I'm not sure how Bright does it, but in general the way most firms do it is off of a high watermark so that there is no over charging. If for example you made 10k the first month and 2k was taken out and then lost 10k and the following month made the 10k back, you are still in the same capital position but if any % was taken out the 3rd month then you would have had to give up a % on capital that was yours already.
We don't do the calc's monthly, or take out profits (bad for the trader of course)... we do the actual calculation at year end. Only if the trader draws money out do we hold the 20% reserve (give it back at year end, based on totals). Trader may make $200K, only take out $10K. Trader may make $100K, but take out $25K, we "settle up" at year end. Don
These questions, to me, are private, proprietary to his company, which I, as a business owner, would be be disclosing to total strangers on a message board, no matter how honest a man I was. It really is none of anyone's business.
Seem like appropriate questions to me, especially to ask someone who is actively "hiring" on these boards. It's a crucial question for a prospective trader at Bright and a fair question to ask of any employer who is advertising for your services - how will my income be reported? In most cases you know the answer without asking, you get a W2. You used to get a K1 from Bright. Under the new business model.....?
Good to see you back Don. I was getting worried you had decided to forgo this board as we haven't heard from you in awhile. Are you still doing Opening Orders and the like? Haven't seen a post there in awhile.
Thanks...I've had some health issues (again)...spending too much time on Dr's offices....but doing "ok" - sometimes have to layoff just to keep my blood pressure in line, LOL (just kidding). Don Edit; Regarding the openings...working? Yes. Working as they did in the past, no. More selectivity, more awareness of pairs pre-market (love that part)...."throwing spaghetti against the wall and taking the "free money" - not so much any more. Still doing them? Absolutely.
Don, good to see you back. I had a question for you on another thread. http://www.elitetrader.com/vb/showthread.php?s=&threadid=205268
HI Don, maybe you missed my prior post, have you guys considered changing clearing firms at all... Thanks Nick