Draft Trader

Seen this movie before. Know how it ends. I cannot stress this enough: no matter what the financial institution is... if THIS is somehow used as an excuse for maintaining a business relationship... You know what....

Are you familiar with the Broadway play and film "The Producers"? I feel like there are #Propfirms that are a proverbial "Spring Time for Hitler", if we draw an analogy. You know... created with the intention of failure; because ultimately its pretty profitable if you fail correctly.

You can draw a line to the day that I ramped up my size @breakoutprop It's no secret I treat each #perp #propfirm account likes it's own singular trade (account loss limit is my stop). That's a fancy way of saying I full port every trade. I started doing this earlier this year, with 10k and 25k size plans - working my way up for the 200k. I specifically use the Turbo accounts, as the 1:3 loss limit to target ratio makes sense with the 3% drawdown and lower cost for the account. While ramping to the 200k has increased my costs; I have also been able to greatly increase the average #payout I am taking. Trading? Gambling? Investing? What exactly is this called?! This is prop. It's a little bit of everything gamified together. I know one thing for certain I am not here to be right, I am her to make money... Play the game, it's meant to be played, and check out Breakout with code DRAFT for max discount Not financial advice

Traders:

Well said.

And understanding why CME Futures price so far from the index compared to perps is another big difference. Both markets (perps and futures) are auctioning the price for some future settlement. Perps constantly roll that settlement forward, basically 1 day at a time. Each day is kind of like a new futures contract- the prior days contracts are settled, a roll fee is assessed, and the market continues day after day without a hard expiration. You don't see anything but a fee hit your account. Futures roll at one specific settlement time per contract. After that, a new contract is established to continue the future auction to the next delivery, many times months in the future. You have to actually close the old contract and establish a position in the new contract to hold it through settlement. That difference in price between spot index and futures / perps - is the "carry" a market demands to hold a position through that expiration date. A 'premium' for time and the risk of volatility over that period (in a sense). Perps price that via funding rates and market spread, which futures do so via calander spreads (the difference in price between two expirations); but it's essentially the same functional mechanic as time value in options. Learn to trade the carry and you can trade literally anything.

I have this debate with my internal risk team (aka my big balls) all the time. You can be as fancy as you want: but trading is just exploiting statistical edges in open markets... Undoubtly if you can reduce the cost/monetary risk of any outcome (not the probability) you are also increasing your edge... We often only talk about the edge of probability increasing, but we leave out the profitability that can be gained through a different risk ratio... You can turn a coin flip into positive expectancy this way; by earning over 1.1:1 reward/risk for every 1:1 probable outcome. Prop let's us do this by reducing the actual risk upfront without changing the contract size an account is exposed to (you get all the benefits of that size, without the actual cost). "But now you are just gambling" ... Am I?

The amount of mental gymnastics people are using to make a very clear "B book" model somehow appear as "A book" is staggering. Zero sum game closed systems... they arnet magical, they are all the same.

Why is the South Park episode with the Underpants Gnomes suddenly a familiar business plan...

If we all want more transparency- why is the "next great thing" the least transparent venture I have ever seen?

The fact there is someone or an institution - even my own broker- on the other side of my trades doesn't bother me... Good luck! What bothers me is that there is risk of systemic failure when there is no insulation between the exchange, clearing firm, broker, and prop trader... When one entity provides ALL those services to a retail client in a dark "liquidity pool" the call their own "order book" - there is a long history of failure attempts to bucket risk of counter parties like this... Why is this time different?

Gold is the currency of Kings Silver is the coin of Gentlemen and DEBT is the shakel of slaves!

Vest looks a lot like FTX... Only Vest Prop is their Alemeda... I smell Tulips.

yeah I'm certainly not trading with them and I'm certainly doing my due diligence and offering my opinion of the matter to anyone who wants to hear it. Stay away from Vest. hope I'm wrong for all my friends that are trading with Vest sake, but it's 100000000% not for me.