Trading Loss at Swifttrade?
- Thread starter Dream
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Related question: will firms like Assent, Echo, etc give some overnight leverage to folks who are doing serious portfolio analysis?
For instance, if I carry a portfolio with a 95% VaR of $5k - could I carry a portfolio overnight of $100k using $10k? Seems like it would be extra work for them to verify portfolio analysis but they'd also make good money in interest.
again...does it make money consistently? and how do you really determine that there is a 5% chance half of your cash goes poof overnight? seems excessively high to me...
and also...they don't make much off your interest. for us we only pay about $11 per $100,000 held overnight. clearly your risk would be much much great than that.
Well the 95% VaR would mean that there's a 95% chance that losses would be limited to $5k. I guess that's a fairly risky example. VaR would be determined by a monte carlo simulation. Maybe 99% VaR of $5k would be a better example. There's still a 1% chance that losses would be more than $5k.
Let's also say that the 1% CVaR is $8k. That means if there is that 1% loss, the average loss would be $8k.
As for making money consistently, let's say it's a momentum strategy (just giving a strategy that has been shown to fairly consistently make money).
That $11 for 100,000/night would mean a 2.9% annual rate. That's a pretty darn good rate. Can I use some of that money to put together a bond portfolio?
My guess is that most prop shops aren't sophisticated enough to do this sort of deal for overnight leverage with VaR/CVaR constraints - at least not for some guy with $10k.
The bottomline...if Swift isnt making dime one on you then they will see you to the door. If Swift is making lots of cash on you, then they will do whatever they can to support you.
Most jobs in general are just like this. Either you are an asset or a liability. If Swift believes you are a liability, then they will write you off.
Most jobs in general are just like this. Either you are an asset or a liability. If Swift believes you are a liability, then they will write you off.
....you are worrying about something that isn't even an issue. you would need the strategy that consistently makes money first. you don't have that so why are you complaining about prop firms not being able to accomodate your non-existent strategy. it's like saying "man i am going to make billions of dollars with this strategy but i don't know if there is a good enough bank to hold all of my money..."
I'm not complaining nor am I worried about anything. I'm just trying to get a feel for what deals are out there. I mentioned momentum as one of those vanilla strategies that has been shown to make money consistantly over a long term. I guess it's just partly curiosity and partly preparation to understand what's feasible.
You may be a good trader, according to what was said about you on ET, but I doubt you are a good teacher.
In trading, 95-99% will fail (I really believe it now). This clearly runs against the market behaviors: up, down or sideways. Statistically, 33% of the trades should be winners vs. 33% losers. But the reality is never such. The reason for so many losers is _____________________________________ (If you are a profitable trader, you know what I mean). Unfortunately, the process of becoming a profitable trader is a long one, which means almost all traders walking through your door will walk out as losers, they just don't have the time to survive those losses.
swift trade won't give $300,000 on your first day
you'll be starting with trading 100 shares in sprint or pfizer or some slow moving stock.
you'll be paper trading before they even give you $50,000 in buying power.
keep dreaming,,and don't forget that wall street is scam for you morons to hold on to toilet paper
that punk ass stocktrder3 is a typical wall street moron...or investor moron who should take his shares up his ass like the hundreds of hedge fund managers and fund managers who get paid for doing nothing of value.
you'll be starting with trading 100 shares in sprint or pfizer or some slow moving stock.
you'll be paper trading before they even give you $50,000 in buying power.
keep dreaming,,and don't forget that wall street is scam for you morons to hold on to toilet paper
that punk ass stocktrder3 is a typical wall street moron...or investor moron who should take his shares up his ass like the hundreds of hedge fund managers and fund managers who get paid for doing nothing of value.