Exactly, Bright is no longer in the commission game, they are in the lending money game. Nothing wrong with that in itself, but it affects the advice they give to their traders, which is frequently not in traders best interests but in the interests of Brights bottom line. For example, They bashed low-volume intra-day momentum trading in favor of first, high-volume scalping of low-priced stocks in the earlier part of this decade, and second, in favor of overnight pairs during the last few years. They are not in the business of traders making the most money for themselves, they are in the business of making the most off traders that they can. Again, nothing wrong with that, but they shot themselves in the foot by not partnering with better traders in a true prop model in favor of incubating mediocre traders that they could steadily milk over the years. Those traders that could barely make a living before are just bleeding away now. Meanwhile the true prop shops that worked to maximize their traders' take-home (sometimes at the expense of the owners' bottom line in the short term) have committed highly skilled traders with the capital to be patient in low-vol, HFT difficult markets. You also see it in their encouragement of low-capital traders to carry large overnight positions - "only" 2%, 4%, 6% haircut interest works out to 13%, 27%, and 40% returns on Bright's capital (with 6.66 leverage) - no wonder they want guys to break even and hold the maximum amount of overnights, and no wonder they dont want traders putting up large amounts of capital. And no wonder they bash the hedge fund model - they dont want well-capitalized traders paying profits to investors to manage/borrow their money, Bright wants to charge the haircut themselves. Meanwhile when those traders struggle, they take 100% of the losses at Bright and have no cushion or support. Bright can run their business any way they want to, and they are certainly not the only churn-and-burn prop shop, but they are one of the more outspoken ones in claiming that they aren't churning-and-burning, which seems a little off.
I prefer the tightened rope (always have some onhand) and you get lower sperm count as an added bonus...I don't know why we're not having any luck honey, something must be wrong with you!
your post answers the question in main why Bright has never commented on the FTT (financial transaction tax)
What arrangement or set up is at 95%.....is that the futures proprietary or equities only model? TIA! BTW, I have always heard good things about your firm!
I remind everyone this thread is about Bright's payout model so please stay on topic. If you want to have an ongoing discussion with someone else about their firm please do it via PM. And this is not a thread about Maverick's firm (who has promised me, on many occasions, that he will not discuss here even if it's just answering questions). Thanks.
Yes Magna and I have honored that promise. I have also asked posters to stay on topic. Now back to Bright Trading...
Don, would love to get a response to this earlier question. I know a previous poster mentioned 1000 shares is not what it use to be however I would argue that really depends on capitalization. If it's true that Don really is taking guys in with 10k (which I highly doubt) but 1k shares is a lot of risk not just in trading terms but in terms of commissions. A guy can easily blow through 10k in 3 months while trading flat gross.
Actually this is a complete failed mentality imo....why not compare various prop models in this thread under the current market and regulatory conditions. It is very obvious things are changing right before our eyes and this overly sensitive approach to some of these threads is very disappointing imo. And I do not give a damn if this firm or that firm does or does not advertise here.....sheeesh. So we only get to talk about firms who advertise here.....come on??? If mav had initiated promoting his firm that is one thing, but I asked a very simple question and I have been here since 2002 for cripes sake......and much of this thread is a stupid back and forth between some posters......lets get that garbage resolved and move on with discussions about prop payouts (of course the Bright model too). Bob is not even here to answer the Q's so lets get something of value to talk about.......OTHER PROPS! :eek: :eek: