Will a prop firm steal my strategies? Recommendations for low cost brokers?

Discussion in 'Prop Firms' started by Jefferey, Jul 17, 2010.

  1. Jefferey


    I have a strategy that I've traded successfully for several years (I was previously with a large bank). The problem is that it is very high frequency and the commission eat away a lot of the profits now that I am paying retail commissions.

    I'm considering going with one of the Prop Firms that offers $0.30/1000 shares which would be a huge savings from what I'm paying now. My concern is that it will be fairly easy to reverse engineer my strategy if they want to, once they see the profits it is generating.

    Perhaps I'm paranoid, but regardless I've been searching for a larger broker that offers 'trade one symbol all day for a flat fee' but still allows me to plug in automated trading via Multicharts or Tradestation or that offers very low commissions for high frequency traders. I currently trade with IB and like the system and commission are reasonable for retail, but very high when doing 50 or more round trips a day.

    Thanks in advance!
  2. punter


    yes. its not that easy to reverse engineer anything. but it is RIDICULOUSLY easy to just piggy back in realtime. its even easier to piggy front your crap as well. i'm not just pulling that out of my ass either. its that easy.

    now i'm not saying a firm would do that to you. but its that easy. now i'm not going to explain how or why. i'm not paranoid. its not like i have some bs reason like, 'oh, i placed a bid here and i see someobody always bidding with me...must be THEM' or some other bs like 'oh, im not getting shares here but someone else is ect ect'

    and this is totally different from a voluntary piggy backing scheme, where both the firm and trader have agreed to it. i'm not basing what i'm saying now based on that.....its nothing like that.

    i just know some things now. and no, i'm not out to make enemies so i'm not going to explain myself. so just take my word for it.
  3. I wouldn't be that worried. If you're thinking of it, someone else is too
  4. punter


    i would agree. lots of profitable strategies aren't even that liquidity sensitive, or gimmicky to the point that a monkey could do it.
  5. 50 trades a day isn't high frequency.

    anyway, if you're worried about it, don't trade just that one strategy.
  6. LeeD


    If you are seriously worried but execution speed is not an issue, see if you can sign up with 2 different prop firms that let you trade from your home or your own office. Then you can randomly send order to one account or the other... p[erhaps with some balancing to avoid accumulating large offsetting positions in the accounts. There may be issues with routing trades from one trading platform into 2 different prop accounts but given your concern the effort to set this up is probably worth it.
  7. punter


    yeah, that works too. lol but come on...the ave profitable daytrader making 5 to 10k a month... he has hard time brushing his teeth in the morning...but yeah, if you ever get mega rich trading, your idea is sound. but until that day...
  8. I thought the average ET trader was making 20-40 k a month. When did that change?