the other exchanges on top of that...so it still comes to about $2400 more a year...
More...

You can use EOD esignal for i think only 25/30 a month, and there's some okay free intraday charts out there (for those that aren't actively trading that much).
 
Quote from Maverick74:

This is the best question that has not been answered yet. When does the 20% come out? If it's at the end of the year, that is much better then if it's on a month to month basis.

And I'm pretty sure Bright will not share in the losses.
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Yup end of year. If it was month by month I'd probably shut my account down right now, lol! If it gets to the point only profitable traders r left....and for guys that don't make money get the boot.....well there's the new biz model! :)
 
Quote from GGSAE:

You can use EOD esignal for i think only 25/30 a month, and there's some okay free intraday charts out there (for those that aren't actively trading that much).
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Yep, eSig EOD is very reasonable but I think that fella was looking to have intraday charting...

thanks... GGSAE... :)
 
Quote from iagainsti:

As to the advantage of the live chat with all of the traders: sorry, but I really don't see that. My logic is as follows:
Most traders lose money, so why would I want to expose myself to a room full of people who are losing money on average? There are probably a few good ones out of the multitudes...as with everything else.
Better, in the words of Livermore, to play a "lone hand."
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Most traders loose money, then is that is exactly what to be learn. i.e. what not to do! :-) Interaction with other traders still can be a win-win situation.No body will ask you to share your game plan.Ultimately Humans are social animal. We live in pack to survive. To stay connected with your species is a need. If you ignore it, it will affect psychology one or other way. Jesse is great, but we all can't be Jesse. But still we can be reasonably successful in trading.
Just an opinion. Individual perspective will be different. :-)
 
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