My Experience at a Prop Firm

Discussion in 'Prop Firms' started by pineman, May 10, 2007.

  1. (I typed a pretty long answer, and for some reason, it didn't show up, but' regardless, let me try again).

    Over the years we have adapted to where the $$profit potential was, as we saw it (first options, then futures, then both, then back to equities). We "lead by example" - with all of our equities strategies.

    That being said, we have at least doubled the percentage of Nasdaq trading we do over the last couple of years.

    And, our traders may trade options and futures...all we ask is that they chat with us a bit about their plans....pretty fair don't you think?

    We have become "kinder and gentler" to other markets, primarily due to the "marketing" from the exchanges pushing their products. We find, most of the time, that the options guys are using the same or similar strategies that worked when Bob and I were on the options floors decades ago, but a few of these techniques may still work.

    Overall, we do our best to protect our traders from themselves, and point them (by example) to what is working currently.

    "Adapt or Die" as they say.

    Don
     
    #101     May 20, 2007
  2. EXACTLY. Why ? Much fewer traders = lower profitability, closer to the "breakeven" point. It's ALL ABOUT THE MONEY. Recent posts on this forum looking for prop firms supporting futures and automated systems just says it all....there's few out there....very few. Again, the reason ? Those contracts and that type of trading are not that profitable...for the props...but who's making all of the money ? THE EXCHANGES ! See CME and CBOT stock price levels for proof.
    Add to this, a really stupid CFTC who is actually considering to allow these exchanges to merge and become even LESS competitive, and what do you have ?: Even less incentive for Props to go futures.
    Bottomline: Despite the stock market at record highs, these are bad, bad times for the small trader.
     
    #102     May 20, 2007
  3. GGSAE

    GGSAE

    Hydro I've always respected your opinions, but there's one thing you have to realize and that is there are many Bright traders doing very well trading equities. If i've got an edge trading pairs, why would I bother looking into another trading instrument?
     
    #103     May 20, 2007
  4. Midas

    Midas

    I started my trading career at ETG in 2000 the last year they gave a salary (not a draw as previously stated; a salary plus 30% net profits) when you were ready you switched to a membership type deal.

    I did it because I was in my 20's without a significant bank roll.


    They paid for the salary with high commissions. A risk on their part as no capital contribution was required.

    Most left after they made it, so they developed a non compete agreement and used scare tactics to keep you from going to another firm.

    Kantor: was a savvy trader and businessman, everyone that has met him has alot of respect for him.

    Mester: and his pit bull lawyer (who threatened this site when negative statements were posted) were more interested in fleecing their traders. Mester ended up as COO of a REFCO operation and what was left of the ETG business was sold to Schonfeld.

    ETG was just another prop firm nothing more.......... and the coat and tie business was done away with in 2000.
     
    #104     May 21, 2007
  5. 2ez

    2ez

    Help me understand the age bias with Props not hiring those age 30 and over. I am sure this does not apply to all, but I am hearing there are a few that may opt not to consider someone older. I fall into this category and I am wondering if I should band with the rest of my “older” commrades and start a 30+ group :D

    But of course opening to all later....…….I don’t believe in limiting myself or any entity I am responsible for.
     
    #105     May 21, 2007
  6. Midas

    Midas

    Maverick,

    With all due respect, Worldco's traders were probably no better (or worse) than any of the other big equity prop. firms in that period.

    When the dust settled at the end of the day Bright came out on top..............
     
    #106     May 21, 2007
  7. Maverick74

    Maverick74

    Not true. There was nothing inherent in Worldco that made them a better firm. The difference was Walter would pay anything, and I mean anything, to lure the best traders away from other top firms. No one could outbid Walter. THAT is what made Worldco better.
     
    #107     May 21, 2007

  8. appears to be very deceitful on the firms part. would this be velez capital, per chance?

    surf
     
    #108     May 21, 2007
  9. I have to disagree. One word:

    "Schonfeld" (Their Reuter platform sucked though... just good structure as a whole)

    I have to disagree with this also. I knew a lot of Bright traders moving to Worldco. Everyone hated the slow and often crashing Bright's platform based on the old school REDI and the fees.

    I've been around when Bright Trading used to be ghetto out of the prop. firms. 1/4 of the top Andover (now-Assent) traders started off at Bright. We had a good platform called Hammer along with Realtick...

    In terms of rates... it was so discretionary that it wasn't funny...

    (Good trader = low. Newbie = high. That never changes and hasn't. So stop complaining...

    Trader's value is to make money by trading.

    If you can't do it, you're a piece of shit. Would you pay $200 a dish for a chef straight out of culinary school? NO )

    Now... has the prop. industry changed? NO. We just have a lot more whiners in ET... that's all.

    PS. We all miss rtharp. RIP.
     
    #109     May 21, 2007
  10. Maverick74

    Maverick74

    Yes, I agree Schonfeld had some great traders and we got some of them as well. But Schonfeld was not a true daytrading firm. They held positions overnight and had a different style of trading. They were also almost pure nasdaq, we were pure NYSE. But they certainly were a behemoth and I have nothing but respect for Schonfeld.
     
    #110     May 21, 2007