Thanks, the answers you provided were great. There was a follow up question by a trader regarding the 5k profit cushion: If the trader makes realized profits of 5k for the cushion, it was posted that PTP would NOT send the trader back to combine until the balance was negative (below the starting balance), however, the trader's share of this 5k is 3k, and the investor's share is 2k (on the 60/40 split). So the trader can take draws for BOTH their share AND the investor's share PLUS 2x max daily loss risk in order to be sent back to the combine, is that correct?
A trader can only start taking withdraws once they have generated the profit cushion/buffer. Their withdraw must keep the cushion/buffer in tact. If a trader says he is completely done trading with PTP then the cushion/buffer would be split between him and PTP at the 60/40 split (60% to the trader). The reasoning here is we want traders to build their account up and maintain that balance so they do not run the risk of going back to the Combine. Having the cushion/buffer built and making sure the withdraws the traders request keeps this cushion in place keeps them confident and in a good position so that if they do start to struggle for whatever reason they can ride that struggle out and not run the risk of going back to the Combine. mp
We are working with Eurex to get data feed. Exchanges do not like to give data feed out to sim because there is no revenue for them. We make the pitch that if they give out more than a 2 week SIM feed or one month.. They will allow traders to develop and working what they need to work on, so that when they get back to the live market they stay live longer or permanent. It is a win win for both parties in this case. We are working on it. The CME group understood this right away and was able to put a program together for us so that went over well. Eurex and ICE are next. All in due time I suppose. mp
Yes, that was explained in other posts. Perhaps I did not post the question correctly. What the trader wanted to know was this: On the 50k account the total max risk is 2k (or twice the 1k daily max risk). If the balance on the account is 55k, the trader in theory can suffer a 7k drawdown (5k of profit that has been built up, PLUS the 2k max risk below the starting 50k balance). PTP will not allow for a withdrawals until the trader has built up 5k, but if the trader quits, PTP sends 3k to the trader, and keeps their cut of 2k (60/40 split). So in essence, if the trader continues to trade, PTP is allowing the investor to lose their own 2k PLUS another 2k in the red before sending the trader back to the combine, for a total of investor money of 4k (and the trader is losing 3k of their own profits). In the above scenario, the max drawdown is 7k before being sent back to sim. In other words, the max risk of 1k/day and 2x max risk would not send them back to the combine, correct?
Let's take this to an even greater extreme. I know the answer but it will crystallize this point better. Say a trader has their equity at 90k on a 50k account so 40k in open profits. He has not taken a single check yet. Will you let the trader give back all 40k of open p&l and then another 2k to bring their equity to 48k before sending them back to the combine? I believe the answer to this is yes.
Let me guess. The girl's name was Magda. Hehehe.... Notorious firm was Worldco in NYC. They did huge volume. Something like 10% or was it 20% of volume on NYSE. That's what the new trader welcome packet said. Was a fun place. Compared to Worldco, other equity prop firms we're like hole in the wall fly by night operation. Seriously, no pay, no way. I will just walk out if I don't get paid. Some asshole just took my trading desk at Avatar and that pissed me off and I just quit and walked. An ass with no class. The best thing about Avatar was their bathroom. Fucking new and fucking nice. Hehehe... Clean and new bathroom is top priority. A deal breaker for me. I hate those firms that require a bathroom key. Oh and you have to share the damn key to boot. Who knows where that key has been and what's on it. Lol. What a joke. Is TST a scam or what? Could somebody from Goldman shed some light on this? If you lose your shirt at TopStepTrader, you could call yourself a TopLessTrader.....
Salary buys food, clothes, and shelter so you don't show up to work like a homeless person. That's all. I don't need a salary but if I don't get paid one, I gotta create a salary. Allocate money for food, clothing, shelter, etc. Pain in the ass. Another thing to think about. I am a trader. My job is to trade. I am not supposed to figure out a salary. I think it's a distraction when you don't get a salary. Could make people scared.
This is the funniest thing I have ever read in regards to prop trading. I have been thinking this all along but never said b/c I didn't want to offend The Don. I mean he might have soft skin. Plus, everyone on ET seems to have a favorable opinion about him.
Probably b/c the $200 is better spent at a streeep club. Hehe. I will bet $200 that a random guy/gal won't pass the Combine.