Easy - take 1 of your traders & have them take inverse trades as the others, sized up at least 3x larger. Do this without letting the others know. Amazing that anybody could even work at a prop shop averaging into losers. If ever I did that I would fire myself.
No, all new to futures trading. Also 4 of them are in early 20s. Some of them have experience in stocks but not really intraday. One guy does delta hedging in options.
Something is not adding up here. How could this possibly be a wise business venture? Unless you are sitting on a pile of money and are looking for some excitement, I just don't see why you would do this.
The 6th guy is on a demo and shows some promise. 1st day he makes 1300 trading the micros 150 RT. Which got me thinking maybe there is two most likely ways to successful trading: 1 very high frequency: (100+ RT), trading somewhat like a market maker. 2 very low frequency: just 1 or 2 trades a day and maybe no trades. Wait for the rare fat pitch.
Is any new business venture wise? I don't think so. 90% of new businesses go bust. The ones that succeed rapidly iterate their way to success through trail and error. This is something I just wanted to try in an attempt to learn more about markets, trading, psychology.
I forget his name but a legendary trader started off playing blackjack in casinos. He was funded by a mobster. After he won too much money and got banned from the casinos he started his hedge fund. What's his name?
I told you. 20 million in your account. That grants them 4 million each to make mistakes. 10 contracts maximum, let them swing. Futures are no joke, man.
I'm guessing that this guy is just looking for advice for his trading of futures. 100 RT in a day is nothing, and you should not use micros to trade like this. High freq for a day trader is somebody who flips their exposure, is both long and short, and uses cross hedge to act like a market maker. This is called "working an average price" or legging into and out of cross hedged positions. This can help you size into a huge position. Or it means that you trade size in and out during the day. Either strategy could be (easily) hundreds of RT's. Sometimes professional traders don't have a choice. They can't just 'get flat' and go home. Managing risk means trading around a position. This is a really important skill.