Traders with astonishing track records can trade their own money and make a fortune without any opm or partners, headaches or hassles, just as 99% of real professional traders are not involved in the trading education industry.
yes yes yes you make sense. but please recognize that it is an entirely plausible scenario that young upcoming traders lose a lot of their bankroll before becoming consistent. Once they become consistent (or close to consistent), they need capital and they might have run out of it by now. Partners/backers do have a place. I am told this was the usual practice in the pit age.
Back in the 90's all prop firms backed their guys. Back then from what I can remember the "put up your money, we give you leverage, we take no risk, take 10-20% of profits, and collect commissions" firms did not exist. Or at least were not popular. Then as trading got tougher after 2002 or so more prop firms decided they didn't want to back losing traders as things got tougher and either switched to having guys put up money or downsized and kept only the best.....or got out of the business. The bigger ones/successful ones still do back guys 100%. As far as today, there are still some firms that back guys 100%, but they are very tough to get into. You either have to have a very good track record/strategy or get hired out of college and go through training. Most of these firms have payouts of 40-60% with some of your profits held back in a side account (usually very little though).
Discretionary, directional, futures firms? Not spreads, not hedging physical treasuries but trading futures.
Wow!!! You change your tune faster than a cover band in a honky tonk ... lol. You throw it out there as if everyone knows about this business model and then .......................!!
I said I know such firms exist, I talked about pit trading days business models. I don't know names of such firms though A good trader needs to be fast in going from long to short and vice versa. I thought that is a good trait. Peace Edit: Anyways let me throw a name that I know will do a % PL....Jane Street but its incredibly hard to get into. So not very relevant for this discussion. I don't know names of firms that are easier to get into such roles, but I do know such firms do exist. Another name that is easier to get into comparatively GHF Group.
Oh ... when you came back with this: "To be honest, I don't know names of any firms that will do such a deal. However, I do see 100% economic justification to have such a business model for a firm- " The "I do see 100% justification" part sound like you went from Patsy Cline to Queen. It sounded as if you reverted to the theoretical. My mistake.
Trades lasting few minutes and mostly style of day trading............Priston might be an exception, but day trading usually results in bankruptcy, especially if trading on huge margins. Just few words of advise...........
Yes. Directional/outright trading firms that give guys discretion. They are out there. Contrary to belief on ET...there are still firms that have guys doing the old fashioned outright trading. While there are far fewer out there compared to the 90's....the good ones still exist. Except unlike in the late 90's when all you needed was a pulse rate to get hired, now you need an excellent track record and be willing to work your ass off.
I think people need to be more clear when they say "day trading". Firms that are well capitalized, hedge funds, etc have day traders that make a ton of money. Priston day traded at a firm that had a ton of capital. Stevie Cohen day trades at a hedge fund that day trades billions. There are plenty of well capitalized firms that have day traders doing great. This new prop firm model which has day traders putting up tiny amounts (5-25k) and lets them leverage out 30-40 times day trading does and most likely will result in that trader never making it (or as you like to put it bankruptcy......kinda harsh). So I agree with the what you say in this category. But to say that day trading as a style leads to only blowing out is absolute bs. Can it ? Sure...if the trader can't trade. But there are plenty of swing traders and longer term traders who have imploded as well.