Proprietary Trading Firms - A Different Business Model

Discussion in 'Prop Firms' started by expiated, Nov 10, 2022.

  1. expiated

    expiated

    I found myself in a situation where I was stuck at the public library with a lot of time on my hands. So, I went to the 332.63-332.64 section to see if I might spot a publication that looked like it might be even a tiny bit interesting to someone who trades in the manner I use, just to pass the time.

    I settled on Start Day Trading Now: A Quick and Easy Introduction to Making Money—While Managing Your Risk, by Michael Sincere.

    As I skimmed through the pages, my main thought was that the book's subtitles might serve as useful reminders to anyone teaching individuals new to trading what information s/he might take for granted, and should therefore be careful not to overlook when planning instruction.

    Accordingly, I am listing them below as a personal reference...
    • Emotions are the biggest obstacle to your success. (Personally, I think ignorance is right up there as well.)
    • Choosing a Brokerage Firm (and saving on commissions)
    • The mechanics of signing up
    • What is a pattern day trader?
    • Full-time vs. Part-time trader
    • Understanding Margin
    • Taxes for Day Traders
    • Setting Up (Equipping) a Home Office
    • Selecting a style: swing, position or scalping
    • Basic Charts: line, bar, candlestick
    • Understanding Support and Resistance
    • Volume
    • Trend
    • Time Periods
    • Interpreting Patterns
      • Double Bottom
      • Double Top
      • Head and Shoulders
      • Common Gaps
      • Breakaway Gaps
      • Runaway/Continuation/Measuring Gap
      • Exhaustion Gap
      • Triangles (Ascending/Descending)
      • Symmetrical Triangles
      • Pennants
      • Flags
      • The Doji
      • Dark Cloud Cover
      • Hammer
      • Spinning Top
    • Using Technical Indicators
    • The mechanics of making a trade
    • Rules to Trade By
      • Don't listen to tips (think for yourself)
      • Don't borrow money to fund an account
      • Manage money carefully
      • The market is always right
      • Enter the market with realistic expectations and book profits when goals are reached
      • Create a trading plan and follow the rules
      • Use stop losses and don't risk more than a predetermined sum on any one trade
      • Avoid trading during the first 15 minutes after the market opens
      • Learn to trade without emotion
      • Use limit orders to get a more competitive price
      • Consider scaling into a trade with fewer shares
      • Practice before trading real money
      • Never take your eye off an active trade
      • Don't fall in love with a stock
      • Study the overall market and individual sectors for clues
      • Use technical indicators
      • Be willing to accept some losses
      • Be patient and WAIT for profitable trading opportunities
      • Keep a journal of all trades
      • Turn lemons into lemonade (learn from your mistakes)
    • High Frequency Trading
    • Advice from Pros
    • Trading Resources
     
    #121     May 6, 2023
  2. expiated

    expiated

    Fixing the Flaws in America's Health Care System

    According to John Abramson, who teaches health care policy at Harvard Medical School, because U.S. politicians accept large contributions from drug companies, the only way our broken health care will undergo meaningful reform is if the American public comes together to form a coalition that demands action. However, I doubt this is ever going to happen spontaneously (as if by magic), and the irony of this is, if Abramson is correct, the solutions to the problem are already well-known:
    1. We need to establish an independent, transparent peer review process to ensure the evidence base of medicine is accurate and complete.
    2. We should be conducting health care assessments that determine which drugs and devices are the most effective.
    3. And finally, we have to control the price of drugs.
    This is where I see well-funded entities like the hypothetical proprietary trading firm I envision coming into play. Contributors to this forum such as GutterSlut are impressed by criminals who manage to outsmart their victims by using their minds to trick them into handing over large sums of money (as opposed to holding up a liquor store for peanuts) and feels like they somehow deserve their spoils, even finding their behavior admirable.

    I, on the other hand, am personally inspired by people like Scott Harrison, who forsook "the good life" to found a non-profit called charity: water, and who has since mobilized over one million donors around the world to fund over 120,000 water projects in 29 countries to provide clean drinking water to more than 16.8 million people!

    Accordingly, if I ever AM in control over an unbelievable store of capital, it's my intention to direct a portion of it to funding efforts where the answers to problems are already known, yet for whatever reasons, no one seems inclined to take the necessary steps to actually put them in motion—such as bankrolling the Independent Medical Research Review Corps of America (IMRRCA) to carry out at least two, if not all three of the tasks listed above.
     
    #122     May 25, 2023
  3. expiated

    expiated

     
    #123     May 26, 2023
  4. expiated

    expiated

    Generated by cohesive.so:

    Non-Disclosure Agreement (NDA)

    Between Our Proprietary Trading Firm and [enter name here]


    Non-Disclosure Agreement (the "Agreement") is made effective as of the date of signature below, by and between Our Proprietary Trading Firm (the "Disclosing Party") and John/Jane Doe (the "Receiving Party").

