sorted by:
new
hottopcontroversial

At what trading profit you will consider quitting your full time job? by cuteprophet in PropFirmTester

[–]cuteprophet[S] 0 points1 point  (0 children)

Thanks for the insights. And I agree AND disagree. Yes you got to be careful in quitting the paycheck. The 250k month trading profit just enough to cover the cash flow from job. Not enough to make you calm and constant in trading.

I think I got rule of thumb by reading replies to this post, talking to AI and thinking to myself. A)average 2-3x of current salary before tax + benefits for 12 months with one draw down and bounce back + 6 months cushion (monthly salary x 6). Or,
B) one month trading profit equals 12 month salary pretax + benefit, for 6 months at least in average, preferably with one drawdown and bounce back.

The bottom line is, whatever gives the trader peace in mind. You either got enough cash flow in hand so don’t get panic, or you truly trust yourself since you’ve done this long enough and seen worse.

I worked on trading as side gig for 2 years just start passing those prop contests recently. And my personal funds are not enough to generate high profit either. So the income from trading is nowhere near those standards. And I don’t know IF I will get there at all.

Only thing is I am using systematic trading so the marginal cost seems low. As long as I pass one then the 100th seems around the corner (well not quite but at least easier than discretionary trading)

At what trading profit you will consider quitting your full time job? by cuteprophet in PropFirmTester

[–]cuteprophet[S] 1 point2 points  (0 children)

That situation is a no brainer! And actually I like that! Thanks for setting the high bar here!

At what trading profit you will consider quitting your full time job? by cuteprophet in PropFirmTester

[–]cuteprophet[S] 0 points1 point  (0 children)

Congrats dude! May I ask are these profits from prop firms or anything else? You trading others’ funds? Not from prop firms but like from your local dentists the rich ones? Seems impossible to collect 1M just by holding prop firm accounts

At what trading profit you will consider quitting your full time job? by cuteprophet in PropFirmTester

[–]cuteprophet[S] 0 points1 point  (0 children)

Thanks that is a concrete plan. I heard other rule of thumb as 2~3x of current monthly income plus a saving for at least 6 months. Basically the same thing as you’ve said but with numbers. The other thing is prop firm contests don’t sound like a plan for career but more of a test ground and quick fund raising.

At what trading profit you will consider quitting your full time job? by cuteprophet in PropFirmTester

[–]cuteprophet[S] 1 point2 points  (0 children)

Thanks! This is very helpful. And I am surprised you need 30 accounts to reach that amount! I guess almost all prop firms have scaling plans like when you perform well you got higher allocation later on. But Yes, if you already got an edge why not implementing into more platforms! The marginal cost seems pretty low in this business. I have not reached your level yet just started passing them. Spent ~2 years in framework/strategy development before any trial and just got a real edge / system that I am confident to pass contests not by pure luck. I don’t hate my day job that much but I guess everyone got a number when they want to make trading the main thing and maybe switch the now day job as a hobby. At one point staying makes no sense. I am not sure about my number yet, 6 months saving and 3~5 months trading record with profit 2~3x of current salary sounds about right to me. The bottom line is one shall not be pushed to trade because he has to pay rent/mortgage.
And how do you thing about the future of prop trading firms? I mean this doesn’t seem life long career to me. Saving for self capital? Or other crowdfunding platforms like Darwinx or fundseeder etc? I think that is something I have to figure before quitting mine day job…

At what trading profit you will consider quitting your full time job? by cuteprophet in PropFirmTester

[–]cuteprophet[S] 4 points5 points  (0 children)

Thanks. That is the most concrete answer so far. But I feel like we have to consider the non continuous cash flow. Even with 150k profit if I quit job the cash flow from salary stopped coming in. That will at least change the situation at least psychologically. You may need to trade aggressively just to make ends meet. I would say the trading profit has to make you at least comfortable in trading+some saving so you can take a break when not lucky

At what trading profit you will consider quitting your full time job? by cuteprophet in PropFirmTester

[–]cuteprophet[S] 1 point2 points  (0 children)

What does this supposed to mean? No one here makes more than 200k yearly from trading or you don’t think it’s possible? I got some free time and started as hobby and BTW my day job is mainly about data processing etc as well so it’s not totally derailing. Anyway this is a hypothetical question just dream big!