Questions to prop traders

[f_rover]

Hello all,
I would like to ask some questions to people that have experience in prop trading:
- How common is the use of daily loss limits and how do they compare with monthly loss limits (what kind of ratio)?
- How is, as far as you know, the expected profit in a month compared with the daily loss limit?
- What is bad performance for a trader and in what timeline this is normally measured?

Sorry if the questions can look a bit silly but I am quite new in this environment.
Thank you

f_rover

 

[red army]

Hello all,
I would like to ask some questions to people that have experience in prop trading:
- How common is the use of daily loss limits and how do they compare with monthly loss limits (what kind of ratio)?
- How is, as far as you know, the expected profit in a month compared with the daily loss limit?
- What is bad performance for a trader and in what timeline this is normally measured?

Sorry if the questions can look a bit silly but I am quite new in this environment.
Thank you

f_rover

Ur right not the best questions...

- very common, second question can't be answered and i think u know why.
- well you would it would be more otherwise u ain't trading anymore??!!??
- bad performance?? trading whilst under the influence of a loosing state of mind..timeline?? fews seconds (u hope) but could last months...

 

[f_rover]

Thank you for your reply , Red Army.
I am sorry to disappoint you but you are assuming that I know more than I actually do.
If it is not a problem for you could you give me some best practice examples about the relationship between daily loss limits and targets and other relevant practices (that my questions have not considered because of my blissful ignorance ). I have only an educated guess about it and I am looking for some comfort in the experiences of other peoples.

About my previous last question, I didn't frame it well. In other words, in a prop firm how do you evaluate the performance of a trader? In what timeline (excluding huge screw up)? Months? year? Do you use also some hyphotesis testing?

Thank you again

f_rover

 

[Pento]

Performance of a trader is measured simply by how much profit they make. At the end of the hour, day, week, month, year. You are only as good as your last trade.

For stops; if you can potentially make £300 a day then your daily stop should be negative £200. IMO.