    Purpose of the Agreement
    The purpose of this Agreement is to protect the confidentiality of certain proprietary and confidential information that may be disclosed by the Disclosing Party to the Receiving Party during the course of their relationship.

    Definition of Confidential Information
    Confidential Information includes, but is not limited to, any information relating to the Disclosing Party's business, operations, products, methods, customers, financial information, or any other information that is designated as confidential or proprietary by the Disclosing Party.

    Obligations of the Receiving Party
    The Receiving Party agrees to hold all Confidential Information in strict confidence and not to disclose it to any third party unless authorized in writing by the Disclosing Party. The Receiving Party will only use the Confidential Information for the purpose stated above and will disclose the Confidential Information only to employees and representatives who have a need to know and who have been advised of the confidential nature of the information.

    Duration of Agreement
    This Agreement will remain in effect until the Disclosing Party releases the Receiving Party from its obligations under this Agreement in writing.

    Consequences of Breach
    The Receiving Party agrees that any unauthorized disclosure or use of the Confidential Information will cause irreparable harm to the Disclosing Party and that the Disclosing Party will be entitled to seek injunctive relief to prevent such disclosure or use, as well as any other remedies available at law or equity.

    Governing Law
    This Agreement will be governed by and construed in accordance with the laws of the jurisdiction the agreement is entered into.

    Exclusions
    This Agreement does not apply to any information that is publicly available or becomes publicly available through no fault of the Receiving Party. Neither does it apply to any information that is lawfully obtained from a third party not under an obligation of confidentiality.

    Permitted Disclosures
    The Receiving Party may disclose Confidential Information in response to a valid order of a court or other governmental body, as otherwise required by law or as necessary to establish the rights of either party under this Agreement. The Receiving Party may make such disclosures without prior notice to the Disclosing Party.

    Injunctive Relief
    The Disclosing Party shall have the right to obtain an injunction to prevent the breach, threatened breach, or continuing breach of this Agreement, without the necessity of proving actual damages or posting bond or other security.

    Return or Destruction of Information
    Upon termination of this Agreement, or at the request of the Disclosing Party, the Receiving Party shall promptly destroy or return all Confidential Information in its possession, custody, or control.

    Governing Jurisdiction
    Any dispute arising under or in connection with this Agreement shall be resolved in the jurisdiction agreed upon by both parties.

    Severability
    If any provision of this Agreement is found to be invalid or unenforceable, that provision shall be deemed amended to achieve as nearly as possible the same economic effect as the original provision, and the remainder of this Agreement shall remain in full force and effect.

    Assignment
    This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Neither party may assign this Agreement or any rights or obligations hereunder without the prior written consent of the other party.

    Notice
    All notices required or permitted under this Agreement shall be in writing and shall be deemed given when personally delivered, or three (3) days after being sent by registered or certified mail, postage prepaid, return receipt requested, or when sent by email, fax or other electronic means of communication.
     
    #124     Jun 2, 2023
  5. alistera

    alistera

    That truly has to be the most pathetic NDA I've ever seen :D
     
    #125     Jun 3, 2023
  6. expiated

    expiated

    PLEASE NOTE: The following is NOT a sales pitch! I used cohesive.so to generate a blog about NPP (a piece of writing that was very redundant) which did not sound anything at all like how I personally trade, and I have now edited its output so that the article DOES describe my system.

    Again, Numerical Price Prediction is not for sale and is not available to anyone but its creator. The following sounds like a sales pitch because that's the style cohesive.so used. In actuality, this was merely an exercise in preparation for if and when I ever DO publicize the system at some time in the far distant future...


    The Numerical Price Prediction (NPP) Forex Day Trading System:
    A Game-Changer in the Forex Market

    Introduction

    If you're tired of losing money day trading foreign currency pairs due to inaccurate price predictions, you're not alone! The world of trading can be a real headache, especially with all the number crunching and market analysis required to make informed trades. But, have no fear… Numerical Price Prediction (NPP) is here to save the day!

    In a nutshell, NPP is a system that analyzes market trends and forecasts price movements in real-time using a methodology similar to that used by meteorologists to predict the weather. And why is this a game-changer? Well for one thing, it takes the guesswork out of trading. No more relying on gut instincts or hours of poring over charts and data. NPP does the heavy lifting for you. Plus, with its unprecedented accuracy and speed, NPP gives even seasoned traders an edge in the market. You can say goodbye to sleepless nights and endless frustration by saying hello to NPP!

    Understanding the NPP Trading System


    The key to NPP's effectiveness is that the system knows when and where to anticipate the future direction of exchange rates—a necessary skill in Forex trading given that few people can predict the market often and well enough to be profitable.

    This is where the NPP system is strongest. Using crystal-clear graphics and leading indicators, it analyzes real-time data to generate projections of where currency prices are most likely to go so that traders can make informed trading decisions with confidence.

    But the benefits of using NPP don't end there. Thanks to the simplicity and strength of its user-friendly visual layouts and design, you don't need to be a math whiz to understand the data. And because it saves time by virtually making decisions for you, you're no longer going to have to spend hours poring over technical or fundamental material.

