Chimera Capital---a problem ?

Mr. executioner is exactly right no doubt about it.

Trader should not sign agreement or should demand payout be twice a month 15 and 31 plenty of time for firm to write check.

Is trader has no profits at that time no money can be taken out.
Terrible to wait until 20th of next month for any profits.
 
Bright and Vtrader allow sweeps more than once a month. A lot of traders sweep to protect profits not necessarily cause they are living check to check. No matter how reputable a prop is no reason to let profits just sit there at risk when you can sweep them into another protected or personal account. You already got enough leverage if you are sufficiently capitalized so need to let idle cash sit there in a prop trading account.

If you do not have enough capital then you can understand why you are restrcited but other firms allow sweeps as long as your haircut is met and you maintain your margin requirements. For me it is my money in the prop account so I only went with one that would allow weekly sweeps if I needed some money taken out.
 
if the prop firms require u deposit u first money in their account. how much percentage u guys can get by u profit? and how much buying power u can get?
 
Quote from raistlin_trader:

if the prop firms require u deposit u first money in their account. how much percentage u guys can get by u profit? and how much buying power u can get?
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100% payout and $200,000 with $5k or less. If you have a track record or can convince people you're not a cowboy, $500,000 with $5k shouldn't be an issue.
 
another reason you should DEMAND that you get paid more frequently is to protect yourself,suppose the firm goes under...at least you are taking some money out.everyone should DEMAND that they get paid more frequently or move to another firm. as i said,there is no additional risk to the firm because a trader will always keep in his initial deposit amount.
 
Quote from raistlin_trader:

if the prop firms require u deposit u first money in their account. how much percentage u guys can get by u profit? and how much buying power u can get?
More...

Since it takes (in general) about $1-$4 million to really make good money, our traders can of course use that much for working strategies (generally we like $15K+ of their money deposited to start with....enough for serious traders to have 'swings' when they happen)....most prefer to keep $50K or more after a short time.

Don
 
Quote from executioner:

another reason you should DEMAND that you get paid more frequently is to protect yourself,suppose the firm goes under...at least you are taking some money out.everyone should DEMAND that they get paid more frequently or move to another firm. as i said,there is no additional risk to the firm because a trader will always keep in his initial deposit amount.
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Aren't you protected by the SIPC?

I work for a firm that pays once a month. I dont understand what the big deal is. Whether you get payed once a month or twice a month, its the same amount, isn't it?
 
Quote from j_s_summers:

Aren't you protected by the SIPC?

I work for a firm that pays once a month. I dont understand what the big deal is. Whether you get payed once a month or twice a month, its the same amount, isn't it?
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Since most props are nothing but sub LLCs trading with a retail account, the account does have SIPC protection in case the firm the account was opened with goes under (assent, genesis, Goldman sachs, etc)

However, your agreement is with the llc you trade with, not the SIPC. Most LLC's are not registered with any regulatory agency and as such, don't have to do anything. They could, for all intents and purposes, transfer all their trading capital, which includes your deposit, to some off shore account and you are SOL.

If you want SIPC protection to protect yourself, then you have to get your own retail account which gives you 4:1 intraday buying power and 2:1 overnight
 
When I ran my firm, we allowed one check per week and you made your request by Wed to get it by Friday or wired by Friday, but I would now only allow 2 checks per month in these times and they have to keep some more capital in reserve if they want to increase size.

Traders that clean out their profits each week and let the firm take the risk are not going to get "any breaks" from the firm if they happen to need one come a draw down or an event that wipes you out.

Trading firms are not banks and thus should not be used as a checking account.

Professional Traders run their business like a business and not a casino. Take your monthly nut once a month, budget that money and take your year end total that is left and bank that. My opinion anyway.....Trade well.
 
If I'm not mistaken, Bright only pays out twice per month. Again, there are reasons for it. You're right, if you have a substantial deposit (like Bright requires), there's much less risk involved for the firm. But, if they only take $5K (or some that don't require any), then there is a lot of risk to the firm to allow withdrawals at any time.

I'm pretty sure that if this was really the only reason for them possibly leaving and they asked, the firm would accommodate them (assuming they have a decent sized deposit).
 
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