Hello all. Long time reader first time poster here. I have come across a few threads where the OP has some interesting job opportunity and presents it to the elite trader community for some advice. Well that is what I am doing. Right now I am prop trader, I put up a little money and got some buying power. I have been in this situation for the last 3 years. Currently I have 3 fully automated programs that have performed extremely well over the last 18 months or so (3-4k a day). With my current deal I keep 90% of my profits which is nice. I have been approached and have been presented a interesting job opportunity. It is at a prop firm that pays a salary (200K) and pays out 50% of profits. Now I know that sounds shitty but this situation offers more then just the immediate financial rewards. I will be provided with the infrastructure as well as the access to great research, programmers etc. I feel that going this route the financially rewards down the road will be great, but the only thing is now I will have to answer to someone. So what do you guys think, I know the decision lies with me, but I would like to hear from anyone who has been in this situation and if it did or didn't work for them.
Career progression is often accompanied by engaging in "conversations of possibilities". You have had such a conversation and now an opportunity has been presented to you. I don't see your downside in taking it. Yes you will have to answer to someone. However, given the right environment and the right people, perhaps one day you will progress to be that someone. It sounds like a bigger game than the one you are playing now. It is difficult to know right now which situation would be better if compared dollar for dollar. But that is a foolish way to look at long term opportunity anyway. You did not mention your age or stage in life. My answer might be different if you were in your 60's than it would if you were in your 20's, 30's or 40's. Your downside is that you don't like it and you have to go back to a prop firm. I see no risk here. Am I missing something? When we get older we will not look back on the things we've done, but the things we did not do. Good luck with your decision.
Thank you for the reply. I am only a young buck (will be 28 in 17 days), and I don't have any responsibilities other than myself. The other thing I failed to mention in my post is that the opportunity is going to require me to move almost 1200 miles away from my current home to NYC. The downside is very limited, and the fact that I will be able to scale up very quickly is what is really attracting me to this. The thing is for most of us, we get into this trading game for the freedom. The freedom to pick up whenever and go somewhere for a month if we want to, and trade overseas. That is something that I will have to give up. I don't want to look back when I am in my 40's and think "damn I gave up my freedom while I was single and young to make a couple bucks" but I also don't want to look back and think I missed out on a great opportunity. Thank you, you have given me something to think about. Is there anyone else out there, who has made a change from trading on your own to trading at a real prop firm.
Very interesting that you bring that up. I have thought about it, and have also asked them. I was told that all IP will belong to me, and I can do what I please with it. Won't this be a risk no matter where I go, or stay? The models are completely blackbox and I would be doing the coding. Would it be easy for them to "reverse engineer" my system by viewing my trades? These are all things that keep going through my mind. Once again, thanks for replying your opinion is much appreciated.
I will have to concur with Red Ink. The day you put a price on your freedom is when you become a slave. You already are making enough money. Don't let greed overcome you.
I know you say look to the future but... now you have $803,250 per year via: $3,500 X 255 (trading days) = $892,500 - $89,250 (10%) = $803,250 Whereas with them you will have $646,250 per year via: $3,500 X 255 (trading days) = $892,500 - $446,250 (50%) + $200,000 You simply ask yourself is what they offer in "information" and "research" worth an initial 27.5% pay cut. In my opinion, if you can reasonably consider that change, then as posted before, you make enough. Live a little, work on your systems some more gradually on your own. Clearly you have and edge, stick with it and further develop it on your own. I'm a noob however, so ignore my advice, please. Heck, my math might be wrong too.
I have nothing to say about your offer, but why are you worried about this nonsense if you are making 4k a day?
Rock, I realize that I will be taking a pay cut if I put up the same numbers as I do now, but with that in mind I will access to a lot more capital and thus will be able to start off trading larger size then I do now. So I am not sure what kind of P/L I will be able to put up at that point and that is the allure of it all. I guess greed is playing a part in this but this is a money orientated business and we are always trying to make more. This is how we keep score. All these points that you guys bring are exactly was is hindering me from making a decision. But there has to be someone out there, that has made the switch at some point in their career that could relate their experience and if they have any.
I would stay put and grow. Don't let the salary fool you, you will be gone if the systems stop performing. Milk it while its still good. Good luck to you either way. I would consider moving only if you're as certain as one can be that your strategies are scalable to at least 5X of what you're trading now.