Quote from pairsarbtooo:
i agree when you are building yoru method and honing your discipline..a certain amount of hour are probably necessary....when i built my trading systems i was a small trader by day and a full time qc engineer for DENSO at night...and also typically i networked the engineering computers to run tests at night to test my ideas...i did this for 2 years.. then i got a job at an MA firm for 2 years and kept my night job as the QC engineer.
so...in 4 years i probably put in 18 hours a day for 4 years.
HOWEVER..and read this...the 80/20, 90/10 rules still apply. now my typical trading day lasts from 4am pst to 9 am pst..generally
thats about 4 hours or maybe 5 of really focused effort PERDAY now.
I have computerized, outsourced and eliminated the "fluff" .
You can choose to work 40 or 50 horus per week if you want....heck some people even lose money cause it somehow validates them to others in this business...but i don't. Im not telling you what to do...Im just telling you what i do.
One more thing, ALL prop firms will try to convince you to use strategies that are either A. volume excessive or B. capital intensive (so they can justify the "we give our traders $1MM capital, or they will say something like ,"these days it takes a million to make money in the markets.)...or C. Both A. and B.
This is 95% complete garbage. Rule #1: never let the owner of a comission oriented business tell you how to trade. He will NEVER want you hone your trading to 80/20 or 90/10 efficiency. He will be genuinely interested in you trading all day long, every day. Volume is the enemy of simplicity in my opinion.
As my name implies, I did arb both MA and stat pairs, but also I traded uncorrelated pairs. At the end of the day, all strategies are directional, you are always betting on a direction al change.
I save money in fees and comss now by taking just ONE SIDE of the market (the short side) being a fairly low volume guy and not having to use a ton of buying power to get the job done.
This is at odds with most prop model unless they keep a substantial percentage of your profit.
I walked into one such firm recently. I walked out of there thinking I would never bring my business to such a firm...ever...in my life.
Trade your own way. Trade efficiently in terms of time in trades, shares traded, etc. Don't be tempted to do more volume for breaks in fees or commissions if it doesn't add value to your account. And finally, never listen seriously to the owner of a firm that makes its money from your fees (instead of your profits) and tries to tell you how to trade. Think for yourself.
Your business profit = what you make from the markets - what you give or lose to the markets - the fees and commissions you pay. Always strive to make the latter approach the minimum necessary. In this day and age, most all clearing is the same Goldman Penson ML....pay the least you can. Those firms that promise you more for paying ultra high fees need to make their claims in writing, which when pressed, they won't.
Be smart and effective, and don't budge on the important aspects of this BUSINESS. it is a Business, not a charity for the firm or the market.
Also remember, if you are the least bit profitable over time, the firm should treat you like a GOD. Don't forget more than one out of every 10 guys walking through that door dropping 5 10 20 k down in a leveraged account walks out broke.
Even small profitability over time is like gold. So strive for the best returns possible, don't over trade or spend more time than necessary in trades...it will pay off.
