Help/trading arcade

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whatarethechances

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Need to understand better what the set up would be at a place like this if I joined. Can anyone help?? How do they manage risk? How much can you lose? How long do you have to prove you can consistently make money? What is the turnover of people? Is this basically just day trading so very difficult to make money? What is the edge people use?

appreciate any inside info on these places?
 
whatarethechances said:
Need to understand better what the set up would be at a place like this if I joined. Can anyone help?? How do they manage risk? How much can you lose? How long do you have to prove you can consistently make money? What is the turnover of people?
Click to expand...

Arcades don't manage your risk, and there's no time limit on your profitability. You turn up with $x for your account, sign up to pay $x per month for a seat, select the setup you need in terms of packages, feeds etc. and trade however you want to trade. They offer IT support, and 'an office environment' for the most part.

If you're talking about a proprietary trading firm, then it's different. They will back you with their capital in exchange for a split of the profits. They will often provide training, trading support and more of a corporate feel than an arcade - you work for a prop firm, but work at an arcade.

They will manage your risk by initially limiting your exposure in the markets, as well as implementing daily/weekly 'stop losses' on your account. Some firms see an incredibly high turnover of recruits (30 every few weeks), others take on a small intake each year and invest months of training and effort with them. It's generally accepted that it takes between 6 and 18 months to become a successful trader at such a firm, once you have a permanent position; obviously there is a bell curve for speed of success.

whatarethechances said:
Is this basically just day trading so very difficult to make money? What is the edge people use?
Click to expand...

These are crap questions so I won't bother with these.

Good day, SL
 
Actually Trading Arcades do manage your risk, they have little choice. The question you should ask is who holds the account? If you having large capital the usual choice would be to have a direct clearing account with a Man Financial or a Fortis and use an associated trading arcade like Schneider’s or Xconnect. Usually you then have three tiers of risk management, yourself with fat finger limits and trading limits imposed on you and the financial balances on your account, the trading arcade then monitors intra day risk and then global risk with your clearer. Risk is usually monitored on the front end you are using; most trading platforms provide global risk access. How much can you loose? Every penny, but most good arcades would pre agree a daily loss limit, at that stage they would either close you out and send you home for the day or reduce your risk limits for the remainder of the day. I should say some of the larger "warehouse" arcades have little time or inclination to be that helpful. Turnover again depends on the quality of the trading room you go too, the better ones have very low turnover and you will find people who have been there for years, low quality churn and burn rooms have high turnover although thankfully most of these have gone out of business. At the moment volatility is such that day traders are making very good money but once again the amount of money on your account will dictate whether a trading room is happy to let you run overnight positions.
 
Can you give me any actual figures as to what a reasonable loss on a day would be at a better establishment? What would be a reasonable yearly profit target be at a place where you don't use your own money?
 
whatarethechances said:
Can you give me any actual figures as to what a reasonable loss on a day would be at a better establishment? What would be a reasonable yearly profit target be at a place where you don't use your own money?
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i remember someone here says there are trader in firms never had any loss for 3 consecutive years, try figure out your 'reasonable loss' again.. lol
 
Hmm wasn't aware of that Parky, cheers for that

OP why are you so concerned about how much you're allowed to lose, and the minimum you'd be expected to achieve? Prudence is a good thing, but going into something with an entirely defeatist attitude is never beneficial ime
 
Skill Leverage....Not a defeatist attitude when you are trying to gain as much information as possible. Its like a stop in a trade.... without understanding the downside how do you expect to have a proper evaluation of the upside or the risk reward of the situation. If you know the risk parameters you can basically figure everything else out from there.
 
Put it this way; if I was interviewing for a job at a prop firm, I would never ask the question 'How much am I allowed to lose before you kick me out?'.

SL
 
would you want to know what risk parameters you have? This is a genuine question because some prop firms say if you lodge 25k or what ever they will let you leverage 5 times which I find odd because its all about how much you can lose. If you can only lose your own 25k then it would be risky to use 5 times leverage. Have you worked in a prop firm yourself?
 
Let me ask you so. What question would you ask in order to get a good idea of what you should expect if you were interviewing considering you are paid as a percentage of your profits?
 
OK from recent experience, I didn't; I based my opinion on the fact that the company had been trading successfully for a decade, I had spoken to many people on T2W who were successful traders that had come through their scheme, and thus deduced that these guys knew what they were doing from their end, and the onus would be on me to work hard and perform. I assumed that they would teach me risk management as part of the training and would give me sufficient room for manoeuvre within their parameters.

In short, asking numerous times for a precise figure that you can lose is, in my opinion at least, pretty pointless. I understand where you are coming from, and I completely agree that good traders understand what they stand to lose as much as they stand to win before they enter a trade; I just think that, in this context, it's not really one of the things I'd be concerning myself with when looking for a job with a firm.

SL
 
Largesse said:
how are you still allowed to post here? (n)(n)(n)
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you started to make me think youre 13 years old boy or something, i dont even know you at all or probably you're the one keep calling me scam after i post my trading journal at other forum, arent you? :sleep:
 
Ah, for the avoidance of doubt I am suggesting you are a child molestor and yet at the same time were molested. In a gay way.

Now sue me!
 
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