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

can you explain in a little more detail? what do you mean cross hedge for future traders?

 

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.

 

I agree.

 

That's their MO ...

 

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.

 

What did you expect

 

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.

 

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.

 

'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.

 

You know little about poker.