From Prop firm to prop trading for a Hedgefund

Quote from Cre8UrF8:

The scenarios you mention are the same as if they went to a prop shop. Why wouldn't "the ones that made it big consider this deal"? This deal is ideal for them.
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100% payout. maybe being a somebody at a prop, and nobody at a hedge fund.

above all, hedge funds are not stupid if a guy starts making over 2 mil a year, there is no way they will let him/her take 90% home.
how would the other guys making multiple of that and taking home the same feel? let say one does graduate to trade for the fund, the terms are going to change drastically. thats why the money makers are better off at prop.
 
Quote from Cre8UrF8:

I was at E*Trade Professional so I am now looking for a new place to trade. Before I get spammed with offers I have friends at every prop firm out there and already have been offered the best deals from most firms, SO DONT'T BOTHER SENDING ME OFFERS!!

A friend just introduced me to a hedgefund, and they offered me a deal to trade prop thru a hedgefund, they will give me more than 20:1 leverage intraday start witch can increase later and lesser leverage on my overnights, and I can trade equities, options, and futures, and I can trade remotely or in an office. I believe he said that my money deposit would be put in a customer account so it wil be SIPC insured, I have to double check that. I have my licenses, but because it is hedgefund traders don't need to be licensed.

I did this a several years ago thru Blackwood Trading, if anyone remembers them. I didn't have a problem with the setup or the ways things worked there.

I am wonder why more traders aren't taking this route, especially retail traders who aren't licensed, they can get so much more leverage and probably cheaper rates and I believe the payout is 95%. So you give of 5% of you winnings to get 20+ leverage rather than 4:1 intraday, and more than retail's 2:1 leverage overnight.

I have a couple of friends who have been trading with the head guy for a year are two and they say they trust him and never have problems. I checked him out and he has a very solid background. They say because of the less regulation and smaller amount of traders than large prop firms there are less problems and things are taken care of alot faster. Because of the amount of business they do with their clearing firm they have alot of pull and can get things fixed and done they want it very quickly.

Is anyone else currently trading in this kind of situation, and why not?
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I like the sipc protection for my deposit. I hold trades for weeks at a time so I was wondering what the overnight leverage is with them.

I really don't even like to use leverage but I'm a little cash tight right now... I should be freeing up some capital in 4 to 6 weeks. Problem is I will need most of it again late summer for another project and will probably be in a cash crunch for an additional 9 months after that.

I was planning to commit 100K to trading my newest model with norm leverage but would actually rather start with 50K and 3:1 lev if my account is sipc insured.


Also, could you tell me if they pressure you to trade frequently at this firm.

Thanks

Nick
 
Quote from Hydroblunt:

Agreed, there is nothing special about that deal. The only advantage I noticed is that you do not have to be licensed. Even then, there are prop firms out there that work without licenses.

BTW, Merrill/Echo is not the only place that has hedge funds with those types of arrangements. A place I interviewed at a couple times and still keep in touch with the head runs, a hedge fund which allows traders to trade like it's prop with competitive rates & levearage (and 99% payout). At the same time, they offer additional systems & services that traders may use for a higher commission rate and an 80/20 split.
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Hi Hydro...

could you elaborate on the additional systems with the 80/20 split please.

I'm assuming they are only interested in daytraders when you trade with the 99% payout since they make most of their money from your commish.

What about a place that doesn't care if your a longer term trader because it makes money offa bigger split of the traders earnings as opposed to the commish.

Nick
 
Quote from NKNY:

Hi Hydro...

could you elaborate on the additional systems with the 80/20 split please.

I'm assuming they are only interested in daytraders when you trade with the 99% payout since they make most of their money from your commish.

What about a place that doesn't care if your a longer term trader because it makes money offa bigger split of the traders earnings as opposed to the commish.

Nick
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They have a few automated systems that can be used to jump at opportunities (pair trading, momentum/breakouts) but these do require the trader to be skillful in quickly monitoring and closing the positions out. Kinda like a hybrid trader. They also have a first call service, and it's a real first call not a www.tradethenews.com or the alike. Trading either of these have 80/20 split (trader/hedge fund).

Whatever other trading you do gets the 99% and market commission rates. So you can go in just doing your own daytrading but the opportunity to advance to other strategies & systems is there. That's the kind of people they want, ones that want to learn, expand & grow. They got a few serious big hitters also, both discretionary & fully automated.
 
Quote from Hydroblunt:

They have a few automated systems that can be used to jump at opportunities (pair trading, momentum/breakouts) but these do require the trader to be skillful in quickly monitoring and closing the positions out. Kinda like a hybrid trader. They also have a first call service, and it's a real first call not a www.tradethenews.com or the alike. Trading either of these have 80/20 split (trader/hedge fund).

Whatever other trading you do gets the 99% and market commission rates. So you can go in just doing your own daytrading but the opportunity to advance to other strategies & systems is there. That's the kind of people they want, ones that want to learn, expand & grow. They got a few serious big hitters also, both discretionary & fully automated.
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Sounds like the the kind of place I would like to be If I was daytrading.

Any idea of a firm that will allow position trading with an sipc deposit account and 3:1 leverage for overnights.

Thanks

Nick
 
Well I got a few PM's (thanks for the PM's BTW) and apparently if your money is in an sipc account your going to get your regular 2:1 overnight and 4:1 intraday. I have not been able to find a situation as the original post in this thread suggested....

Nick
 
Quote from domi93:

FNYS-2
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I think you got the threads confused...shouldn't you post the pics in the thread asking what prop firms look like....lol


nick
 
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