The Perfect Prop Firm

You talk about value added, so let's look at what you can offer.

(1) training -- this is the most important for newbies etc. You can offer basic education and let the noobs learn by trial and error over months (basically the same as reading etc). It's really hard to imagine that your best prop traders are going to give their time away from their own work/give away their strategy that took time to develop to someone they don't know or care about. Even if there's significant compensation to the experienced trader, would it justify their time and investment? You got to decide then if you want to take noobs at all or just people who have actually cash flow. If you take noobs, honestly tell them what they're getting and what's to be expected.

(2) technology--unless you're going to develop your own ultimate platform, there's already good tech out there. Low end, sterling, laser, lightspeed; high end tt, cqg.

(3) money--you've got to decide whether to take noobs or not. Then you've got to decide if you're going to be a glorified broker: great leverage, lower rates, best payout possible, or be a traditional prop firm and take in only the best and have everyone sink or swim together.
 
Quote from rmorse:

You asked what the perfect shop would be to me. You asked the question. I'm interested in the tradition set up where a firm hires traders, pays them based on what they make. Or, I'd look to a Fund of Funds to get an allocation of capital as a Portfolio Manager. I'm also not talking at $50K. This is the way the business is run outside JBOs, and you know that. I would not be interested with under a $1MM allocation to start. I'm not a 22 year old trader just starting out.
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Sure Bob, and of course you would have 3 to 5 years of sheets to show the firm right? Of course, what you are looking for then makes sense. To be honest Bob, I have met very few guys with sheets. Everything is hypothetical. But Bob, there already are tons of allocators out there and more then enough in your back yard. That model is pretty competitive and very different from the "prop" model. If you have the sheets, go find yourself an allocator. I agree 100%.
 
Quote from WS_MJH:

You talk about value added, so let's look at what you can offer.

(1) training -- this is the most important for newbies etc. You can offer basic education and let the noobs learn by trial and error over months (basically the same as reading etc). It's really hard to imagine that your best prop traders are going to give their time away from their own work/give away their strategy that took time to develop to someone they don't know or care about. Even if there's significant compensation to the experienced trader, would it justify their time and investment? You got to decide then if you want to take noobs at all or just people who have actually cash flow. If you take noobs, honestly tell them what they're getting and what's to be expected.

(2) technology--unless you're going to develop your own ultimate platform, there's already good tech out there. Low end, sterling, laser, lightspeed; high end tt, cqg.

(3) money--you've got to decide whether to take noobs or not. Then you've got to decide if you're going to be a glorified broker: great leverage, lower rates, best payout possible, or be a traditional prop firm and take in only the best and have everyone sink or swim together.
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Sterling is crap. Most off the shelf software is. Some are better then others of course.
 
Quote from Maverick74:

Why don't you stop by my office in person and tell that to my face. You want my cell number and office address? Time to put up or shut up. I'm real, let's see if you are.
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traders know if I am real or not, salesmen have a cell number and an office address.

otherwise, you crack me up.

Traders who know what they are doing are not going to fall for your or any other prop trading scheme.

Your problem is you have integrity in a dirty business.

This is nothing new, it's been done for centuries. You start out as a loan shark, and then progress to a prop firm, and if that works out you become a bank.

good luck on your journey to legitimacy (if you call a bank legitimate.)
 
Quote from Maverick74:

Sterling is crap. Most off the shelf software is.
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Lol. Mav, goes straight to the point.

I least liked Sterling. It seemed like a shaky clumsy software that had a video game feel.
 
Quote from oldtime:

traders know if I am real or not, salesmen have a cell number and an office address.

otherwise, you crack me up.

Traders who know what they are doing are not going to fall for your or any other prop trading scheme.

Your problem is you have integrity in a dirty business.

This is nothing new, it's been done for centuries. You start out as a loan shark, and then progress to a prop firm, and if that works out you become a bank.

good luck on your journey to legitimacy (if you call a bank legitimate.)
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Coward. Just like I thought. Oh yeah, people know you alright. I bet you can't find a single alias on this board who will vogue for you. I haven't sold anything in my life. I've been in this business for 15 years. Nor am I selling anything now. And I have never "run" a firm before despite your repeated accusations. I have a lot of guys on ET who WILL vogue for me and know who I am. Why do you keep up this charade? You know you don't have a leg to stand on. Like I said, you like to talk tough as an anonymous poster on a forum. But I have this funny feeling you would be a little more quiet in person. LOL.
 
