Monday, October 13, 2008

The RO Report, "Insane Rip" Edition

Truly, these are wonderful times to be a proprietary trader. How much longer will it last? Your guess is as good as mine.

I mean, what's gonna happen tomorrow? Do we drop 500 points to consolidate?

Volume today, compared to Friday's level, was simply lame. We traded just over half the volume we traded on Friday... to me, that means shorts covered, and some longs entered the market, but for a 936 rip on the Dow, I'm left a little unsettled.

I haven't felt so neutral on the market since I started this blog. Amidst all this volatility, that feels odd.

Anyway, I just wanted to throw a few words out here about the RO. What it is, and why we kick so much ass.

When I started this blog a year and half ago, I was a lonely trader, locked in the confines of a spare bedroom in my house, trading for a mean overlord who didn't appreciate my consistency or work ethic. I needed some trading friends. So I started this blog, and quickly roped a few bloggers into reporting their daily P&L each day.

I called it, the Virtual Office. It was very gay, however, I made some good friends doing it.

Anyway, last December, after a string of 5 or 6 bad days, my old company, run by ogres and shitheads, called me and told me to send them money. My account wasn't close to being negative, and I had been with them for years, consistently making them money. So I took this request for more capital as an affront and told them to fuck off. They told me I could leave if that's how I felt. So I split.

Coincidentally, I had re-ignited a friendship that I had long thought dead. As it happens, this friend also ran a trading company, and so I joined his office in January of 2008.

At the time, it felt awful. However, as so often happens in life, events that you at first judge to be negatives, can turn out to be positives.

The vibe in the office was so solid, with great chemistry among the traders. They shared ideas, and they shared P&Ls. Soon after I joined, I decided to scrap the VO. I mean, I now had traders who played my exact game, sharing their P&Ls. I quickly lost interest in seeing how I compared to swing traders or futures traders. I just wanted to improve my performance relative to the guys who were trading what I traded everyday... stocks.

So the RO ("real office," as opposed to the original "virtual" office) that I report each day represents the top 5 and bottom 5 traders in my actual proprietary trading office. They are gross figures and they are real.

Okay, I hope that explains it. Let's get to the figures.

Out of 27 traders today, 23 finished gross positive, or 85%. 21 traders finished up over $1,000 gross. A record as far as breadth of wealth in the office goes... I was #11 of 27, nicely positive.

The Bosses demolished the Manservants today, so they get top billing.

Here are today's Bosses:

"Lucky Pierre" - Trader A, $93,496 on 798k shares traded.

2. Trader B, $87,744 on 1 million shares traded.
3. Trader F, $55,583 on 316k shares traded.
4. Trader D, $49,273 on 682k shares traded.
5. Trader Z, $32,509 on 430k shares traded.

And the Manservants:

"Chambermaid" - Trader K, -$4,417 on 274k shares traded.

2. Trader 3, -$481 on 9,600 shares traded.
3. Trader X, -$460 on 23,000 shares traded.
4. Trader Q, -$43 on 20,400 shares traded.
5. Trader 7, $308 on 2,600 shares traded.


Marvinmee said...

I noticed that allot of the traders in the RO trade a ton of shares. Is this because they do a ton of quick trades or are they just trading huge sizes??

Teddy DaRussian said...

yo looking for a prop firm - worked at broadway/schonfeld for a long time - mssg me at tkaplun at yahoo

LK said...

I need to get off my ass and find some traders in my area. That's a great idea you've got going there.


Dinosaur Trader said...


A little of both... it's really blossomed these last few months, but no one is shocked anymore when a couple of the guys are holding 5-10k of a stock. Also, guys do get in and out of positions a lot.

@teddy, email me. It's in my profile.

@LK, if you're a new trader, being in an office helps enormously.


jtrimbe said...

I've been checking your blog for a while and comparing the RO report to my daily PL and was wondering where your office is located. How big is your offic? How much are your trading costs? Also what stocks are some of the top guys in? I saw your post about cme and was wondering what else people are trading. Are they swinging huge spy positions or other high flyers like goog, bidu, ma, gs?