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

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

  1. trend2009

    trend2009

    can you explain in a little more detail? what do you mean cross hedge for future traders?
     
    #31     Sep 29, 2019
  2. trend2009

    trend2009


    then why does someone join in his prop firm? he can find broker with 10-20X leverage on the market and bring him 100% profit.
     
    #32     Sep 29, 2019
  3. interdim

    interdim

    I agree.
     
    #33     Sep 29, 2019
  4. That's their MO ...:cool:
     
    #34     Sep 29, 2019
  5. trend2009

    trend2009

    i wonder why the op let his traders trade up to 20 contracts if they do not prove profitable, unless the op is very rich, in that case, he should have other best vehicle to invest his money.
     
    #35     Sep 29, 2019
  6. DevBru

    DevBru

    What did you expect :banghead::banghead::banghead:
     
    #36     Sep 29, 2019
    RDK91 and tommcginnis like this.
  7. bbpp

    bbpp

    New traders are not expected to make consistent profit.
    You can't develop them. It's like you can't develop any college students to play NBA.
    For traders to make consistent profit, they need both talent and long experiences.
    Select traders who have longer than 10 years experiences, there may be 1/10 of them who can make consistent profit.
     
    #37     Sep 29, 2019
  8. tommcginnis

    tommcginnis

    My guess is that the OP is looking to fuel a story -- either a journalist or a undergraduate looking to flesh out a paper. (Given the date, probably an Incomplete that needs to get off the agenda before the serious current-semester workload ramps up...) Good on 'em, for the imagination.

    But the premises suck: you *funded* a floor, and *now* look for technique? Puh-lease. Oh, and you've got control of your risk management, do you? Yeahhhhh. No.

    So, back to the chalkboard: erase everything and start over.
    Define a set of markets.
    Define a set of maneuvers within/between those markets.
    Define floor-wide limits on holdings: hedge the firm.
    Define traders' limits on holdings -- with blaring alarms for violations.
    Prove that your firm-wide parameters will likely provide efficient returns to engaged capital.

    THEN, GO FIND YOUR TRADERS.

    That's as much as I'm going to say. And there's already too many solid posts on this thread. Go write your own paper.
     
    #38     Sep 29, 2019
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  9. dozu888

    dozu888

    'almost all' perhaps an overstatement?

    staking is different from a 'prop house'.... players staking each other to smooth out the volatility I guess... and still doesn't make sense for a winning player to look for a pure financial backer.... guy wins why would he want to lose part of the prize.

    also prop firms obviously have conflict of interest.... get fresh meat off the street, churn some volume to get commission/order flow... this scenario is not in poker.
     
    #39     Sep 29, 2019
  10. bbpp

    bbpp

    You know little about poker.
     
    #40     Sep 29, 2019