risk

[pelzar]

Do any SB firms allow you to place a daily stop loss whereby one can predetermine a maximum loss in any one day for example no more than £100 or no more that 1% of your capital. I realise that you can place stops on individual trades however I realy need something that is like what they impliment at Futex/Schneider where you cannot lose more than a certain amount. E.g at Futex when you first go live you are stopped out at £500.

Thanks

 

[police]

they do that. sometimes its a good thing , sometimes its counter productive.
The difference is at Props you are trading with someone elses deep pockets, rather than your own not so deep ones. That can help a lot especially in the learning stages. eg. Imagine you have 2k in a spreadbet account. Lets say that because you are learning you lose most of it in the first few days. Its very difficult to take that kind of hit forwards in a productive fashion. To be honest, if you lose 2000 at the Prop its no sweat for them (its almost expected for a newbie)

 

[pelzar]

Thanks very much mate, I do appreciate you taking the time. I've traded prop before but in this case I am also trading someone elses money (someone with alot deeper pockets than Futex) Which is why I need this system put in place, to satisfy him.

 

[MrGecko]

Don't know if anyone does offer something like this (and tbh, I would think SB's would be hesitant to accept someone trading OPM with them without FSA authorisation etc?)

Anyway - a simple alternative is to include conditions into your agreement - something like "if I lose more than XXX% in a day, or suffer YYYY losing trades in a row, and then continue to trade, you have my c0ck on the block and I am accountable for ALL loses resulting from said trades, and eligible for NONE of the profit EOD should that be the case".

Something like that would be easier I reckon.

 

[pelzar]

Mr G,

Could you reccomend who to use for trading, he wants to start with sb then move on to dma. It's gonna be large'ish' account, I was thinking VDM?

 

[MrGecko]

I'm not in a position to endorse one SB firm over another TBH... I guess you want one with the best reputation for not screwing punters over (like CMC, for example)... it might be worth spreading the funds over a few accounts, and making the trades in a 'rotational' fashion; it spreads your "we're takin' all your cash, a$$hole" risk, and if one broker starts to give you grief or system goes down you have the opportunity to a) hedge out your positions, and b) carry on doing business without the hassle of creating new accounts.

Just an idea, sorry I can't offer any specifics (except that I have only really ever heard bad things about CMC)

http://www.trade2win.com/boards/first-steps/50992-cmc-delayed-paying-my-money.html
http://www.trade2win.com/boards/spread-betting/52856-cmc-complaint-ombudsmans-responce.html

Just a thought, but will VDM offer broking services too (or are they specifically market makers?); if that is the case, you might be able to open just one account and trade both sb and DMA from the same account?