power prop trading vs CCI rotational trading program
What's good WSO
I have two offers in hand one with a power prop trading firm and from CCI's rotational trading program. The prop firm would be as a junior trader and pays conservatively 1.5 more (probably closer to 2x) first year. Anyone have any advice on how to approach this decision? This would be my first position out of school
Prop power due to long term prospects and related markets across the complex (gas/renewables) which could see you do different things throughout your career. Prop bonuses are generous at the right shop, but obviously you’d need to consider how much risk they give you/your desk.
CCMT by a long shot
Always higher pay. Prop shop has to be good too if they r still around. There's not a lot of em today.
What is cci starting offer and how much projected bonus? Is the goal of the program to move you towards a desk in 2 years?
CCI is one of those firms pretty new to these programs.
For CCI, it's around 120k (signon+base) and not sure on projected bonus (I would assume not that high during rotations). I would have 3 rotations as a research analyst on financial or physical desks doing trading analysis and risk management. After that, i will either be permanently placed on a desk (as a junior trader or some sort) or do another rotation then get placed then (or not I guess).
The other opportunity is purely spec trading on power.
I would lean CCI at that level of comp. But very close would come down to also people/how much trust firm. Also how much enjoy prop trading right away vs possibly down the line.
Where do you want to end up in ten years? Both in Houston?
CCI will rotate you through most business lines which will give you both a broad commodity experience AND group rotation (Sales, trading, structuring, mid office/risk, fundamentals)
Power trading for a fund, (by the way, what KIND of fund? FTRs? Upto? DART? liquid term? Or god forbid...term?) will potentially provide a quicker route to a seat, but comes with insane amounts of firm risk to get there.
What regions (PJM? ERCOT? CAISO?) will you be looking at?
You will go gray much quicker at the fund, but could be done by 35, if both you and the firm are profitable.
Ask this question. If the fund folds in 18 months, what is your plan? Do you like trading?
I want nothing more to see more folks going into power and gas, but be VERY careful of being an unemployed 27 year old witg 5 years experience trading CAISO DART only.
Congratulations and welcome to the suck!
Thanks for your reply,
I’ll be trading virtual (inc/dec) and FTRs in some northeast market (I’m assuming PJM). The firm (only trades power) seems conservative but very lean. If this helps at all clarify the situation.
What are some of the Power Prop Trading Shops? Is that like Glencore Vitol Trafigura or are those Oil/Commodities? Just wanted to explore all avenues of product traded and am familiar with some of the equities/ficc shops but not too much of the Power.
SIG, Jump, DC Energy, other trade shops
I always remember the great line from Wall Street "... we're all just one trade away from humility, Bud"
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