Is it possible to join a Prop Firm if I make 1% a month?

N

nwoptions

Hi all, I consistently make 1% a month in the stock market. The volatility of my portfolio is very low. I haven't had a down month yet.

Would a prop firm accept my application when they see that I make 12% a year? Or is that too low a return?

Thanks
 
I assume you're talking about a true prop firm where you need a license and will get a boat load of leverage.

If that's the case, I think a prop firm would be ok with that, especially since you must be very tight with your risk. As a matter of fact, a lot of leverage would probably be a great fit for you. Just keep your risk tight and make that 1% on your buying power.

I went retail for awhile and found it to be incredibly mundane. I'm also very tight with my risk, so I got licensed again a few years ago, and now my leverage is at 50 to 1. Good luck.
 
Questions to ask yourself first:

Is my return/risk unleveraged?
Is Prop firm split making it worthwhile?
Geography?
Should I consider other avenues like FOs or backers?
Consistency? Competition? Confidence?
Comparable benchmark - if any?
Other relevant experience?
 
nwoptions said:
Hi all, I consistently make 1% a month in the stock market. The volatility of my portfolio is very low. I haven't had a down month yet.

Would a prop firm accept my application when they see that I make 12% a year? Or is that too low a return?

Thanks
More...

If you are making consistently 1% a month, you don't need to join a prop firm. Your profit rate is compounding each month, why join a prop firm to pay a cut of your profit to others? LOL
 
ETJ said:
Questions to ask yourself first:

Is my return/risk unleveraged?
Is Prop firm split making it worthwhile?
Geography?
Should I consider other avenues like FOs or backers?
Consistency? Competition? Confidence?
Comparable benchmark - if any?
Other relevant experience?
More...

My return is leveraged. I use 2:1 margin.

I'm located in Canada. I don't have access to portfolio margin. I'm with IB Canada and they don't allow this for Canadians.

If you don't mind sharing, where would I find backers? I've read about traders getting backers in Market Wizards (eg Tony Saliba). Do I need a contract in order to receive money from a backer?

I trade 5 etfs a month to diversify my portfolio. My trades last 1 month each typically.
 
Last edited:
TheDawn said:
If you are making consistently 1% a month, you don't need to join a prop firm. Your profit rate is compounding each month, why join a prop firm to pay a cut of your profit to others? LOL
More...

The 50:1 leverage sounds attractive. I understand that it comes with risk though.
 
Last edited:
TheDawn said:
If you are making consistently 1% a month, you don't need to join a prop firm. Your profit rate is compounding each month, why join a prop firm to pay a cut of your profit to others? LOL
More...

Are you suggesting that I find backers? How easy is it to find them? Thanks
 
If I read your post correctly, 1% monthly compounding is 3.13x per annum, you don’t need backer, just compound your own money.
 
You must log in or register to reply here.
Back
Top