Give him a "get out of jail free" card. Let's see how he qualifies this thread. If he funded 5 futures traders, then he needs 20 million in his account and a max of 10 contracts per trade. Of this I am certain.
If you had a prop firm, how would you develop traders?
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Give him a "get out of jail free" card. Let's see how he qualifies this thread. If he funded 5 futures traders, then he needs 20 million in his account and a max of 10 contracts per trade. Of this I am certain.
This thread should be called "How can I blow up my prop firm?" 
I highly doubt the OP actually has money to trade, let alone a prop firm.This thread should be called "How can I blow up my prop firm?"
Ed Thorpe, he told that story in Market Wizards
Actually yeah, it's relatively easy to get staked (the equivalent of a prop) if you've made your name in the tournament and cash circuits.
I would recommend following the policy every other prop does. Require them to post a minimum funding amount (say 15,000) and you will fund them up to whatever level you are comfortable with. You are providing leverage to them but their money is at first loss, and you cut them if they blow their posted funding.
Ahem A Man For Any Market.
It starts with a better vetting process than what you're currently using to identified traders suitable for your funding.
Also, you do not say anything about the funding amount and if they're still working their other jobs. If they do not have other jobs...you paying their bills (living expenses) to help keep some of the stress away to allow them to focus only on trading ?
They trading remotely from each other or all of them trading together in an office like environment that you're paying for ?
Why would you fund them if you do not have verification that they have an edge ?
You've left out so many important issues that someone funding a trader would not leave out. My point, if your story is true...their poor performance could be due in part to your poor ability to properly support those you're funding.
Seriously, at the minimum, if you want to act like a prop firm...do what they do. If you do not know what they do, use the services of prop firms and try to get funding yourself for the sole purpose to see how they do it.
You can learn about the markets, trading and psychology without funding anyone. It starts with you trading yourself and/or trading with others in person. Preferably, the latter (in person).
Seriously, if you can afford to fund someone (I think you said 5 traders)...you can easily afford to go where ever they're located to watch them trade in person. This will also allow you to verify they have the proper equipment to be a trader.
This (watch them trade in person) would be one of many things that's part of my vetting process.
wrbtrader
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A Man For All Markets, ahem.
He told the story in both books.
His interview was in Hedge Fund Market Wizards.
He may do, but going the wrong way about it.
Some think more computers & monitors will bring in profits.
Others their brains, or connections, or money, or manpower, or indicators.
The list goes on, but to succeed you first need a plan, experience and focus, less distractions the better.
But certainly not starting trading with a young inexperienced team then coming asking for basic advice.
OP could be trolling, for his sake I hope so.
Bingo.
pro day traders go to more high frequency these days. a few traders I know very well was trading on 10 minute data set, now they go to 1-min chart. another one even goes to 15 second chart to scalp a few ticks a time.