This is not the 1st time you have posted complete nonsense. What schools did you attend? Your number of 3.13x is nowhere correct.
Hint: decimal places do count.
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Is it possible to join a Prop Firm if I make 1% a month?
- Thread starter nwoptions
- Start date
Hint: decimal places do count.
Start with friends and family.
Use a pricing structure such as you guarantee them a 10% return and you get 50% of any returns exceeding that.
Can't guarantee 10% then you are not ready to manage money.
Go back about 30 years to the pits. Also, 1% per month is not 12% per year
If you are consistently profitable, then you are your own backer. LOL You don't need anyone else.
Why would you want to work for FO or find a backer?
First, let's ignore your performance for now.
After you prove your ability you'll end up with Many times your current capital.
Access to better technology.
In some cases, benefits.
Commonly you'll be in offices with other traders.
They'll take a split, but that's the cost of having better capital.
Generally, people with backers are still located in the financial center of their cities - often the same buildings as the trading firms and MM firms. FOs can be anywhere and often tax-motivated locations.
Chicago 440 So LaSalle - which still has tons of CBOE MM firms and ex-CBOE people that now have backers.
311 So Wacker and 200 So Wacker - pretty much the same story as 440.
Having said that Chicago is evolving away from the traditional trading local and moving out to the collar burbs.
NY still has a bunch at 60 and 80 Broad.
One issue is you simply can't walk into these buildings anymore.
Can't really speak to other cities.
One of our principals backs dozen of folks, but they are in common locations for synergy and common risk management and technology.
How do we find the people we back?
The number one source is referrals - two is our brokerage relations.
Make friends in the institutional brokerage community or become really good friends with someone with a Bloomberg.
FOs frequently attend shows geared toward their interests/needs. The shows will cost you some $$ to attend.
First, let's ignore your performance for now.
After you prove your ability you'll end up with Many times your current capital.
Access to better technology.
In some cases, benefits.
Commonly you'll be in offices with other traders.
They'll take a split, but that's the cost of having better capital.
Generally, people with backers are still located in the financial center of their cities - often the same buildings as the trading firms and MM firms. FOs can be anywhere and often tax-motivated locations.
Chicago 440 So LaSalle - which still has tons of CBOE MM firms and ex-CBOE people that now have backers.
311 So Wacker and 200 So Wacker - pretty much the same story as 440.
Having said that Chicago is evolving away from the traditional trading local and moving out to the collar burbs.
NY still has a bunch at 60 and 80 Broad.
One issue is you simply can't walk into these buildings anymore.
Can't really speak to other cities.
One of our principals backs dozen of folks, but they are in common locations for synergy and common risk management and technology.
How do we find the people we back?
The number one source is referrals - two is our brokerage relations.
Make friends in the institutional brokerage community or become really good friends with someone with a Bloomberg.
FOs frequently attend shows geared toward their interests/needs. The shows will cost you some $$ to attend.
Obviously not but why don't you give the exact answer.
There are definitely prop firms that would be interested, the question is going to be if prop firm offer is interesting to you. There will be many things to consider.
If access to more capital is worth giving up % of profit.
Will most likely be charged margin interest for added leverage, does this eat into profits too much and make the risk/reward not as appealing? You are already using 2:1 so paying some, but if get 10:1, or 50:1, maybe much more margin charges depending on prop firm.
How scalable is strategy, how liquid are ETFs that you trade? If could scale up X10 without much slippage or added liquidity risk, then maybe worth it to give up 10% of profits to make 10X the money, still make 9X money
Also, being in Canada and not US means many different options. There are prop firms that give lot of leverage but not need licensing, but they are usually not broker/dealer so need to make sure they are legitimate and can trust
If access to more capital is worth giving up % of profit.
Will most likely be charged margin interest for added leverage, does this eat into profits too much and make the risk/reward not as appealing? You are already using 2:1 so paying some, but if get 10:1, or 50:1, maybe much more margin charges depending on prop firm.
How scalable is strategy, how liquid are ETFs that you trade? If could scale up X10 without much slippage or added liquidity risk, then maybe worth it to give up 10% of profits to make 10X the money, still make 9X money
Also, being in Canada and not US means many different options. There are prop firms that give lot of leverage but not need licensing, but they are usually not broker/dealer so need to make sure they are legitimate and can trust
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Sharing a % of the profit with either a backer or a prop trading firm is like taking a loss of that %. If you don't want to incur that % of loss involuntarily, why would you incur that % of loss voluntarily by giving it by somebody just because they give you more money to trade? A 12% profit is a 12% profit regardless of how much capital you trade with but a 10% profit due to a 2% profit sharing is only a 10% profit even if you trade with a larger capital. I would rather keep 100% of what I make than sharing a % with someone who gets to freeload on my work. I mean that's the whole idea of me becoming a trader so I can get to keep 100% of what I make otherwise I will just work for others where I only get 0.000001% of the fruit of my labour. LOL