Registered: Jun 2011
08-31-12 03:54 PM
Excuse my ignorance on the matter but are there any US prop firms that allow you to trade futures on the CME, i.e. the 6E or ES.
The reason being is that for my strategies the total round turn cost is too high.
eg. if I trade 100 times per day (yeah I know I am crazy)
average win 3 ticks - 50%
average loss 2 ticks - 50%
then I am net +50 ticks at the end of the day.
If I start off trading 1 contract then my volume is only 2000 per month which means I can only get like $3 total round turn costs. so my +50 tick profit of $625 will cost me $300 in round turn costs so I only net $325.
now consider if my
average win = 3 ticks 45% strike
average loss = 2 ticks 55% strike
then I am net +25 ticks for the day but after fees I only make $12.50!!!!!
I know guys if I was trading a 5 lot then my monthly volume would 10,000 and I could get my costs down a lot BUT I am not ready to trade a 5 lot and would much prefer to work with a prop firm that only pays the member clearing fee and pay a profit split.
so I am looking for a firm where I am executing at just the clearing rate like 19c round turn on the ES but pay them say 25% of my profits, it works out a lot more for me and opens up a lot more strategies.
all help appreciated.