Quote from ScalperJoe:
Question for Patak or TST_Hoag:
Would TST allow for a custom combine whereby the trader can trade MORE than the 10 days within the 10 day combine (which gives 30 calendar days, and thus more actual trading days than 10), same for the 20 day combine (60 calendar days), while still meeting the performance criteria?
This question is a result of a discussion from the other thread:
QUOTE]Quote from Maverick74:
Michael, I've got a suggestion for you and I'm curious what your thoughts are on this. I started a thread awhile back brainstorming how I would create a combine that would make sense for both the trader and the backer. I didn't really come to any solid conclusions on how best to do that that would be different from your model.
But now I thought of something.
I think the idea of a time period is counterproductive. Here is something I think makes more sense. You create a combine that has a p&l target. Let's say on a 50k account you set it at 15k. The catch is, there is no time limit in which to hit. A trader simply trades every day or when he wants and builds toward that 15k. It could take him a week, it could take him a year. Now, during this whole process he still has to hit the performance metrics. You still stop them out if they lose 1k in a day. And each week they get graded on whether or not they hit the metrics. What you would do is charge them per week for staying in the combine. They can quit anytime they want, but if they want to stay in and work towards that 15k goal, they would have to re-new their credit so to speak each week. They still would be eligible for the refund by hitting their metrics. So let's say you charged $50 a week. If they are net profitable for the week and don't get stopped out and met 2 of 3 criteria, they would not have to pay for the next week. If the following week they didn't meet it, they could choose to pay $50 to stay in or quit.
Now, let's say someone was down a lot of money and wanted to reset their account. You could offer them the option to pay for the right to re-set their p&l back to zero, say $150. The idea here is that this would take away the incentive of having guys game the combine. Also, it would remove the pressure of having to come from behind in the 4th qtr with 2 minutes left and no timeouts.
I think this would work well for you, as you can get a continual stream of fees every week. And for the trader, they can take their time and work towards that goal. By the time they hit 15k they will have put in a lot of time and built a lot of discipline along the way. You know they didn't get lucky and you get a chance to see them over a longer period.
I think the trader would like this as well, because they can focus on the big picture and not try to game their p&l. I also think traders will build better habits by focusing on hitting their performance metrics each week vs hitting their p&l mark.
I think it's a win win for both parties.
