Well to add my two cents here to all of this....
I actually do run a group but it operates differently from what Patak does and what Mav's is is proposing. I do not pimp my product here, as frankly this cast of characters is unworthy for the most part, but u can search my previous posts to see that I've made mention of it.
That said, here's how my program works:
I run a CTA and am an AP of an introducing broker. I do not charge any upfront fees for you to enter the evaluation phase. However, I do require you to open your account through my introducing broker. You can select any major brokerage you like as we have relationships with all of them. I disclose and am disclosing that I will be paid by the FCM commissions on your trades. It does not affect your commissions as it is the same as if you joined the FCM on your own.
I realize traders have a real problem with this (especially that gmst guy) but what's the diff to him if I make mine and it comes out of the Fcm's pocket? I provide a service, deserve to be compensated, and am not asking the trader to ever pay me anything.
Traders are required to open their own account thru me with a minimum of 5k. They can trade any style they like, any way they see fit. I provide trade evaluation software that will not only keep track of their results, but also offer a complete diagnostic of their trades based on the actual price action that took place during their trade and offers stats that will help maximize trade potential or correct screw ups. In fact, Patak almost ended up licensing the software, but they low balled the cost of the software and didn't want to pay fair value.
In any event, the onus is on the trader to upload their trading results. The trader has the option to cherry pick their start date, however once they get started they must provide weekly results as long as they want to participate in the program.
So what do the traders have to achieve? Just the best risk adjusted return possible. Low drawdowns, positive expectancy, consistency. That's it. However, like Mav's deal, the minimum evaluation period is 6 months, unless you want to provide recent previous 6 months of live trading results.
What do u get in addition to the trade evaluation software? You get my and my traders live trading calls, educational support, and one on one mentor ship with a senior trader. We will help you with whatever it is u need, but ur time is limited by your trading volume. Therefore bigger traders get more attention. Oh and the occasional instructional live trading webinar for newbies.
So here's how it typically goes: trader opens account and starts trading. Experienced traders go for it and newbies tread lightly trying to gather all of the free info they can. Experienced guys typically start their evaluations within 1 to 3 months. Upon submission of their activity they are told where they need to improve. Upon achieving that improvement, the trader is offered a deal usually around 6 months. Every deal is different based on the trading style. The trader is required to get the proper licenses (series 3 and 34 for Fx) and then they join the CTA. At that point, they are not required to put up any of their own money (like a first loss deal) and they trade a house account. They have a max position size, max dd, and max leverage that they have to adhere to. Risk management is stringent. Eff up and you wings get clipped. Do that too often, and you are out.
Newbies usually stay in the program and trade, all the while allowing me to collect commission. When they are ready, they start the evaluation.
What I have found:
Most traders should not be backed or trading institutional money! Sorry gang, that is a fact. Even if you are profitable! Running institutional money is a game. It's not good enough to just be profitable, or to have low draw downs. You have to be the total package.
Running this program for 2 years, we have exactly 3 traders out of 7 offers. Yes 2 traders turned us down because they didn't like the terms of the deal they were offered, and 2 went on to bigger better things just recently. Such is life.
But I am damn happy with the 3 I do have and the previous 2 as their combined records as well as my own stuff has allowed me to receive more capital.
This is how I run my business. I dont care if u dont like it. I dont care if you think its a scam. Please dont PM me as I won't respond (i use headhunters) The purpose of my response was not to shill but to demonstrate how real businesses operate. There are far too many delusional morons on this site who believe in everything for nothing and then have a problem with capitalism to boot.
I applaud Patak for actually coming here to defend himself... I usually just tell people to eff off. Perhaps it's this new millennial generation who have this sense of entitlement, have no work ethic, and were told from the day they born that coming in behind 2 others in a three man race was third and not last.
Mav's has been on this site for a long time and is old school. Shill or not, most of you would be lucky to still even be in the game for as long as he has. Rather than spending your time trying to debunk all the bs, learn to trade and rise above it.
Or don't, I don't care.
