I've been trading the past few months with 250k bp, 500 share max per position, which I assume is not very much leverage at all, compared to the guys who have 1 or 2 mil and 5k max shares -- yet it seems like I am at the top or bottom of the p/l list almost each and every day at the office where I trade. I'm primarily an event-driven/news trader, when earnings season hits, mid-four figure days are pretty common. On 500 share max position limit, how does this rate? Additionally, how much does one's profitability rate in negotiating commissions? Doesn't a trader's longevity become a factor, even if one's volume is not extraordinary?
Today I ended up a little over 10k, they raised my shares to 600 max/position. I am up a little over 60k this month, one losing day at -3k, biggest drawdown has been -5k intraday. I know one month does not mean alot, but wondering how do these numbers stack up, especially with a 600 share limit. I've been trading over a decade but this is my first year daytrading prop, been out of equities for the past 5 years, so just getting my bearings performance wise.
I'm assuming that you don't work with the guys that have the 5k max share limits? If so, to be on the top or bottom of the p&l list doesn't make much sense. If you've only had one down day this month, then you can hardly be at the bottom of the pile, unless everyone in your office is making money everyday and on some days you make the least. With the consistency you're claiming, I reckon you're in the driving seat for comm negotiations. Not the smartest guy on the planet, but your trading situation doesn't make too much sense to me.
That's the thing, I think most guys here have around a 3K position size maximum, but their p/l's are far less volatile. Being on top or bottom is more a reflection of the traders in my office, they seem to avg + or - 1k or less everyday. It's true I wasn't at the bottom of the pile too many times this month, but usually when I have the losing day I lead the pack by 2x or more. Can you clarify why my situation doesn't make much sense? Again I'd also like to ask -- is profitability that much of a factor in commission rates? I'm paying basically IB (interactive broker) rates, but I am trading in office using their hardware and t1. I would like to think I could push for better rates soley on my figures but they really don't get anything out of my profits except perhaps assurances that I will be trading for some time in the future. I avg about 1.5mil shares/month but that could go up substantially on higher max position sizes.