What a legit futures prop firm might look like | Traders Hideout

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What a legit futures prop firm might look like

  #8 (permalink)

North Carolina
Trading Experience: Beginner
Platform: NinjaTrader, Tradestation
Favorite Futures: es
Posts: 644 since Nov 2011

MichaelFlowTrader View Post
I just checked out MES and they have joined with another company and will launch in February. The 50% split is a little high.

Speaking of disruption-- I would like to see an entirely different model that is more of a marketplace for equity providers and traders to link up. The equity provider can request a test period from 30-60 days and then have their own risk strategy.

That model already exists to some degree via Collective2 or Striker. The problem, at least with, C2 is that you can't bill per contract so from the system providers point of view then it makes it difficult to work out. For example, I had 2 top systems there over a 2 year period and closed them because it wasn't worth it. Striker looks more promising but haven't opened an account yet.

The other way to view a 50/50 split is that if a firm is truly offering an advantage and taking the risk then it's a fair split. Remember, the split isn't what's important it's the capital they give you. I'd rather trade with a 50/50 split with a larger amount of capital and no risk then trading with a higher split and taking the risk. Looked at another way, if a firm can't earn a 50% of my profits then they're probably not offering enough value and/or your interests may not be perfectly aligned. That would encourage the firm to make money other ways.

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