I have never traded prop and am unlikely to but I've got two cents to throw into the pot. In business it does not take long to figure out if the people you are depending on are in fact fair and dependable. What that boils down to is if there is a ZERO front money deal on the table backed up with reasonably state-of-the-art technology and a competitive payout you put your ass in the chair and see if the comfort level grows.

Since everything in life ends up being an equation whether there is a better draw and lower payout out or the opposite is less important than that there is an open door and a guy behind the desk that will have a straight up conversation if your needs require an equation that is different than the guy at the next desk. As long as the equation works well for the firm as well reasonable people can get it done before the chicken wings run out.

Mav, you broke in with guys that put some major numbers up nearly everyday. You know that reasonable people can almost always cut the deal so it works for all. My guess is that the prop model has a set of problems that relate less to how the equation is tweaked and more to up and out for the cream. The best traders, unless they have a strategy that requires expensive cutting edge low latency support, leave prop firms because they can do as well or better from their home in Larchmont or Greenwich as they can from Broad or W. Huron. Since the AAA and even AA trader acquires the capital over a reasonable period of time and decent technology (again dependent on strategy) has become affordable you have an ecosystem that has ease of exit out the top.

It is not that prop is a dinosaur it is that it is caught in an evolution that picks up speed at the top every year. Just like the attractive woman who has a few years on her but still looks good the salad years for prop firms are, if not behind them, at least most probably not in front of them.
 
Quote from Maverick74:

Coward. Just like I thought. Oh yeah, people know you alright. I bet you can't find a single alias on this board who will vogue for you. I haven't sold anything in my life. I've been in this business for 15 years. Nor am I selling anything now. And I have never "run" a firm before despite your repeated accusations. I have a lot of guys on ET who WILL vogue for me and know who I am. Why do you keep up this charade? You know you don't have a leg to stand on. Like I said, you like to talk tough as an anonymous poster on a forum. But I have this funny feeling you would be a little more quiet in person. LOL.
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well, you got that one right, in real life I am very shy and some call me a hermit.

I don't take anything anyone says about me personally. Firstly because almost no one other than you ever says anything about me and secondly because I know who I am and don't care what you think about me. And thirdly because I have no image to keep up because I am not selling anything.

Like I said
good luck
 
Quote from Swan Noir:

I have never traded prop and am unlikely to but I've got two cents to throw into the pot. In business it does not take long to figure out if the people you are depending on a fair and dependable. What that boils down to if there is a zero front money deal on the table backed up with reasonably state-of-the-art technology and a competitive payout you put your ass in the chair and see if the comfort level grows.

Since everything in life ends up being an equation whether there is a better draw and lower payout out the opposite is less important than that there is an open door and a guy behind the desk that will have a straight up conversation if your needs require an equation that is different than the guy at the next desk as long as the equation the firm needs to live with is also a winner for them.

Mav, you broke in with guys that put some major numbers up nearly everyday. You know that reasonable people can almost always cut the deal so it works for all. My guess is that the prop model has a set of problems that relate less to how the equation is tweaked and more to up and out for the cream. The best traders, unless they have a strategy that requires expensive cutting edge low latency support, leave prop firms because they can do as well or better from their home in Larchmont or Greenwich as they can from Broad or W. Huron. Since the AAA and even AA trader acquires the capital over a reasonable period of time and decent technology (again dependent on strategy) has become affordable you have an ecosystem that has ease of exit out the top.

It is not that prop is a dinosaur it is that it is caught in an evolution that picks up speed at the top every year. Just like the attractive woman who has a few years on her but still looks good the salad years for prop firms are, if not behind them, at least most probably not in front of them.
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I agree with you for the most part. But a big part of this business is about cost and leverage. And by leverage, I'm talking more on the market neutral side of the equation. Technology is a huge factor. Having speed of execution on the retail side is non existent. Sure, if you are just punting on the direction of the ES or Euro, you don't need prop and they probably don't want you. But for guys with more sophisticated strategies and edges, they need customized software, low rates, leverage and it helps to have other guys around them when they need to refine those edges or look for new ones.

True, most of ET is pretty unsophisticated. It seems most guys here try to pick tops in the market or use some sort of martingale system. But there are a group of guys out there that fit well in the prop model that are a little more "advanced" let's say in how they go about their trading.
 
Quote from oldtime:

well, you got that one right, in real life I am very shy and some call me a hermit.

I don't take anything anyone says about me personally. Firstly because almost no one other than you ever says anything about me and secondly because I know who I am and don't care what you think about me. And thirdly because I have no image to keep up because I am not selling anything.

Like I said
good luck
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So why do you post here? Do you really think anyone here cares what your opinion is on the Euro?
 
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