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is 40-50 ticks per day doable

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Philly, Pa
Trading Experience: Master
Platform: NinjaTrader
Favorite Futures: ES, ZB
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Here's the deal if you are an experienced trader, and you are considering a "partnership" with a prop firm. You will have access to the kind of buying power you never would have had when you traded independently. However, the trade-off is your payout is going to be 30-35% of your net P&L, depending on the firm and depending on if you are trading equities or futures.

So, you must be able to scale your trading to the point, where you are making substantially more money than you were making, when you were trading independently, just to earn what you were earning when you were trading independently. And you are going to have to trade from their offices; they will not allocate capital to you, and allow you to trade remote.

If you are a beginner or an inexperienced trader, it might be difficult to find a prop firm in this ( HFT dominated) environment, that will "hire" you, and teach you how to trade their money. Schoenfeld recently terminated about 1/3 of their traders, due to their inability to make money in these markets. The exception is if you have quant skills, then you will be in demand.

One caveat: If a firm requires any kind of deposit, the odds are they are not a prop house, but a commission house, that is more interested in churning your commissions or engaging in liquidity rebate trading.

Last edited by tigertrader; October 23rd, 2010 at 03:16 PM.
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