A bit of a stupid question, but...

[fcmisc]

Hi,

I'm probably going to move from being a firm trader (salary plus discretionary bonus) to a backed trader (no salary, get paid a defined cut of profits, no money down).

I've been very consistent so far, but have a few questions that I'd rather not ask at interview. In general:

- Are backed traders liable for losses, should they go through an appalling losing streak?
- How do arcades tend to react to early losses? There's a chance I could drop 6 figures in a day. Historically, it's taken me under a week to dig myself out of such holes, but if I get stopped out at the low and booted out of the arcade, I'll obviously be out of a job.

Has anyone moving from employee, to backed trader, ever encountered such problems?

Cheers,

fcmisc.

 

[DC STOXX]

Hi,

I'm probably going to move from being a firm trader (salary plus discretionary bonus) to a backed trader (no salary, get paid a defined cut of profits, no money down).

I've been very consistent so far, but have a few questions that I'd rather not ask at interview. In general:

- Are backed traders liable for losses, should they go through an appalling losing streak?

Yes, the losses would come out your account

- How do arcades tend to react to early losses? There's a chance I could drop 6 figures in a day. Historically, it's taken me under a week to dig myself out of such holes, but if I get stopped out at the low and booted out of the arcade, I'll obviously be out of a job.

You would have to speak to individual managers individually themselves, I'm sure no firm likes to see 6 figures go in a day under one trader, buts it all relative, if its all in a days, or a few days work then thats completely different and I'm sure it wouldn't be THAT much of a issue.
Would you be doing the same thing you are doing at your current firm, because if your going to be trading products/strategies which are completely new to you i doubt many arcades would initially give you the leverage to drop 100k+ in a day.

Has anyone moving from employee, to backed trader, ever encountered such problems?

Cheers,

fcmisc.[/QUOTE]

 

[DaxDestroyer]

Hi,

have a few questions that I'd rather not ask at interview. In general:

- Are backed traders liable for losses, should they go through an appalling losing streak?
- How do arcades tend to react to early losses? There's a chance I could drop 6 figures in a day. Historically, it's taken me under a week to dig myself out of such holes, but if I get stopped out at the low and booted out of the arcade, I'll obviously be out of a job.

Has anyone moving from employee, to backed trader, ever encountered such problems?

Cheers,

fcmisc.

IMHO these are exactly the questions you should ask in the interview

You must know the SIZE, your STOP LOSS and all this.
Only if both sides are happy with the rules, it can work

Tell them, what you do, then they can have faith. Show them your trade record.

ONLY BUT:

USUALLY, your max. loss in a single day should not be bigger than 150% of your AVERAGE daily gain

Happy new year!!!