Proprietary Trading vs. CTA

Quote from the1:

Correct but you aren't on the hook for the $XXXXX if you find yourself escorted to LaSalle St. one day. Trading losses accumulate indefinitely until they get worked off before a trader gets paid.

My desk fee was $1,200 per month but the commission rates they gave me were better than any rates I've gotten from a retail broker. They definitely try to nickel and dime you to death. If you consistently break even they will keep you on forever LOL.
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I got quoted $1900/month for connection/software fee! I am not sure yet though, if this is going to be right out of my pocket or applied to trading profits (if there are any). The thing is I don't need any bells and whistles and I'm not a high volume trader. I have a feeling that most of that fee will go to the firm as risk-free income.
 
Quote from chinook:

I got quoted $1900/month for connection/software fee! I am not sure yet though, if this is going to be right out of my pocket or applied to trading profits (if there are any). The thing is I don't need any bells and whistles and I'm not a high volume trader. I have a feeling that most of that fee will go to the firm as risk-free income.
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Chinook, you have to be more specific. If you are asking for TT and access to several exchanges that in fact is about the going rate for a Pro license. Please provide specific examples...
 
Quote from bone:

Chinook, you have to be more specific. If you are asking for TT and access to several exchanges that in fact is about the going rate for a Pro license. Please provide specific examples...
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Yes for TT FIX connection. I researched it and indeed that seems to be the going rate. But there are places that offer the same connection for per trade basis. And it's only $0.05 per side..

http://www.advantagefutures.com/pdfs/Trading_Technologies_Info_Sheet.pdf
 
Quote from chinook:

Yes for TT FIX connection. I researched it and indeed that seems to be the going rate. But there are places that offer the same connection for per trade basis. And it's only $0.05 per side..

http://www.advantagefutures.com/pdfs/Trading_Technologies_Info_Sheet.pdf
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Yep, Crossland does as well - I have at least 40 clients clearing them both. But that prop firm may not clear Advantage, and in fact neither Advantage nor Crossland have a proprietary trading operation.

Listen, I am going to be frank here - you are going to have to accept forcible rape from whomever firm or pool or fund or person decides to back you. It is the price of admission. Once you prove yourself, establish a track record, and build up some capital, then you have bargaining power and flexibility. But right now, unless you choose to go it alone with a modest account, you have to accomodate a prison buddy.
 
Quote from bone:

Yep, Crossland does as well - I have at least 40 clients clearing them both. But that prop firm may not clear Advantage, and in fact neither Advantage nor Crossland have a proprietary trading operation.

Listen, I am going to be frank here - you are going to have to accept forcible rape from whomever firm or pool or fund or person decides to back you. It is the price of admission. Once you prove yourself, establish a track record, and build up some capital, then you have bargaining power and flexibility. But right now, unless you choose to go it alone with a modest account, you have to accomodate a prison buddy.
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I didn't mean to say that Advantage has a prop trading operation. But it looks like TT offers per side pricing for lower volume traders. I just wanted to point that out. Most likely the firm I'm dealing with has that arrangement with TT too...

Thanks for being frank there... I like your analogy :) I need to talk to several firms and see which one offers a more decent 'prison buddy'...
 
Chinook, I actually think the much bigger piece for you is security of your IP. IMO that trumps all other considerations and quite frankly that should be your focus. FWIW, I have clients over in London and Gibraltar carrying laptops over to Schneider's trading floors each day with our spread models on it. Do not store any IP on the firm's system.
 
Quote from bone:

Chinook, I actually think the much bigger piece for you is security of your IP. IMO that trumps all other considerations and quite frankly that should be your focus. FWIW, I have clients over in London and Gibraltar carrying laptops over to Schneider's trading floors each day with our spread models on it. Do not store any IP on the firm's system.
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Thanks, I agree. I indent not to store any IP on their systems.
 
bone said:
DT, you are referring to prop equities firms - we are speaking about prop futures firms like the Chicago prop futures business model, they are completely different animals. No valid comparison.
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Hi Bone, I have got a 3-year live futures trading track record using a black-box algo which has produced an average return of 52% per annum and a Maximum Drawdown of 25% with a Sharpe Ratio of 1.35. My algo's average holding period is 16 hours, trading 23 different US futures markets. I want to get a prop trading job at a Chicago prop trading firm, can you please help me Bone?. Apart from "DV Trading" what other Chicago prop firms are there that trade futures and offer a good profit split (like 50/50)? Finding it hard to get this info via forums and google searching. Really appreciate any help from Bone or anyone else on this forum. Many thanks, Regards, Rod.
 
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