agree , for the type of trading your firm does with the overnights having more equity in the account is beneficial to everyone If your a scalper for pennies , then you can go to any prop firm for your needs
the majority of prop firms only pay out 1 time per month they lock up your capital & make you wait for your profits trading used to be easy , now your fighting for scraps to stay alive _____________________________________ quote from hitnrun Yet another reason why trading volume is down and will never return.
Don, I've heard you write about the "opens", what I'm unclear on is how does someone manage 100+ stocks at once? Does the REDI software allow for multiple orders on the same stock before the open? I can't recall when I saw your software if it had such a feature (it's been awhile). For example, "buy 100 shares of XYZ at 25", if filled then "sell 100 shares of XYZ at 25.50" and "stop 100 shares of XYZ at 24.75". Sort of like a contingent order coupled with a "one cancels the other" order. I've seen this on Fidelity, however I'm unaware if any other prop firm uses software to handle these types of orders.
Opening Orders Only --- what a great way for an arcade to start its day. Its genius. Within minutes, traders have hundreds of orders executed firmwide. Its a great business model to get the bills paid via commissions within the first 5 minutes of the day. The rest of the day is gravy.
You probably already know this, but it's not Don's rule. Any registered prop firm has to abide by this rule per the SEC [I think it's the SEC].
I can see how commissions would rack up fast, however my understanding is the strategy calls for placing lots of orders, of which many do not get filled. Don implied that they ARE getting filled, with "100 to 300 at a time for a trader", so then the question is, how to manage the orders without some sort of automation? I asked Don about this, still waiting for a response. I'm not asking Don to reveal what strategy his traders use to determine the entry/exit price, I'm just asking how the execution and management of the strategy works in relation to the platform. Sterling with API probably allows for this, not sure about REDI.
Regarding the one year "lock up" rule, it's SEC Rule 15c3-1, lots of info on the web regarding net capital requirements for brokers.
After reading this I am glad I trade futures and not equities. I always wondered how many of you trading at a prop shop are on salary + allowed at least 50/50 split?
Fully automated, and we have new "stuff" to help - doing a presentation at our retreat in a couple of weeks. Our very top people do this, and, of course they work very hard at it, and I'm not going to disclose their specifics, but I can say they enter on the open, are are generally done by 10AM NYSE time. Don