Australian (ASX) Stock Market Forum

Prop Shops in Australia

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James Austin said:
good luck Naked,

myself, these places do not appeal.

i wonder if there is much performance pressure?!;

that's not a bad thing though, some personailities, maybe yours?!, would thrive in such an environment.
Click to expand...

Trading with a group of people would be much more interesting/exciting then trading alone. Plus with my limited capital, I need to take huge risks per day to get where I want to be.

You don't know pressure until you try and land a flimsy glider in high speed winds on your first solo flight with a bunch of people watching. Dam that was fun :D
 
white_goodman said:
i find the advertisment silly anyway, if you have 5 years experience and a proven track record you wouldnt need to work for them lol
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If you got a substantial amount of your profits given back to you it might be worthwhile. Imagine getting 20% of your profits back on a billion worth of capital you trade with :)

(note: im not saying that this particular job is exactly like this)
 
Yeh, I hear Singapore is becoming a big destination for global props. Trying to move in on the Asian markets with quicker connectivity (hence, the intraday part).
 
Naked shorts said:
If you got a substantial amount of your profits given back to you it might be worthwhile. Imagine getting 20% of your profits back on a billion worth of capital you trade with :)

(note: im not saying that this particular job is exactly like this)
Click to expand...

but what im trying to say is if you have a proven track record for 5 years your capital should be near to the amount that a prop shop would intially give you anyways...
 
white_goodman said:
but what im trying to say is if you have a proven track record for 5 years your capital should be near to the amount that a prop shop would intially give you anyways...
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You can't loose your own money as a prop trader (in a good firm anyways).

And the connectivity is lightening fast (again in a good firm).

Some firms may offer a retainer (some people like it for the safety aspect).
 
white_goodman said:
but what im trying to say is if you have a proven track record for 5 years your capital should be near to the amount that a prop shop would intially give you anyways...
Click to expand...

It actually makes very good business sense to use a prop to trade rather than your own capital. And if you are looking to push it you will have much much larger positions than what your own account can do, even after 5 years. The problem with doing your own account is you have to live off your capital so every time you take some out you reduce your trade size. This is much less of a factor in prop. You take earnings and still trade the same size.

+ what MR C has mentioned.

+ Not to mention the fact that human contact each day is a +.
 
I play golf weekly and socialize with 3 o4 4 prop shop traders and have done for 10-years. Here is how it works if you want to get involved:

There are 3 ways to get involved:
1. Through their own training program, although only a few run these
2. Approach them with your own trading statements
3. Approach them with system test results

Let's assume you have designed a SPI system through Amibroker or some other program and approach one of the Prop shops to get some funding.

They will assess the system as best they can with the information you provide. They needn't know the intricacies or coding. They will just want a general over view of what you are trying to do.

They will allow you to start trading with a 1 lot with a maximum monthly drawdown - probably around the $3,000 mark.

After 3-months they will assess progress and may allow you to go to 2 contracts and a slightly larger monthly drawdown.

This process is ongoing.

In terms of remuneration you will usually only be provided with a split of the profits. At first, and probably for some time, that split will be about 40% to 50%. The more consistent you become and the lower the drawdown, the larger the split goes. I know a few guys who are now at 80% which is the highest rate that I'm aware of in Australia, but these guys are making $50k every single month without fail.

if you hit the monthly drawdown amount early in the piece you will be pulled aside and questioned, Depending on how that goes they will more than likely let you continue with a tight leash. If you consistently hit the drawdown amount chances are that they ask you to leave.

Bottom line is that they offer you a chance to prove yourself and the route taken from there depends on consistency, profitability and exposure.
 
Nick Radge said:
I play golf weekly and socialize with 3 o4 4 prop shop traders and have done for 10-years. Here is how it works if you want to get involved:

There are 3 ways to get involved:
1. Through their own training program, although only a few run these
2. Approach them with your own trading statements
3. Approach them with system test results

Let's assume you have designed a SPI system through Amibroker or some other program and approach one of the Prop shops to get some funding.

They will assess the system as best they can with the information you provide. They needn't know the intricacies or coding. They will just want a general over view of what you are trying to do.

They will allow you to start trading with a 1 lot with a maximum monthly drawdown - probably around the $3,000 mark.

After 3-months they will assess progress and may allow you to go to 2 contracts and a slightly larger monthly drawdown.

This process is ongoing.

In terms of remuneration you will usually only be provided with a split of the profits. At first, and probably for some time, that split will be about 40% to 50%. The more consistent you become and the lower the drawdown, the larger the split goes. I know a few guys who are now at 80% which is the highest rate that I'm aware of in Australia, but these guys are making $50k every single month without fail.

if you hit the monthly drawdown amount early in the piece you will be pulled aside and questioned, Depending on how that goes they will more than likely let you continue with a tight leash. If you consistently hit the drawdown amount chances are that they ask you to leave.

Bottom line is that they offer you a chance to prove yourself and the route taken from there depends on consistency, profitability and exposure.
Click to expand...


wow. very interesting.

does this mean there are prop shops in Noosa? I thought they were all in Sydney??
 
Trembling Hand said:
You can trade remote that i know of with Propex and Fusion.
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Yeh, from what I am aware, Fusion more remote, Propex more at the office. I imagine connectivity would be best from the office.

Interesting stats on the systems example Nick. Very different to the set-up with discretionary trading (for a beginner) that I know of. 6 lots to begin with, a 50% split and DD is sometimes far larger than 3k per month, gets there in a couple days even. More you earn, larger the split.

In Europe, I hear splits are higher, due to the competition. 90% is not uncommon.

:2twocents
 
Do you reckon propex will have a midyear intake?
I've still got a semester left.... :(

A job here would be a dream come true for me
 

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