Funding new traders Search for a better business model

Discussion in 'Prop Firms' started by traderjo, Jul 25, 2018.

  1. traderjo

    traderjo

    My genuine aim is to find if there is a better model as compared the other models ( hence the mention of other models)
    In that regard I was dissecting all models including my own idea of the First loss funding model and get attacked like this! that too on personal level!
    Instead of helping you are just attacking me for questioning other models!
    Model 1: top level Pro and cons ( No cost to trainee/ Need a Uni education no mass appeal)
    Model 2 : Leverage provider based on First loss. Pro and cons NO education ( Risk capital reqired + past performance, limited mass appeal
    Model 3 : Paid test model ( the one i am critical off,Limited capital to entry, Mass appeal but could be a trap for new people)
     
    #41     Aug 8, 2018
  2. Maverick74

    Maverick74

    No one is attacking you, we are attacking your idea. It sucks. LOL. Look, it's very simple, a trader either has an edge or doesn't. Now, some of the old school chicago prop firms(the ones Bone mentions) would hire guys right out of school. Obviously these people have never traded so they don't have an edge. But the firm thinks there is a high probability that they have the skills to find the edges, so they take a shot on the young guys. Some of them pay off, some of them don't. The only other model that works is you already have a certified track record and like the previous poster mentioned, you shop it around to recruiters or capital allocators. These are the two models. You just introduced a new term, called mass appeal. I'm not sure what you are talking about but I assure you, prop firms have had huge mass appeal for decades. Everyone I knew in Chicago would have loved to work for DRW, Jump, Geneva, WH Trading, Chopper, Breakwater, Transmarket Group, etc. These are great firms. And yet you claim there is no mass appeal? LOL. If anything, there is too much appeal as those firms were swamped with resumes and it was highly competitive just to get an initial phone interview that lasted 5 minutes.

    You seem to be the spokesperson for what people want but clearly you don't understand this business. Can I offer you a suggestion. There is another forum, I probably can't mention their name on here but it goes by the initials WSO. Just do a google search and it will pop up. Click on the trading forum. There are 100's of threads there of guys asking how to get into these firms which you claim have no mass appeal. But you can go ahead and start a thread and ask these guys if they would bite on your model, which at this point I'm not even sure what it is. But regardless, shop it over there. You will get a lot of responses from real traders looking for real jobs.

    Honestly, I'm trying to be helpful here. I ran a regional office for a prop firm in Chicago for 6 years. At the time we were a pretty unique firm in that we offered a boutique approach where traders could trade options, futures and equities. Most traders put up risk capital, but we selectively backed a few guys and we backed our market makers 100%. I have a lot of experience in this area. I'm trying to give you the best advice I can but you keep going off topic talking about other firms.

    Have you put forth your model yet? What is it? Put the details here and on the other forum and many of us will give you honest feedback. As of now, I have no idea what it is. What is so special about fintech? It's the most over used word in the market right now.
     
    #42     Aug 8, 2018
    DeltaRisk and vanzandt like this.
  3. bone

    bone

    Well, he has heard from two very experienced traders with deep roots from the Chicago proprietary trading firm industry, and the VP of Institutional Sales for Lime. And the backstory on Lime was that there was a very successful proprietary trading forefather - much like Timber Hill and IB.

    Suffice it to say, he hasn't liked the feedback to date.
     
    #43     Aug 8, 2018
  4. bone

    bone

    If you start a thread, and ask for feedback in your OP, it's bad manners and poor form to insult the feedback.

    If you're looking for feedback only from naive sheep then by all means say that in your OP. Say in your OP that you want to know what naive, ill-informed outsiders who would like to become traders but have no trading experience are looking for path-wise in order to become traders. I think it's reasonable to do that. But you didn't do that.

    If you start a thread, and you set forth in your OP a numbered list of what you consider to be industry needs and shortcomings, you should probably make sure that your value statements are indeed factual before you publish those proclamations and statements. If you had done that, things would have gone smoother for you I'm guessing.

    If you start a thread on a topic in which you are lacking knowledge and information, and if there are more experienced and knowledgeable persons proffering statements of fact or learned opinion through industry experience that are contrary to your preconceived notions and prejudices, it is quite possible that they are right and you are wrong. Insulting them won't help your cause.

    Good luck with your quest.
     
    #44     Aug 8, 2018
    .sigma and Maverick74 like this.
  5. John9999

    John9999

    Is anyone aware of other Prop firms than Earn 2 Trade. I cannot make my strategy work with them, because they demand one trade per week be executed.

    thank you in advance
     
    #45     Aug 15, 2018
  6. timcar

    timcar

    You would think that with D. Trump being the "Capitalist" he is would change/relax some of theses RULES that are in place so as too give everyone a chance too make some big money.
     
    #46     Aug 16, 2018
  7. Pekelo

    Pekelo

    Call me stupid but can't you just buy/sell something then 5 seconds later sell/buy it back? Rules are there to be broken...
     
    #47     Aug 16, 2018
  8. John9999

    John9999

    yes ,, that would work. I am not comfortable with the arrangement. You pay to enter the program and have your trades monitored and assessed. And, end the end, there is certainly no guarantee to be funded.
     
    #48     Aug 16, 2018
  9. 1percent

    1percent

    Everyone, I've been reading this thread and I "think" there's a misunderstanding from both sides: Bones & Maverick's (i assume are Vets) vs Traderjo's (Rookie). So let me attempt to clear this up. Traderjo you can correct me if I'm wrong.
    1st, I'm a newbie to ET and what lead me here was me trying to find a way to get more leverage with a legit prop firm, and not get ripped off by fake educating firms and churn & burn shops. Models 1 & 2 the Vets mentioned are legit but more difficult to get into, because of what you guys mentioned. What Traderjo is trying to do is find out if there's another "legit" model where guys like me don't run into the two ripped of methods I mentioned? For example, I was looking for intel on a shop called Maverick FX, and came up with this thread when I typed in Maverick...funny what search engines come up LOL. Anyway, I'm pretty sure everyone here has heard of them; they're all over the internet advertising training and capital once you pass $$$k course. I mean think about it paying all those fees up front (so call "training"), the seat fees, brokerage fees, platform fees, etc. Before you know, you've already plunked $8k and haven't even made a trade! A guy could just save the $8k to buy a bluechip for $7.99. At least a guy can make or lose $ on the trade and not on the stupid fees. Traderjo does this sound about right?
    As for me, I've been retailing it for awhile and been doing ok as a position trader (to save on fees), but now I need more leverage bcuz 1.5 leverage ain't cutting it anymore, which is why I'm poking around ET looking for insights on how to find a "legit" prop firm.
     
    #49     Sep 14, 2018