I trade a market neutral strat that profits from theta decay and hedges with futures. It's low risk, low drawdown, but very capital intensive. 5% a month on 50k is only 2500. 5% on 500k is 25k, that's a good monthly number. My 50k is a big enough backstop to start at 10:1 leverage on 500k and start reinvesting profits to compound the returns. Not a hoax, just looking for a good setup. Am already talking to a few funds. Really, prop firms aren't built for this. Ive had better success exploring personal connections to investment funds who are designed to be flexible and have little regulation. I.e. no series licensing required etc. Just pay me my vig every month and don't lockup my capital for longer than 6 months.
So you have nullified your own question with the above post. I reckon'. Hell, we all need capital to be efficient. If I had $500K I'd be swimming in loot. Unfortunately, the world doesn't revolve around dreams and wishes, but upon facts and science. Keep at it though! If you find a backer who will front you $450,000, let me know, I'd like a chat with them!
I don't hetb I don't get it. If i am putting up capital and you have a roadmap of the strategy and risk control then what is the problem? Select an appropriate level of leverage. Thread is still relevant. Som3one might know of an operation that might fit me. Someone suggested tower trading group. I've found there are a number of intereting inbestment funds renting office space from hedge funds in Manhattan. I'm not a lawyer I'm not going to rebuttal your post. My name is brand new trader but I've been trading for 10 years. I would rather use my 50k to trade with someone elses cash than take my own 250 to 500 and deposit it at ANY custodian...
What does that mean? Then ask them. In Manhattan. Go visit the lofts/cubicles/whatever. Hey, that's great man. However, one does not have to be a lawyer to offer a rebuttal, or to rebut. Why did you bring up lawyers? Why not make a username like "10yeartrader"? Or "DecadalTrading"? Why the deceptive nick? And for the record, I'd rather deposit my OWN $500K with a firm and trade my own monies, than to deposit 1/10th of it and have a larch over my head in the form of my backer, looming, every time I have a bad day, and potentially telling me that after I lost 10K, the rest of my initial deposit is forfeit. Lose 10K for them and maybe they call in the rest, and then lose the other 40K? On my own, I lose 10K, I lose just that, and still have $490K to work with. Good luck to you.
This bullshit. You are a troll. Given the current fiscal and monetary environment, depositing 50 to 100k to trade leverage is much smarter than your own 500k in a 3rd parties account. No explanation necessary. I don't understand your argument about losing 10k and having the other 40k confiscated. Not sure what you are referring to. If the 40k is legitimately withheld then you must have lost it or signed it away. Otherwise there is legal recourse and having 40k stolen by some rogues is better than 490k stolen by some rogues. Deceptive nick? I made it 10 yrs ago when it was accurate. Should I change it now bc lames like you post without thinking first ? No. Judgement is limited awareness, and you are not aware. I am not going to get into a quote-filled line by line legalese type rebuttal-bukkake party with you Overnight. I appreciate your feedback and am looking forward to other feedback that can help other traders like me who are trying to reduce their capital exposure to the crooked market but maintain earning potential.
The market is crooked, in your own words. This is what I am talking about. You made your nick 10 years ago, when you were brand-new. You are no longer brand-new. You are inviting silliness I guess. My bad, I apologize to you. You have 10 years under your belt now, and are no longer brand-new. You must then know how to leverage your 50,000 bux by 10X without any input from me, a lowly troll, as you say. You are the master, BrandNewTrader, but do not know how to leverage, do not know the pitfalls of propping, and do not understand the freedom of funding your own account. After 10 years of it. Why not just use your own 50K without leverage? Sorry, I ask too many questions.
I guess it depends on your strategy, BNT, but trading futures contracts (emini or crude) would in and of itself give you all the "leverage" you would need-see previous post-, imo.
T3 if you are in USA ..but that means series 57 But trying to understand once again what you are after? Correct me if I am wrong 1) you have your own 50K, 2) Trading on your own which for futures gives you a HUGHE buying power if day trading ( $500 margin per ES for day trading = 100 contract ) If overnight then say 10 contract ( $5000 margin per contract) But you want to leverage + Instruments built in leverage 3) Your 50K + firms 500K you get to trade $550 K account and THEN leverage it further = 550,000/500 margin = 1100 contract day trading or 110 Contract overnight
No. More like 200k as margin for short options and 300k for hedging in the futures. Holds overnight positions assuming approx 8k ovn margin on emini sp. After 30 days i am up 25k with x% success rate and std dev. This is my strategy. If i use 50k that monthly profit number becomes 2.5k. If i use most of my liquid cash 300 to 400 then i am putting trust in the custodian and broker. After mf global and these new financial regs, bail ins etc i don't trust my 400k in a fucking brokerage account that gets bailed in if 08 repeats. Your puts on IBKR won't mean shit if citibank/jpmorgan bails in your brokerage account. I don't even keep my money in the bank above 125k, rest goes to gold and silver coins. I actually think the collapse is going to accelerate and markets will shut down at some point. No warning. Not that complicated. I could trade equities and put up 100k at a prop for 20x leverage and make a similar living, but equities options carry assignment risk and equity props are usually undercapitalized which leads to all sorts of other compromises.
ok so multi day duration trading with short option and hedge with Futures as required so the 500K you will get is it Notional or actual? in other words total max exposure of 500K? or much more than that ? ...Just as a side note reg broker failure.... so what you are saying is if you use your own 500K and broker goes down like MFG your entire 500K is likely to be gone where as if you join a prop then if the broker goes down you only loose your share = 50K .. but join a prop is there not another flip side that is if the Prop goes down due to other traders your 50K can vanish also!