Prop firm decision

[barryb]

Hi there

I've just gradated from uni this summer and have been applying for jobs in prop houses since March. I've been lucky enough to receive interest from two firms, however I am unsure which to go to. One is run by a single experienced trader who is part of a large parent company. He offers a tried and tested training programme and significant financial backing if you were to be successful. There are approx 8 traders excluding the trainer, the most experienced having only 8 months under their belt. The other house has about 12-15 traders, half of them being ex-liffe floor traders. Their training comes in the form of teaching their methodology which they assure me works, however there is no official training programme like the other firm. Does that matter? The funding is also more limited, 20/25k when you start out. However a lot of one 2 one training will be provided, which is the reason I am tempted. They also have never got rid of anyone, as opposed to the other firm where only 50/60% make it to trade live. Any advice would be hugely appreciated. Thanks.

 

[RUDEBOY]

This one is simple! How much money have they got behind them? They will watch your trades! You will be given a proportionate amount depending on your proficiency. But, i see what you are saying ....What is best for you? Mmmm, you never know? RB.

 

[RUDEBOY]

On the face of it.......What do you think, barryb? Come on you know! RB.

 

[RUDEBOY]

Take the best 'money'!

 

[barryb]

Thanks for the replies Rudeboy, I'm edging towards the ex-liffe traders even though the funding isn't as large. I'm thinking that if i'm any good, switching to a larger firm with more capital behind them won't be a problem in the future once i've cut my teeth with these guys. What do u think? Do u trade with a prop firm/arcade or from home RB? How long have u been trading and what do u trade? Any other views would be most welcome.

 

[okwon]

From the description you have provided, I would go with the ex-Liffe locals.

1. There are more experienced traders there to learn from.
2. You'll be taught one on one with an experienced trader on a specific methodology - For the most part, I think formal training programs are garbage. Depending on the person running the training program, it can actually hurt you a great deal. Alot of times, shops have incompetent people running their training program and the last thing you want to do is follow their trading advice.
3. Funding won't be a problem if you are a profitable trader.

 

[barryb]

Thanks for the reply Okwon. Do u trade for a prop firm yourself, if so where, and what do u trade?

 

[TWI]

It will be unlikely to make much difference. If they are both running successful programs already then it is likely both methodologies taught can provide a workable edge.
Go with the people who you felt more comfortable meeting or more to the point the environment that excited you the most.
Suggest you find out what their drop out rates are too. Some shops can be very ruthless about that. I would also find out what the average earnings of the previous grads are over the first and second year. Will give you an indication of what a hard financial situation you will face in the next 12-18 months.

 

[okwon]

Yes, I trade prop. in Chicago. I had a formal training program, it was worthless. I received far more useful information talking to a variety of already successful traders.

 

[barryb]

Twalker, the ex-liffe traders have never got rid of anyone through not picking up their methodology, seems quite a tempting offer when you hear of 50% trainee attrition rates at other firms, including the other one i mentioned! Each firm emphasises the amount of one 2 one tuition available, however as Okwon said above, at the ex-liffe firm there'll be more opportunities to speak to experienced traders than the other firm where there is just one experienced trader, however he is very good! Someone has left the ex-liffe firm recently in order to trade bigger with another house, should this be a concern to me at this stage, or should I just concentrate on the training aspect offered?