What type of a track record do prop firms think is good enough prior to funding you?

Well,with any luck you may be the next Kullamagi :)


Laissez Faire said:
Oh, I would most definitely have taken the opportunity if I got it, but I don’t think it’s realistic given my age, background and location. While I have a degree, it’s in engineering and not in finance/computer science which seems to be the preference for these type of jobs these days. Further, I’m based in Norway and proprietary trading is virtually non-existent here. To my awareness, the only trader jobs here are at power and energy trading desks and they typically require that computer science background and I would guess they are mostly looking for younger graduates.

Without a track record (and even with one) I’m probably perceived as just another retail gambler (which may very well be true).



Directional trading of US index futures – primarily focused on ES. Holding period is minutes to hours focusing on the larger swings intraday and always flat by EOD.
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"Interesting — whats your beef with Sharpe?"

No beef with any metric.
Sharpe doesn't help much in allocating capital amongst traders-
It does not do a great job of measuring a performance metric where leverage and derivates are involved-
Hail Mary trades and this is a constant concern-
Have to look at the whole firm-
Rarely meet an applicant with a good Sharpe, who can explain why as opposed to how to measure-
Doesn't highlight potential stars and compensate them accordingly-
Doesn't lessen the costs of over sight-
Tells me who you were and may not give me a good idea of who are now that you are trading firm money-
 
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ETJ said:
"Interesting — whats your beef with Sharpe?"

No beef with any metric.
Sharpe doesn't help much in allocating capital amongst traders-
It does not do a great job of measuring a performance metric where leverage and derivates are involved-
Hail Mary trades and this is a constant concern-
Have to look at the whole firm-
Rarely meet an applicant with a good Sharpe, who can explain why as opposed to how to measure-
Doesn't highlight potential stars and compensate them accordingly-
Doesn't lessen the costs of over sight-
Tells me who you were and may not give me a good idea of who are now that you are trading firm money-
More...
now that's a reply - thanks. makes sense
 
Laissez Faire said:
Right. Can you elaborate on your statement, “If you understand what those investors want…”?

There was a guy here in Norway who launched a hedge fund two years ago with no track record as far as I know, but he had 20 years of experience as a broker (salesman) and talked the talk. 2 years later he has a track record (publicly posted) with pretty much net losses month after month.



Right. First of all, can we define OPM? If OPM means a hedge fund or similar, it sure is not something I’m pursuing anyway. Now, on the other hand, there are countless examples in Market Wizards and elsewhere of traders who have received ‘backing’ from private individuals to help them start out their career – most of these without any track record as they were just starting out.

The latter would be more interesting and realistic, but still not something I’m pursuing actively.

The path of moderate and slower gains that you’re proposing is probably the most realistic one for me. I’ve no doubt that if I risked down and traded more conservatively my results would be more consistent. Sure, I won’t be bringing home big bacon anytime soon, but with a longer term perspective it could amount to something eventually.

There's no doubt on my end that the lack of my success so far is partially attributed to trying to make too much with too little and too fast.
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OPM means an outside investor.
They have a specific need and if you provide that need and your returns and risk are appropriate for that need, they will invest in you.

It's like selling cars. You don't sell a Ferrari to a pig farmer. He wants a pickup truck.
 
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