If you had a prop firm, how would you develop traders?

Discussion in 'Prop Firms' started by newwer, Sep 28, 2019.

  1. comagnum


    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.
    Last edited: Sep 28, 2019
    #11     Sep 28, 2019
    tommcginnis likes this.
  2. newwer


    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.
    #12     Sep 28, 2019
  3. fan27


    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.
    #13     Sep 28, 2019
  4. newwer


    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.
    #14     Sep 28, 2019
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  5. I would train them to churn and burn so I make money on their commissions over and over again.
    #15     Sep 28, 2019
    viruscore1 and clockwork71 like this.
  6. newwer


    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.
    #16     Sep 28, 2019
  7. newwer


    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?
    #17     Sep 28, 2019
  8. Overnight


    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.
    #18     Sep 28, 2019
  9. Real Money

    Real Money

    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.
    #19     Sep 28, 2019
  10. fan27


    Dude...you are not funding five traders. This thread is BS.
    #20     Sep 28, 2019
    MattZ and tommcginnis like this.