Yannis, it appears to me that your question was asked for one of two reasons. 1) you are just smugly telling us all you are succesful on your own with profitable strategies, capital, and software/platforms that work for you; and thats great more power to you, a lot of traders on here are also fortunate enough to be in that position. or 2) you dont have all the answers and are looking for them with your then "devils advocate" post. its an honest question, not a rip, so dont take it the wrong way. some of Don's aforementioned benefits of a prop firm is why i am joing one, primarily access to capital.
Ron, It's hard for any of us to really understand why someone asks a question, so, my suggestion is, don't even try. A couple years ago, I had simple questions, like, how do I learn to trade? Now, I still have them as you can see from my original post, but they are a bit more involved, like, what do I do now that I can trade? It's natural. Good luck with your new venture.
Can anyone discuss how a trader/investor raises seed capital to establish a track-record for a strategy proven via live pro-forma data?
Don you keep comparing track records. I really do not want to get into a debate with you but you keep making the same assertion. When asked I have posted FMB's track record. Are you saying yours is better. If not please drop that line about your record with new traders. In the last year or so we were about 50% with traders new to our style and office. (I am leaving out the guy who was already profitable trading listed stocks when he got to our office) We started 4 guys backed with our money. two are profitable and two were let go. We had two other guys start. One is profitable and one has been profitable lately and should get even soon. Perhaps depending on when the year started we had another profitable guy. In previous years we were better than that. (Finally, we have a guy who started end of august who is down less than a thousand and I have not counted him in these stats.) So while I prefer to leave stuff about my firm off this board I felt I must correct your public statements. Now I am not proud of that record. I believe we could do better. And, I know you have a different business model but please do not make any more sweeping statements that might include FMB trading. P.S. you know I traded at Bright in 1996 and have stated you guys were fair to me and I liked your firm. So I am not trying to start an argument ----just setting the record straight. John McConnin FMB Trading Group Inc. Now I will go back into my elitetrader identity of jem.
i think you make a very strong case!!!! i think it is time for someone to put up or HUSH!!!!!!!!!!!!!!
OK, sure,why not....let me know how many traders you had start in the last 5 years, to see if we're comparing apples to oranges. The first 10 years of our business we had 100% success, because there were only a few traders associated with us (1979-1989). Bright Trading numbers are simply this. About 50% of our traders make it one year, and about 70% of our traders are successful with one year behind them. 80% after 2 years, and nearly 100% after 3 years. These are the same numbers I have quoted here, and the same numbers turned in to Regulators. This includes well over 1000 traders....how about you guys?? Oh, just in case anyone wants to know, we have approximately 700+ (including those still taking their tests). I know you traded with us a few years back, and I have nothing bad to say about you or your firm ( I assume this is Dave F.) and if not, his partner. I can actually thank Dave for forcing me into a "crash course" back in 96 (when I was in Ca. and Chicago) to catch up with all the minutia related to the Prop trading business (I have never been a real "details" type guy, and was constantly getting "grilled" on my chat board and emails about details, which really helped)...I'm glad you guys are doing well, and there are other good firms out there, and there are those who are not so good. Things change in this business, as you all know, and we have continued to change and grow over the years. All the best!! Don
Based on your numbers, only 35% of your traders make it past 2 years. Although this may be above the industry average (I have no idea), I think it is misleading to keep saying that your traders, and the methods you teach them, are successful. Yes it is true that your 'successful' traders are successful, but overall you have a 65% 'failure' rate over a 2 year timeframe.
Let's be real... What does is take PRESENTLY to be a successful trader TODAY? NOT how a firm made a new trader successful in 2000. NOT how big a firm is. NOT... Right now. Walk into the office you are considering. Speak to the traders that are willing to assist you. Check out the stability of the equipment. See that the systems used are up to date. Make certain that the training program is continouos and one-to-one over a 6 month+ period of time. (1 week training is a "sales" gimmick) Make sure you are getting a competitive deal. Don't make broad comparisons. Analyze the specifics of the office you will be trading at. What does the success of another trader in another office have to do with your success? Many of the figures presented on this thread have absolutely NO bearing on how to choose a place to start trading.
To be honest Don, it kind of bugs me that you try to take credit for Bright's profitable traders in general. A large number of Bright's successful traders either: (a) already knew how to trade before they came to Bright, (b) were taught by someone other than "Don the All-knowing" such as an office manager or another trader, or (c) never attended his class and taught themselves