Advice Required

Discussion in 'Prop Firms' started by EurFX, Jun 1, 2004.

  1. EurFX


    I’m looking for advice in relation to proprietary trading. I’m currently trading a 500k (personal) account and looking for more capital.

    I position trade (2-4 weeks) and generally trade the Euro currency contract (CME)

    What are my options if I want to become involved with a prop firm or hedge fund?

    Which firms allow you to position trade futures?

    Is prop trading worth the effort?


  2. fatman


    if you already have a 500k account, forget about prop trading. contact all the hedgefundsyou can any pitch your system to them. if they like you they'll give a a little capital for a test period and if you put up good numbers then they will give you client money.
  3. ForexIam


    have you considered spot FX ?
    leverage 50:1
    Your account $500k x 50 = $25,000,000
    1 lot = $100k
    You can trade 250 lots
    1 pip/lot = $10
    1 pip/250 lots = $2500
    10 pips a day = $25,000/day
    is it enough?
  4. Frankly I wouldn't do either of the suggested. If you have a 500K account, that is plenty enough to trade as a personal account. If you would like to trade OPM and you have a rather good strategy, create your own hedge fund. There is no point in going to see a hedge fund or a prop trading firm.
  5. It generally takes the use of about $1 - $2 million to make a living for a single trader in this business (even the Opening Only strategy uses over a $million). I would suggest using only $100K (that's all we bother with from a trader) use that amount of capital.

    I agree with the last poster about the other alternatives mentioned.

  6. have a good track record and can withstand drawdowns

    and have good risk management

    with such a long holding period

    in my opinon it is possible to "blow up" acct if not careful

    good luck
  7. EurFX


    Advice, comment and constructive criticism are all greatly appreciated.

    Thank you


    ForexIam – Yes I’ve considered spot, leverage is a double edged sword and 10 pips (profit per day) on 250 lots does equal 25k, so does 10 pip loss.

    I don’t want to risk more of my account per trade; I’m comfortable with my current risk level (1.5%). What I’m looking for is more money to trade my strategy on.

    Swoop[TR] – I’d have to agree with Don Bright’s comments that “it generally takes the use of about $1 - $2 million to make a living for a single trader in this business”. At my current account size I’m still struggling, hence why I’m researching my options for more money.

    SethArb- Why does my holding period increase my chances of “blowing up”?

    Thanks Once again!