That's what I thought long time ago. But now, IMO, fundamentally: Business is business. Trading is trading. Academics is academics. Academics isn't business nor trading. Academics is school.
I trade fully backed at a firm with a "golden handcuffs" provision in the contract like you've described. It's frustrating as an individual because, obviously, I'd like my earnings sooner rather than later. Yet, at the same time I realize it's a safeguard against some other trader going all in on a stupid trade and potentially damaging the firm. The guys with enough buying power at my firm to trade that kind of size all also have quite a bit of money waiting as a deferred payout. So essentially, the perfect firm would have have golden handcuffs for everybody - except me.
I'm curious, do you care to share your style of trading. As you know there was some debate on this thread about how guys trade that get fully backed. You don't have to go into details.
That sounds pretty much like the Steve Schonfeld model, and some of his sub's. Perfectly understandable, but frustrating as well. I have some "transferee's" that had to wait for $$, not the "bad kind" of waiting, Schonfeld is a stand up firm, but just their contractual agreements. Don
I think that one very important aspect of "the perfect prop firm" is that it runs a model based on trading floors, not remote trading. I believe there is a lot of value from the atmosphere you get from the trading floor, which many people underestimate. I also want to point out that i find it very amusing how many folks describe their perfect firm as one that pays out 100%, & charges nothing on the fees... I mean the firm has to make money too! I think that firms which take a cut of trader's profits at least have their interests lined up with that of the traders. Great thread Maverick (actually read through the whole 41 pages of it...)
Well Don, to blow off the steam, you need women.....and there's the impact on the marriage. I've asked prop firms point blank: What time doe the female masseuse arrive ? They give me this blank look..... Wow, it just makes sense with all of the pressure of trading.
Currently, spreading and some special situation stuff. I'll still enter some directional trades, but usually only if I have a clear edge in execution, such that I'm pretty much guaranteed "free" money or a scratch. But as far as going long XYZ @ 100.00 at the market because of an indicator or gut feeling - very rarely. That said, I do know some guys that are successful directionally. However, they are usually looking at relatively illiquid instruments in which they've identified another market participant doing something unusual. They essentially are trading 1 vs 1 against someone else - and have a decade of trading experience behind them. I would say it would be extremely difficult for a new trader to be successful strictly trading directionally.
Not to derail Mav's thread - but can you also share some of the general story of how you made your start in the business?