Most traders fail, so the only way that I could see this working without doing a traditional prop approach, would be if the firm partnered with a B-book broker that agreed to pay out 100% of whatever profits the broker gains from trading against the firm's traders (so that the firm could not lose their own money when bad traders fail), and then the firm paying the broker 100% of whatever profits that the broker has to pay out to the few, successful traders (so that the broker does not lose money).
This would likely require an insurance fund that is placed in escrow to protect the broker. This would require a great deal of up-front capital by the firm, assuming that any sane broker would even agree to this.
This would ensure that the firm only pays out of pocket when good traders come through, at which point, those traders would eventually be A-booked so that the firm no longer loses money with them. Meanwhile, the bulk of the bad traders would generate profit for the firm as the broker pays out whatever profits are earned from B-booking them.
I really cannot see this ever happening. I do not know why a broker would agree to this. I do not even know if any of this would even be possible. This would essentially allow the firm to act as a middle-man broker without actually being a broker, while also letting the actual broker do all of the work while letting you piggy-back off of their efforts.
Maybe I am wrong.
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