Some people believe that all of these prop firms are operating like a ponzi, but I actually believe that MFF pushes trades to live market. Just my opinion.
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prop firm new model - my trading journey 871 replies
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Disliked{quote}-Absolutely. If they are not pushing trades to a live market, then their reasoning is crystal clear. Some people believe that all of these prop firms are operating like a ponzi, but I actually believe that MFF pushes trades to live market. Just my opinion.Ignored
Disliked{quote} Wow a whole 4 years experience, must be a real professional.Ignored
Disliked{quote} I would agree 100% with that statement. FTMO is great as far as credibility, longevity, trading conditions, etc. I also am 100% that they are executing in a live environment somewhere, somehow. However, they are definitely structured where the fees are a MUCH LARGER revenue component than MFF. I believe, once MFF is 100% automated and works some bugs out, they will be clear #1.Ignored
Disliked{quote} Yep, I think so unless FTMO change tact. With this outbreak of suppliers of simulated MT4 accounts (I can't bring myself to call them Prop as they are not) they are creating a race to the bottom undercutting the sign-on fees and offering discounts, etc. So is this really a viable business in the foreseeable? Not sure but the demand certainly seems very high, I'm guessing they blow their money and use the gamblers fallacy to open another account and blow that one, then onto the next etc.. It's a bit like an expensive recurring lottery ticket!...Ignored
Disliked{quote} They probably made a couple of Bitcoin trades on Robinhood which of course makes them seasoned professionalsIgnored
Disliked{quote}-Absolutely. If they are not pushing trades to a live market, then their reasoning is crystal clear. Some people believe that all of these prop firms are operating like a ponzi, but I actually believe that MFF pushes trades to live market. Just my opinion.Ignored
DislikedInitially I thought it was a ponzi but with experience I believe that's a viable business, based in specific metrics resulting from collected fees and failed challenges / enough to pay the profit splits and make a business profit. If that's a ponzi it's a slow one but I don't think so. Out of curiosity, what's your thoughts when you say that they may be sending trades to live market, knowing that most of prop trades lose money ? What would be the reasoning for that ? At the end they would end up losing what the traders lost (or a % of that). Just...Ignored
Quoting MyForexFundsDislikedWe make money in a variety of ways and have always been transparent about it.
1) Users participation fees cover our expenses to operate as a business
2) Traders who reach the live trading accounts or accelerated accounts trade on our liquidity accounts and we execute trades according to our own risk profile. Its a little more complicated than A book / B book that you are likely to reply with. We generally execute all orders that can be filled in the market and then manage risk on the other side using our proprietary accounts. For example, if we think someone is a bad trader, we may trade short when they are long or vise verse.
3) Proprietary trading account profits from trade data. On top of taking risk out of our book we also may increase position size of successful traders to get more out of the market. As we have grown we have a lot more traders who we are doing this with than in the beginning and its becoming a model where we are starting to consider lowering our intake of new business. We aren't quite there yet, but sometime in 2022 we may start only taking new business in sporadic periods.Ignored
Disliked{quote}-If no real trading is happening (or selling of data etc.), and traders are paid solely by profits that are generated from new signups, then by definition, it is a ponzi.{quote}Ignored
Disliked{quote} Not necessarily a ponzi, if it's sustainable long term (a ponzi is not sustainable). For example, if payouts are 1M and collected fees are 1.5M then would be a sustainable normal business, like a casino. What you quoted makes sense, assuming that most customers lose money (which should be the case) "For example, if we think someone is a bad trader, we may trade short when they are long or vise verse." I believe this is where a reasonable chunk of the profit is coming in big companies with lots of analytic and stat data...Ignored
DislikedNot necessarily a ponzi, if it's sustainable long term (a ponzi is not sustainable).Ignored
QuoteDisliked"A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. The scheme leads victims to believe that profits are coming from legitimate business activity, and they remain unaware that other investors are the source of funds."
Disliked{quote} i beg to differ on this one. if they would be able really reliably decide who or what constitutes a "bad trader"... then A. why the heck do you fund one? B. why do you need traders at all? just place your own trades on your better than your prop traders' belief!Ignored
DislikedI guess they were getting too much hate about their payout cap lol {image}Ignored
Disliked{quote} Also removed the "4 years of trading experience" lol.. I think these guys are lurking here in this thread. Still doesn't take away the fact that the guy registered the holding company when he was 16 and was allegedly trading at 14 year old. Gotta give it to the kid he's got ambition and jumping on the prop gravy train, but he'll never see any of my $$$. @Takisd you up to give them a try? {image}Ignored
Disliked{quote} Also removed the "4 years of trading experience" lol.. I think these guys are lurking here in this thread. Still doesn't take away the fact that the guy registered the holding company when he was 16 and was allegedly trading at 14 year old. Gotta give it to the kid he's got ambition and jumping on the prop gravy train, but he'll never see any of my $$$. @Takisd you up to give them a try? {image}Ignored
Disliked{quote} I don't give kids pocket money.... I send them to gladiator school, time to fight for your money children. The cap is enough for me to say no especially if volatility sticks around. I'd say theres a payout cap because they dont have capital, if you don't have capital dont start a prop firm.Ignored