Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
Thought you may have come up with an amazing cunning plan to some how show your fills from S5 on Ninja
Thanks Index
" I will follow my rules, I will take my stops, I will be disciplined and i will work with the market....NOT AGAINST IT! Professional mind control is the key"
Do I have this right? If you wind up getting an account funded by TST, you absorb 100% of the losses below the initial balance and they take anywhere from 20-40% of your profits? Since they are at 0% risk from anyone's trading failure, capital from newbies would be secured ahead of trading a funded account. So they cut you off when you blow out that secured capital.
[Edited: I DO have the above wrong. The capital partner assumes some risk but the max exposure to their risk is no greater than what you would normally be willing to bear on your own, right?]
If you have 25-50K of trading capital and enough money to live off of for 12 mos, why would you ever need them in the first place? You can make a living AND keep 100% of your profits.
Given you're a positive expectancy trader to begin with, even if you had only 15-20K of startup capital with a broker who has $500-$1000 margin per ES contract, you could start out with, say, 3 ES contracts to get your confidence up and then get more aggressive after the first 10K profit.
Another thing to consider is that they give you a 1099. On their taxes, they get to claim the Section 1256 60/40 tax advantage. On your taxes, you pay Social Security and Medicare tax plus the standard rate on your 1099 salary. When you are an individual investor, you get the 60/40 tax advantage and don't have to pay SS or Medicare tax on your net gains from trading Section 1256 contracts. Your employment can be "unemployed" or "retired", doesn't matter because you won't (that is, you don't) claim business expenses to set yourself up as self-employed. You pay your fair share of taxes by the Section 1256 rule and trading expenses are negligible relative to that kind of advantage (save 7K-9K in taxes vs. regular rate per 100K of net gains + what you didn't have to pay in SS and Medicare)
If I were down to my last 20K of trading capital and still had 12 mos of savings to live off of, well, I would go for the 100% profit retention and find a job if that got blown out. The down side in both scenarios is the same. The up side is better on your own. With all of this, it's a given that a positive edge exists. You just have to manage those contracts to survive the necessary draw-down periods.
My apologies. I see where I misread that page. I edited the original post with an insert after the incorrect part. There is risk on their side. Looks very minimal though vs their upside potential.
Thanks for the comments, I always appreciate your input.
Trading for TST is a total "long call option" payout for me. The risk is limited to the $400 bucks it costs to sign up. Once funded, I would have zero downside risk personally; the equity partners assume 100% downside risk. I would simply be entitled to (initially) 60% of the upside.
Anyone care to start making 60% of a fresh 150k account?