$150K ain't gonna buy you a 'superstar' trader. Maybe somebody whose strategies have died out and needs some income asap, but not a guy who's got a 'good' system working. It can buy you a smooth talkin' recruiter, though! But yeah, still better than paying newbies $2-3K/mo to reinvent the wheel.
I am actually located in Florida. So it might be tough to find a superstar trader here, FNYS do have an office in Boca though. I do agree having one profitable trader would help.
See that is the point, I don't think this is a bad idea. But I decided to come on here to see what other traders thought. I am not trying to run this huge operation, just something small. Mav is being a great help and I am listening to him. I don't get how you can say there are no more edges in equities. I am still making money and out of the 15 traders on my skype list, 11 of them are still doing very well. Actually the reason I was even looking at this idea is because of the failure rate in this industry. I figured this would address the reasons why new traders fail. As for the small to mid size trader not having an edge that is so not true. The reason why I think I am doing well is too many people share your sediments and have moved to trying HFT or something else like that. There is still money to be made.
Well, most of the size traders I know at Gelber, Transmarket Group, Chopper, etc get small base salaries that are really draws on their performance. Most of these guys are willing to leave their firms if you can give them a bigger cut i.e from 40/60 to 50/50 or to 60/40. I'm speaking of the Chicago prop firms. There really is no such thing as a salary here. The draw gets built into their monthly nut along with their desk fee. Of course these guys are use to swinging some big size so I hope he has the capital to provide them. If it's only one guy, he should be able to.
I do not believe you have the money. Most likely you are just dreaming and wasting people's time. Here is my proof: I can actually take care of $1K loss per month (so you have an edge of $3K from the start), and I am almost certain you will not take the offer. This offer should stop this talk. This offer also extends to anyone with a shop--a challenge to other shop talkers. And if any of you thinks you will lose (which you can), I invite you to a challenge here on ET so I quick your ass in public using real-time paper trades--- at least we will have some fun. Enough of this non sense of this board: I believe that shops make money from commissions/software/etc, lending using SPAN margin, and and other people money. In others words, they most likely make money from picks and shovels.
not trying to be a prick here, but i dont actually understand your words. specifically, the idea of 'proof', how your ability to withstand 1k of heat amounts to a 3k 'edge' for the poster, lol...i dunno man. you can always just pm me if you care to explain.
I am sure you and your friends are making millions. I never claimed noone is making money, I personally know at least a few that are doing good. I am talking about real edge. Real edges existed in equities and even index futures, but at this point, they have been marginalized to an absolute minimal value and chopped up by HFTs. Going long a stock because the charts seems to suggest so is not an edge. Bullets, NYFIX, CHX/PHLX/Cincinatti/Boston arbs, ECN arbs, tape reading and more, now those were real edges. The most commonly traded grounds are ultra competitive and oversaturated. It makes no sense to do an incubation program in such environment unless you actually have a real edge that is scalable and that you can teach. However, due to competition and market saturation, such edges will not exist. And that is the main reason why your concept would fail. Why do you think all the current "prop firms" charge a "training fee"? It's a risk deposit, nothing more.
His plan is to pay a trader $2K as salary. My proposal is no salary, and giving $1K to cover losses. The difference is at least 3K (in salary version he has to pay other things, less tax deductions, other liabilities). But assume only 3K. I gave the example to show that the discussion in this board is just bull crap, because if it were real they would take my proposal because it is cheaper and more convenient. I am that no one will take it which will prove that it is just empty talk around here.