    Features of the NPP Trading System


    The NPP trading system boasts of unique, innovative features, including temporally-based indicators that enable the system to reflect the principles of flight dynamics—which use the laws of physics to explain how forces act on vessels to govern their performance, stability and control to ultimately determine their velocity and attitude with respect to time.

    So, in the same way pilots know that a Boeing 787 Dreamliner will lift off the ground by angling upward at two to three degrees per second with a maximum angle of 10 to 15 degrees, retail traders can know the parameters dictating whether an asset is rising or falling from the perspective of a day, swing, or position trader.

    This means that traders using NPP can make purchasing decisions based on one-of-a-kind information, leading to an edge over other traders who rely on more standard or traditional data.

    Another key feature of NPP is its ability to produce forecast models that accurately predict price movements. This takes the guesswork out of trading by identifying patterns which indicate with almost 100% certainty what's going to happen next in the markets.

    Benefits of using the NPP Trading System


    Let's face it… Forex trading can be a gamble—but not so much when using NPP. No one wants to lose money, and by utilizing the NPP trading system, traders can make informed decisions that result in reduced risk and increased profits. They can say goodbye to gambling on trades they're not sure about and say hello to informed decisions that result in their desired outcomes. NPP promises improved precision, accuracy, and profitability, making the system a powerful tool for enhancing one's trading experience and increasing profitability.

    So, what are you waiting for? Start reaping the benefits of the NPP trading system today and say goodbye to your Forex trading woes!
     
    Last edited: Jun 3, 2023
    #126     Jun 3, 2023
  7. How is it going OP, established your prop shop yet?
     
    #127     Jul 29, 2023
  8. expiated

    expiated

    My prop shop is years away (that is, if it ever materializes at all). Right now, I am two weeks into the challenge I registered for with Tradiac.com, which says it "is a technology-driven funded trader program that allows remote traders to manage capital allocated by a London-based fund specializing in alternative investments."

    At the rate I'm going, it will take me another 18 weeks to generate the 10% ROI that will qualify me for full funding. However, that's assuming I haven't learned how to improve my efficiency these first two weeks trading the new model I've cultivated specifically for this particular "soil" (if you will) and that I'm not gong to increase my stake per trade as I see my efforts yielding consisting results, neither of which is true. I therefore hope to qualify well before the end of four or five months, but the proof will be in the pudding.
     
    #128     Jul 30, 2023
  9. expiated

    expiated

    Disclaimer: This is NOT real!

    The FictionalPropFirm Story

    Starting in 2017, Fred Duckworth, a self-described maverick when it comes to most "tried-but-not-true" ways of doing things, began refining a system of Forex trading based on the belief that candlestick chart indicators can be configured to reflect flight dynamics; which use the laws of physics to explain how forces act on vessels to govern their performance, stability and control to ultimately determine their velocity and attitude with respect to time—and this notion of giving market measures temporal characteristics was key to the success of Fred's approach.

    Born out of his subsequent experiencewith unprecedented results was the desire to democratize access to wealth building practices by building a platform loaded with visual aids designed to obliterate the complexity of market analysis and deliver simple, straightforward instructions on when to buy or sell financial instruments, and when to exit positions with significant gains.

    So in 20??, FictionalPropFirm was launched to establish this revolutionary platform. Our motto: "More than enough to go around" drives us to make profitable trading a reality for all investors and to minimize any risk associated with participating in the financial markets. Learn how you too can generate significant income by making use our platform, education, ideas and reports.

    We believe that there are always opportunities in the market and that success in trading is available to anyone who has the right "connections." At FictionalPropFirm, we serve as such a connection by empowering individuals to share in the revenue offered by brokers and exchanges around the world, and we invite you to join us.
     
    #129     Nov 5, 2023
  10. expiated

    expiated

    Understanding the Chartered Market Technician Designation

    The CMT certifies that its holders possess a comprehensive body of knowledge of technical skills to be able to conduct research, author research reports, recommend trades and investment programs from a wide variety of financial instruments and markets, and even trade their own accounts.

    The CMT encompasses more than the ability to read a chart. Preparation for the CMT Level I exam takes in subject matter such as: the basic principles of technical analysis; Dow Theory; breakouts, stops and retracements; moving averages; bar chart patterns; volume analysis; confirmation; point-and-figure charting; wave principle; and Elliot Wave Theory, among other areas.

    From there, with preparation for the CMT Level II exam, candidates begin to concentrate more on theory and analysis. This includes chart development and analysis; volatility measures; behavioral finance; statistical applications for technical analysts; technical methods and market selection; and designing and testing technical trading systems.

    By the time candidates are preparing for CMT Level III, they are learning to integrate what've they learned from several knowledge areas. This includes risk management; asset relationships; portfolio management; behavioral finance; volatility analysis; and classical methods of technical analysis.

    https://www.investopedia.com/articl...ends 80,further their comprehension and study.
     
    #130     Nov 12, 2023