I am looking for a firm to start as a prop trader

Discussion in 'Prop Firms' started by scalpmaster, Oct 12, 2007.

  1. I have been trading for 4 yrs...but due to constraint in initial capital, I can't implement many strategies I have in mind...

    As Don have pointed out, doing directional trades with capital less than 1mil has a much lower chance of survival due to drawdowns and non-directional methods usually requires a large capital...

    Therefore I am looking to trade for a firm and develop further on my fx basket spreads and other spread/pairs trading approaches for indices and stocks...

    email me at scalpmaster2006@yahoo.com.sg

    please do not ask me the details or automation of my system as the term "proprietary trading" means I can't reveal everything.
  3. cstfx


    An account that is funded w/50k is usually (mostly) a practice account. While your numbers are impressive, practice accounts are not a reliable indicator of anyone's trading ability as you tend to take risks that you wouldn't do if it was your money on the line. We have seen this many times in the forex realm when someone tries to show how good a trader they are by using practice accounts as a barometer of ability. Usually, a person will keep trying a practice account until they get the results they want. (not saying this is what you did, but trading your own money is a lot different than trading Monopoly money.)
  4. From the looks of it, there are not many traders/firms with capital sustantially larger than mine in ET...:(

    I was thinking of at least 10X, a mil to start off with...
  5. You've almost doubled your money in 17 calander days right? You'll have your own million $ in a few weeks, right?
  6. erniej


    why would you need a prop firm's help if you are trading forex (which is what your track record shows?) you can get around 50-1 on your money through interactive brokers. i thought prop firms were mostly helpful for those trading equities b/c they normally can only get 2-1 through retail brokers while props give them 10-1 or so.
  7. Forex is a highly leveraged instrument. It doesn't mean as your capital grow larger, you can increase your amount of trades proportionally...because your drawdowns will be amplified too.
  8. I am not sure if all the prop firms are only into equities...

    some may be into forex giving you cash leverage on top of standard forex 1:100-200.

    If Prop firms are not into forex, then boutique fund houses (mini-hedge funds) with 100mil-1bil trading assets might be a better venue.

    Anyway, fund management is a little different as your capital becomes bigger... if you are still trading leveraged products...

    my returns in % will definitely be significantly reduced even though my absolute returns may be more.

    Sept was a good month because of the recovery so I was more confident to aim for about 90% but over the course of a year, the average return is about 30+%/month...
  9. i.e. your dynamic stops (from your hedged positions in opp direct) may not be able to protect you completely.

    Also, to be safe, do not allocate more than 35% of your funds in forex/futures...

    However, in order to survive in this game, need to find cash leverage of your 35% by 10X for cushion purpose/buffer margin call only.
  10. A comprehensive article on "Proprietary Trading compared with Retail Trading and Hedge Funds"


    Compare having your own hedge fund with proprietary trading. In a proprietary trading firm you can receive between 60 percent and 99 percent of your trading profits, which is considerably higher than the 20-percent profit allocation in a hedge fund. But with a proprietary trading firm you have much greater risk. You are responsible for 100 percent of your losses in a proprietary trading firm whereas in a hedge fund you are not responsible for any losses.

    Remember, your interests are not fully in line with the firm's interests. The firm earns significant commission income on your forced hyperactive day trading and you only make money when you generate consistent trading gains. You are not taking a job with a salary.
    #10     Oct 14, 2007