Earn2Trade-Ryan
Sponsor
Hi! Thank you for the questions and the points that you have raised. Let me try to address them to the best of my ability.
1) Type" of "Pro firm"
Real Tier one "True PROP Firms" dont charge people they hunt for talent in same way as any other business, by screening people on some sort of entrance test + past experience + interview and then test them during evaluation period. When did you hear Google/ Ford "Charging" a combine or a test or a Gauntlet fee to prospective engineers who want to work in these firms?
This model of your and others seems to be based upon "grab as many test fees as possible and hope very few pass and very few will be funded. and even if few have to be funded that money actually comes from accumulated test fees charged
I believe you disclosed that only 20% have been funded ( your competition avoids that question) so would the following be correct
as an example 100 apply and pay $2500 Boot camp each = 250,000 Cash in, 20 pass and funded to the tun of ?
Our business model hinges on our belief that trading can be learned by anyone who is dedicated enough. You are right of course, anyone can apply to a proprietary trading firm and try to pass whatever those firms post as requirements for employment, which oftentimes include criteria which may go above and beyond many retail traders.
So far however we have found that it is infinitely easier for people to get into trading if it is possible for them to see an endgame, where the risk they are taking is limited to the price of the education package or the “exam fee,” which is the price of The Gauntlet™. Having said that you are free to submit your trading records to Helios without taking The Gauntlet™ even, they require a profitable trading history of six months.
Please note that while we did discuss the 20% success rate so far, the customers, who are now funded traders purchased one of our earlier, now discontinued packages. The Bootcamp as a comprehensive package has only been available for less than 10 days. With the Bootcamp launched, it is possible to purchase The Gauntlet™ without the education for the one-time fee of $349. Discount the data fees and company overhead, and it doesn’t really look like a money-grab anymore.
I’d like to add that the Bootcamp was designed with the specific goal of increasing the 20% success rate that we quoted earlier.
2) When an applicant passes the Boot camp etc
- what is the actual a/c size he is given
- Is it actual cash amount or Notional?
- If cash then is it only about day trading? or overnight? because as you know if it is only day trading for a mere $500 on 1 ES anybody can pretend to fund a trader to the tune of $125000 "Notional"
- If actual then again same question day or overnight
When an applicant passes The Gauntlet™ at the end of the Bootcamp or without the Bootcamp, they start with the account size of 10k-25k generally. Account size can be reviewed with the prop firm, as time progresses and profits are shown, but this is all cash amount and available margin from day 1. Offers can change depending on the performance of the candidate, but this is the general trend.
It is possible to hold positions overnight, no restrictions there. Also, no restrictions on the number of contracts and no “initially available funds” or other “unlockable extras.” The funding offer is based on The Gauntlet™ performance and is available margin, for overnight trading as well.
3) Regulatory:
To join an equity prop in USA one has to pass various exams set by regulators'
- Is it true that if it is Futures trading such licencing is not necessary
To be Prop offering Equity the firms need to be a Broker Dealer , with futures is that not necessary?
Once a trader is funded, he/she becomes a “limited partner” of Helios. It is legal to trade within the framework of a proprietary trading firm, as one of the partners, without a license from the trader’s part. As a limited partner, the trader is essentially trading his own money (the firms). In addition the trader receives a K1 tax statement at the end of the year where they can receive the tax benefits of trading vs. ordinary income / 1099 like many competitors.
4) Your structure: so why is it that the company that sells the "education" is different than the company ? and is it really different the ownership seems to be same who is a Prop? is it because
a) As a education seller are you are not subject to any regulatory scrutiny and licencing ( It seems in US anybody can out out a shingle and sell "Trading education " with tall claims with no regulatory oversight
b) The CTA can't sell education?
c) IS the firm you mention as the prop firm a CTA if it is then where are the published past results
The reason that the education company and the prop firm company are different entities is because they have completely different business models.
The education company makes money by through the education courses, mentorship sessions and yes, examination fees. We don’t think there’s anything alarming about that. Many companies make money off of education and/or examination fees. We recognized that this business model already exists and believed that we could do it better and fairer to the candidates. We can’t argue on principle if you disagree with the ethics of the business model, but if that is your position at least we can assure you that we generate very little profit from The Gauntlet™ in comparison to the business overhead.
I’d like to also add that all companies are subject to regulatory scrutiny and we take our obligations very seriously. We teach within the limitations of what is allowed, and we do not make false promises or offer nonsense promises of million dollar trading methodologies. We teach our students about the market, risk management and technical analysis. We want our students to learn how to trade for themselves, and how to make their own indicators in the future.
The prop firm on the other hand simply generates profit the way a prop firm is supposed to, which is through profitably trading. It can also lose money if trades are unprofitable. These two businesses are fundamentally different in their structure and profit models. The prop firm is not a CTA.
I’d like to add that our goal for Earn2Trade is to develop it into a standard for trading education. We envision The Gauntlet™ examination achieving broad recognition, and to that effect we hope to recruit more prop firms who accept it as we continue our growth.
The CTA has nothing to do with Earn2Trade or Helios. The ownership is completely different and the companies are neither related nor act in concert in any way. I have my Series 3, Series 34 and Series 30 licenses and I am a principle of a CTA. I am a professional trader. These are the credentials I bring to building Earn2Trade.
Something is not kosher here I hope I am wrong
It seems this business model is great for the promoter but for end user? I doubt
Now now I know people who are already converted and think that this is best thing since sliced bread are going to attack me with following points
1) Everyobody does not have maths degree and cant join a top tier prop firm purely on his / her merits , so IT IS OK to sell such (questionable) deal!
2) Getting funded is not that important the "Education" is worth the fee! ( if it is then why the education seller is not managing public money and instead selling the "Education" )
3) A university degree does not guarantee success in life so why should a consumer expect success from this "Education"
WOW comparing a $xxx a month Combine or a Boot camp by small business to a established University which has millions in assets + manpower before they can sell their "Education"
4) It is free world so nothing wrong in selling such dream .. buyer beware is that all that is required to be disclosed .. screw the unsuspecting
I need to reiterate here, we are not trying to recruit people to a CTA (although it can be an eventual path via Helios), and Helios is a proprietary trading firm, not a CTA. I own a CTA myself, but that has nothing to do with Earn2Trade’s business model. As a proprietary trading firm, trading only its owner’s funds, Helios is not required to publish its trading history.
“Now now I know people who are already converted…”
I’m not sure if you wanted me to respond to these points, but if you don’t mind, I will.
- Thank you for all the questions you have raised. Hopefully it seems less questionable now.
- I think we may have answered this question already on this forum. We are traders and educators, who decided to make a company to bring those things together. We don’t believe that the profession of being a teacher, educator or Mentor, or however you want to call it, is reserved for people who are not good at a certain field, and therefore have to resort to “faking” it through “education.” Please allow us to say that it is entirely possible to be passionate about something, and teaching that very thing at the same time.
- We are not trying to compete with a Harvard finance degree. You are right about that, 100%. All that ever speaks in our favor, if you measure us against academia is the promise that at the end of your education, if you pass the exam, you WILL without fail, get an offer from our partners. You can of course attain the same education, and a lot more at a university, if the level of knowledge you desire is that deep, if you have the time and the funds.
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You don’t agree with the business and that’s your right. We wish you the best!