Does a Prop Firm like this exist?

GlobalMacro90 said:
Hey bob thanks for this insightful post. Your example does make a lot more sense.

This is only available via a partnership/backer? (As opposed to a firm offering such a deal)
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A prop firm would give you 20x leverage or more depending on how capital intensive your strategy is and it's risk profile.
 
GlobalMacro90 said:
Hey bob thanks for this insightful post. Your example does make a lot more sense.

This is only available via a partnership/backer? (As opposed to a firm offering such a deal)
More...

The fact is that I'm part of the NYC trading community. That has overall shifted from Market Makers and backed day traders to hedge funds and CTAs. The Chicago trading community is more entrepreneurial and is more apt to have deals like you are looking for if you know the right people. I do not.
 
Proptrader23 said:
A prop firm would give you 20x leverage or more depending on how capital intensive your strategy is and it's risk profile.
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That requires joining a prop firm, getting registered with them, commingling your assets and risking your money next to other traders and a lock up of 1 year with your funds.

I'm not a fan of JBO type prop firms where your money is first loss unless they provide technology you can't get on your own or you do not have enough money for a PDT account. An example of technology you can't get on your own might be as an equity or option MM group or any hosted ultra low latency set up. These require a lot more capital with higher monthly fixed costs.
 
Correct me if I'm wrong, but OP might not even be looking for leverage. If you join forces with a prop firm, you have access to their fees and infrastructure which is WAYY better than anything you can shop for as a retail client.

That includes not just software and hardware but also dedicated staff that maintains it. You also have a risk manager who sends you home on a bad day.

Don't even be that "I'll just trade single digit clips with IB or AMP untill I'm big enough to pay for that stuff myself" guy. It's a waste of time. Go shopping. When you're ready to take some losses, too, you should be able to get awesome deals.
 
GlobalMacro90 said:
Prop firm that:

Requires deposits from trader, but splits losses? Maybe up to a certain point? For a relatively smaller (but not too small since some of your money is one the line) split compared to first loss?

Also lets you hold positions overnight and doesnt charge interest (aka your trading firm capital not just using leverage?)

Something like (I am making up some numbers here):

Trader puts up $100,000
Firm Puts up $100,000

Trader then trades a $200,000 account, can use additional leverage for a fee (same as a regular IB leveraged account)

Most importantly, losses are split.

So if you have say a 20% drawdown, the $40,000 you lost is $20,000 their money and $20,000 yours?

All for a decent split. Something around 50/50 id think.

So basically deal which is between a full backed deal (all firm capital) and a first loss deal (where trader takes all risk and gets a high percentage, like T3, Maverick, etc).

Does something like this exist or am I totally off the mark?
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Not in the US with regulated futures contracts - exchange registered US futures prop firms are NOT allowed to risk employee (the trader) capital.
 
GlobalMacro90 said:
Prop firm that:

Requires deposits from trader, but splits losses? Maybe up to a certain point? For a relatively smaller (but not too small since some of your money is one the line) split compared to first loss?

Also lets you hold positions overnight and doesnt charge interest (aka your trading firm capital not just using leverage?)

Something like (I am making up some numbers here):

Trader puts up $100,000
Firm Puts up $100,000

Trader then trades a $200,000 account, can use additional leverage for a fee (same as a regular IB leveraged account)

Most importantly, losses are split.

So if you have say a 20% drawdown, the $40,000 you lost is $20,000 their money and $20,000 yours?

All for a decent split. Something around 50/50 id think.

So basically deal which is between a full backed deal (all firm capital) and a first loss deal (where trader takes all risk and gets a high percentage, like T3, Maverick, etc).

Does something like this exist or am I totally off the mark?
More...

where are you from?
there are some good options for prop firms if you live in Chicago, NY or London
 
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