From what I have seen and heard, the real obstacle for a guy who wants to do prop futures, but does not embrace the hyper-scalping mentality, you have alot of costs to overcome with alot of these firms...Not getting into specifics, but I have heard of several firms where the desk fee is mid 4 figures per month, plus u have a 50/50 split. Commissions are as low as u can go, but again that's just another incentive to scalp as often as you can... I asked the same questions you did about the whole framework...I mean the guys on the floor, at times, did make markets, they bought bids and sold offers...Obviously, that built in edge doesnt exist with the prop futures... To be honest, its always hard to get any clear answers from anyone about whether guys are making it or not...I seem to always hear the stories like some other guy said "the guy three rows to my left made $50,000 shorting a 50 lot ahead of a report"...And that kind of nonsense doesnt tell us much at all...
With the leverage available in retail futures, do you really need to go to a prop firm? I don't know much about futures prop trading, but if you can't make money with a 1-lot, what makes you'll be better off trading 50? With retail commissions as low as they are now, just do it from home. Prop makes sense for the leverage-challenged stock world, but the leverage is the beauty of futures.
"I mean the guys on the floor, at times, did make markets, they bought bids and sold offers...Obviously, that built in edge doesnt exist with the prop futures..." Yes, and they could see the order flow and new price ect before anyone off the floor could. they had the execution edge the order flow to work with, that no one else in the world could duplicate. ...So unlike the electronic deal. I am not talking prop to get more capital or more leverage. I have capital. If u read my last post, u will see what im looking for. Just a balls to the wall place to trade with with a good cost structure ect. thanks for the good imput guys. any more feedback, given the above, or other usefull knowledge is cool.
I've read your posts and - you can only lose by trading futures via Prop. Better to stay independent. Do well enough and you will be surprised at the doors your $$$ will open. But don't take my word for it. Join a prop firm and learn the hard way. That works too.
I trade prop remote. I do not do ANY scalping (it's a waste of my time). I rather develop swing trading strategies and trade the first and last hour of the day. Watching a bid/ask spread all day long is just too intense for me. I started 4 years ago with swing trading, holding between 5 min (sometimes) to 2 days (usually) to 10 days (sometimes), and i still do swingtrading. I have never been pressured into anything by my firm. A successful swingtrader will generate more than enough trades to satisfy firm owners . I do about 2-3m shares a month. OLiver
upps, sorry! just ignore the post prop futures trading doesn't make sense to me because unlike equities, the futures have enough inherent leverage.
I am an indie futures trader and the research I have done re: prop is this; provided you have your own capital, most of these new arcade style firms charge just about the same fees as it would cost you to work out of your home with a T1 line and the same front end and other software. Hence, it may be better to go and work in their office. But, I do not know anything about the pressures to trade a particular style or scalping. The shop I spoke with in Chicago acknowledged the need to accomodate many former floor traders who would not be willing to change their methods. Hence, the prop firm was willing to make money on the desk space and limited commissions fees. For what's it worth.
I understand your reasons for wanting to work in a professional motivating environment. We all love that kind of inspiration of a team felling. When I get bored and want that comradery I just go to the internet chat rooms where other futures traders hang out. There are a few good ones and the company is great during boring markets. Lots of excellent resources to share as well.