First off, you're absolutely correct - no fewer than 30 calls and emails referring to this thread, LOL....all good, and after chatting, everyone seems to have a better understanding of what we're doing. Now, to your friend. If he came to training, I suggest that he come again in September (free of course, much more info, added extra days etc.). If he funds an account, and stays the 90 day period showing dedication and discipline (hopefully profitability), then he would be an ideal candidate for the JVC program. Hopefully his JVC mentoring, meetingg, and homework will help him in his "normal" account. I have never said the "normal" account would be $5k, I said that many existing traders have started JVC with only $5k in their account because they had been struggling...and we wanted to help them. For your friend, I would allow a $10K start as long as he is proficient in Windows, Excel, and willing to work at this...basically pass our JVC Manager's interview. Tell him ot get the paperwork started, study for the darn test, and report back to you in 6 months or so. Regarding the guy who owes us money, he is paying it off. And, yes, many who have made money in JVC have carried that over to the "normal" account...exactly as we hoped. We don't ever concern ourselves with "outside" investors. We have made more money trading than with BT, but BT has never had a losing year of course. We keep as much money as need be in the Firm at all times. Regarding "hard pitch" - we suggest that a training plan and boot camp is the best way to speed the learning curve up - the results are obviously better than with those who don't train at all. "Boot camps" means they have joined the firm and are trading with us. 1. Week long school open to everyone. 2. Boot camp - 2-4 weeks of hands on live trading for members only. Additional mentoring programs are available to those who want more interaction...but no one is ever left alone - everyone is online every second of the trading day with their direct manager/mentor/team etc., adds to their comfort level. I have 400 on my Yahoo messenger, LOL. Look Mav, we are not for everyone,,,,and as you know, trading is not for everyone....and there are those who expect too much for too little effort - we do what we do, with the help of some of the best traders around...and so far, so good. Another thing...we are not "struggling" as many are because of, not in spite of, our efforts in responding to what we see going forward. We stopped "parking" orders for rebates when we learned how awful HFT was, we instituted the JVC program when we saw so many that had been impacted by HFT and other market conditions. Are our revenues down, of course, but we have always been very cost effective - since we bought out our partner Eddie, no planes, no yachts around here - still driving my 2005 Dodge, Bob in his 10 year old car, LOL. At some point I start to feel that I'm being punished for being so open on here....I was reminded of my old friend Gene Weissman when one of our ET'ers called about this thread, and about how Gene and I were the only ones who actually seemed to open up from a firm owner perspective (I know you've always shared your expertise too). Sorry we lost Gene in a MC accident, but we were able to bring on his partner Leiberman on board at that time. But, that being said, I enjoy what I do, and the 95% positives I get vs. the "challenges" seem to make it all worthwhile. And, as you noted, a chance to share with the public. Heading out for Barona in San Diego, playing in a blackjack tournament, visiting some friends - but I'll check in later. Don
Don, from what I can tell the only thing that has changed with your business model is you take 20% of the profits. No change in deposit, no change in commissions, which are still higher than retail. Your JV program sounds interesting, but not a game changer. Why would I, as a high volume profitable trader who doesn't trade pairs and am flat every night, want to join Bright vs just trading my capital at IB and getting lower commissions and 100% of the profits? It seems your only niche left is traders who either a) don't have much capital (and likely not much skill) or b) skilled traders carrying very large overnight positions that are willing to pay your haircut.
Don, no need to feel punished for being so open. You said you got 30 calls and e-mails! I call that good business. OK, I've dominated too much of this thread. I'll let others jump in and comment. You can go to San Diego in peace now and not worry about me writing another long dissertation you have to respond to. I'll see what my buddy thinks about your offer. Good luck in the tournament. Wow, 24k page views. Looks like you and Barron both came out nicely on this.
You wouldn't want to join Bright - and I have sent many of my traders in your position to IB (they should be paying me for that, LOL). Rates in the .003 -.004 range aren't that high, however. Don
They are if you don't clear through GS. And your rates aren't .003, they are .005 for anyone who trades algorithmically, ie. small shrs/ticket.
Your actual cost is > .002? I find it hard to believe but I know nothing about the GS clearing arrangement. Competitive high vol clearing ranges from .0004-.00005 (5 cents per 10000), don't see how/why you guys pat 5-40x the industry standard.
This is an interesting stance. Shreddog is one of the best traders on ET. Most brokers would sell their firstborn to get his business, and your firm can't even offer him a worthy deal. I understand appealing to the constant stream of new traders, but having something in place for the really good traders out there would make sense too.