My P/L = 470%+ but I'm getting f*cked over by my employer.

I'm a prop trader at a top boutique, running my own book. My last month's performance is over 470%. I literally struck in the lower-millions for my firm in just one month. granted, i've had losing months in the past, but my past annualized returns have been a steady 90-120%. Someone told me off the record that i seem like a 'threat' to some senior management.

The verdict? They might 'let me go' or transfer me to a lower trading group, or restrict what i can trade citing reasons that I "have trouble getting along" with others, basically pissing me off and forcing me to leave on my own, despite the fact that i just made a shitload of money for them. But it happens, yeah? It's an uphill battle basically. Me against the firm. Bullshit.

What would you do in this case?

 
Best Response

Compile your track record stats and transfer to another prop firm. I interned at a boutique investment bank last summer doing grunt work for the index arbitrage traders while also managing my own small book. Made a killing during the month of May and August yet they did not increase my capital base, while another intern who was related to a VP within the IBanking division had his account size increased by 60% even though he was hitting his daily loss limit on a daily basis. Although I'm certainly grateful for the opportunity, it made me realize that even prop trading at a boutique is far from a meritocracy.

 

Common sense would be to shop your skills at firms that focus solely on profit i.e. largers firms. While its not 100% usually the smaller the firm the bigger the egos.

Follow the shit your fellow monkeys say @shitWSOsays Life is hard, it's even harder when you're stupid - John Wayne
 

This happened to papa W.Beach back in the day....

I cant remember the name of the firm he traded commodities for, but it was somehow associated with Solomon Brothers as I remember his stories about Gutfreund. He made the firm, and himself, so much money in one month that a bulk purchase of trash bags from Sam's wouldn't be enough to hold it all. He was let go shortly after. I wouldn't sweat it or let the feeling linger too long. He ended up better off.

Another thing my dad made clear is that money talks. You'll be just fine. Their loss, Fuck 'em

"I'm short your house"
 

Shank the fuckers

Ok, just kidding. Start looking for a place that's going to pay you. Your new attitude is "fuck you, pay me," just remember to smile so that people like you and want to work to your benefit.

Get busy living
 

well if it makes you feel better i also work for one of the top boutique/market making firms trading ETFs, i trade a massive book with pnl of almost high 7 figures, approaching 8 figures so far this year, sharpe ratio of 8.5. I trade the book with 1 other person with me being here for 4 years, and him for 7 years and my preliminary #s indicate i'm only getting about 2.5%-4% of the book's PnL. complete shaft. i'd be very interested to hear why the owners think you're a threat if you're making that much money unless you're putting on trades with negative edge and basically gambling. what's your sharpe ratio?

i think the good boutique firms know that most prop trading firms are closing up and there's a consolidation process going on and given the environment out there amongst banks and hedge funds as well, they want to save capital to pick up experienced traders where they can. we're also cutting back on ta/junior hires as well b/c of this.

my advice to you is to go to a HH and ask him to get some offers for you and then you can make a more informed decision. see what's worth lifting but don't do anything stupid in this environment b/c it's not as easy as you think to shop your book around unless it's got a high sharpe ratio and you have a multi-year track record

 
abcasdf:
well if it makes you feel better i also work for one of the top boutique/market making firms trading ETFs, i trade a massive book with pnl of almost high 7 figures, approaching 8 figures so far this year, sharpe ratio of 8.5. I trade the book with 1 other person with me being here for 4 years, and him for 7 years and my preliminary #s indicate i'm only getting about 2.5%-4% of the book's PnL. complete shaft. i'd be very interested to hear why the owners think you're a threat if you're making that much money unless you're putting on trades with negative edge and basically gambling. what's your sharpe ratio?

i think the good boutique firms know that most prop trading firms are closing up and there's a consolidation process going on and given the environment out there amongst banks and hedge funds as well, they want to save capital to pick up experienced traders where they can. we're also cutting back on ta/junior hires as well b/c of this.

my advice to you is to go to a HH and ask him to get some offers for you and then you can make a more informed decision. see what's worth lifting but don't do anything stupid in this environment b/c it's not as easy as you think to shop your book around unless it's got a high sharpe ratio and you have a multi-year track record

Very impressive that you have a sharpe of 8.5 trading ETF's. Are you doing high-frequency?

 
abcasdf:
well if it makes you feel better i also work for one of the top boutique/market making firms trading ETFs, i trade a massive book with pnl of almost high 7 figures, approaching 8 figures so far this year, sharpe ratio of 8.5. I trade the book with 1 other person with me being here for 4 years, and him for 7 years and my preliminary #s indicate i'm only getting about 2.5%-4% of the book's PnL. complete shaft. i'd be very interested to hear why the owners think you're a threat if you're making that much money unless you're putting on trades with negative edge and basically gambling. what's your sharpe ratio?

i think the good boutique firms know that most prop trading firms are closing up and there's a consolidation process going on and given the environment out there amongst banks and hedge funds as well, they want to save capital to pick up experienced traders where they can. we're also cutting back on ta/junior hires as well b/c of this.

my advice to you is to go to a HH and ask him to get some offers for you and then you can make a more informed decision. see what's worth lifting but don't do anything stupid in this environment b/c it's not as easy as you think to shop your book around unless it's got a high sharpe ratio and you have a multi-year track record

ETF arbitrage, I suppose.

 

You're looking at being unemployed because you've done too well at your job? Hmmm, I suppose it's possible, but just as likely that you are actually a huge pain in the ass. Not saying that you are, but both avenues seem plausible.

If upon reflection of yourself at work you have to go "but... but" to justify a few things, chances are it may be more than just your returns that are being evaluated.

 

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