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People often ask ne the value of trading at a prop firm. \u00a0And there are many value adds that a prop firm brings to a trader, but I want to focus on one powerful performance driver.<\/p>\n
Competition!<\/p>\n
When SMB first formed a JV with the Kershner Trading Group our younger traders were in awe at the PnL numbers of the legacy KTG traders. \u00a0There were\/are some of the best traders on the Street. \u00a0It gave them inspiration to be better. \u00a0It gave them confidence that they could make multiples more of what they were. \u00a0They were exposed to some strategies that they could co-opt with their strong trading skills to add PnL. \u00a0They saw how the best traders were those most tapping into KTG’s competitive advantage, superior trading technology. \u00a0KTG offers the best trader technology on the Street for prop trading. \u00a0Period. \u00a0They watched traders use massive amounts of buying power (20-30m) during special situations to make more.<\/p>\n
They were the young guns looking up at traders they wanted to become.<\/p>\n
3 years later and a very interesting firm dynamic has emerged. \u00a0Our better NYC traders have increased their PnL 10xs. \u00a0Mostly it was because of the daily work they do to improve and firm infrastructure. \u00a0But an important contribution was competition. \u00a0Most interestingly, while at KTG’s firm party in Austin this weekend, some of those legacy KTG 7-figure traders asked me about how our top guys were trading so impressively. \u00a0How are they doing it? <\/i>They were now trying to emulate some of the strategies that were working best in NYC.<\/p>\n
I sat with an exceptional trader and friend, who shared something I had never heard about why to stay at a prop firm. \u00a0He said that KTG invests in training new traders and their development. \u00a0This new blood energized this 7-figure legacy trader to keep improving. \u00a0He doesn’t want to get passed by the guys coming after him in NYC. \u00a0And this has helped him elevate his game.<\/p>\n
The best NYC want to surpass the best Austin traders. \u00a0The Austin traders want to know what the heck those young NYC traders are doing so they can make more. \u00a0But perhaps more importantly, they do not want to get passed.<\/p>\n
When you see a trader at your firm put on 30k shares and you have 10k that gets you thinking. \u00a0Hey I am better than him. \u00a0I have to step up my size. <\/i>\u00a0When you see a trader put up 50k intraday, you say hey I am better than him. <\/i>\u00a0And if you are competitive as most top traders are, you step up your game.<\/p>\n
All of this needs to be done with traders doing more of what they do well and bigger and slowly adding new strategies that show edge. \u00a0But to be pushed, the desire to be the best at the firm, to make the most, fuels the best traders to become better.<\/p>\n
Competition! \u00a0It fuels improved performance.<\/p>\n
*no relevant positions<\/p>\n","protected":false},"excerpt":{"rendered":"