How is a person supposed to answer that? Too many variables imo. A person with 20k may come in with a system, one may have some experience, one may have 30 years experience, and one could be someone off the streets wanting to learn to trade for a living. Doing a simple average of the success/fail wouldn't work imo due to the variables. And a casion, I don't think so. You're barking up the wrong tree.
Being that Bright teaches a system, an edge if you will-- it's a very legitimate question. Other than the leverage, learning how to trade is another smart reason to join a prop firm such as bright.
I'm asking a very simple question. What is the success rate of you traders who depost $20,000 to trade at your casino skimming operation? Listen, it's not secret information. $3,000 is not undercapitalzed if leverge is 10:1 for stocks $30,000 buying power. most prop firms only give traders $10,000 intra-day buying power. Either you don't want to disclose the failure rate, it's fine with me.
A 3,000 account is very under capitalized. I've given Don shit for accepting 20k accounts. But to answer your question, it's my belief that the failure rates are pretty consistent across all firms which is usually about 80% to 90%. The word failure can be a very subjective term so I'll use Bret Steenbarger's definition. His definition of a "successful trader" is one who consistently makes enough money that after taxes can pay all his or her monthly expenses. Meaning, they are least breakeven at the end of year in terms of net worth. The housewife who trades a little on the side who makes a marginal profit is not successful.
expenses are relative--- if i live in my parents basement and make enough coin to party and have a nice car, am I succesful? Or am I only succesful if I own a house like VN on 13 acres in CT? surf
$30,000 intra-day buying power is what prop firms who don't require any deposit or any fees give to traders. some traders only get $10,000 intra-day buying power. the guys who get $40,000 intra-day buying power are top traders which is only $5,000 capital if you get 10:1 intra-day leverage. that is the difference between a pro and amatuer. HFT machines are masters at managing leverage and daytrading. Goldman Sachs daytrading prop desk is 100% fully automated.
Surf, at the end of the day you can't have a negative burn rate. It doesn't work. For example, if my name is Smicter Smeiderhoffer and I live in CT and my overhead every month to live there is 100k a month and I make let's say 1 million a year and after taxes I'm left with 500k in income, then with that neg burn rate, we can calculate when I'll be insolvent. And when that happens, I'll be broke and I won't be able to trade anymore. By definition being broke and not able to support myself would constitute failure on some categorical level.
I doubt anyone makes a living with 30k in buying power. Not going to happen. And yeah, I've been around the block a few hundred times.