Maverick Trading Review – A Look At This Prop Trading Firm

Maverick Trading

Maverick Trading is a private equity trading firm providing education, funding and capital sharing for traders. Candidates apply to Maverick to undergo the training program to qualify for funding (capital sharing) if they complete the qualification program (similar to TopStep Trader). Traders who pass will need to make a risk deposit. Maverick with then add additional capital to bolster the buying power and leverage of the trader’s account. Net profits above the watermark are subject to a split which may range anywhere from 70/30 (Trader/Maverick) and up. Traders are limited in losses to their risk deposit amount.   

Headquartered out of Utah, Maverick Trading is one of the oldest trader education and proprietary trading firms still in existence. Launched by 1997, they built a proven market neutral trading methodology of trading that enables traders to profit off up or down markets. They prefer options trading due to leverage and limited downside and discourage high-frequency trading. The trading style is swing and short-term trading with hold times ranging from hours to several months. The training and risk management program has been effective enough to last the test of time. They have an above 90% retention rate and most traders have a three-year stay. Maverick provides extensive support, mentoring and risk management throughout the training and trading life cycle.

Maverick Trading Application Process

Maverick regularly advertise for new traders to join the firm throughout popular online job boards and social media sites. The application process starts with interested traders applying to Maverick Trading to join the firm. Recruiters evaluate the applicant’s experience and history to determine if the candidate fits their model and the level of risk they would incur. Maverick mentioned they only accept 3-to-4% of applicants. Based on the interview, candidates may be required to pay a fee to join the training program. The fees can be around $6,000 but varies based on the evaluation. Highly successful and experienced traders with prior prop trading track records may be allowed to bypass the training program all together.   

Training and Qualification Program

All candidates are required to complete the Maverick Qualification program. While more experienced candidates may complete the program quicker, the goal is not speed but thoroughness. This is to get everyone on the same page with the Maverick trading methodology. Pace is subjective to the candidate, whether it takes two-months or six-months for a part-time trader. A minimum of two-month track record performed on a demo trading simulator is required as core metric to gauge the capabilities of the candidate. Candidates also undergo many tests and assignments like creating an introspective trading plan and self-evaluations. Reviews are performed every two-months including the demo account track record to determine if candidate passes qualification.

Capital Sharing Program

Candidates who pass qualification become accepted into the capital sharing program. Maverick encourages traders to make a risk deposit. Maverick will add access to additional capital to improve the buying power and leverage to the trader’s account. Maverick’s risk managers monitor all live trading accounts to make sure they stay within risk parameters. Maverick has a strict set of criteria on maximum loss limits and weekly targets and payout schedules.

The program presents a nice structured roadmap for progression from Associate Level 1 to Master and ultimately Elite Trader Level 6 where projected annual earnings can reach into the six-figure range. As traders progress to higher levels, they receive a higher cut of the profit splits. Maverick doesn’t have mark-ups on commissions to emphasize the core focus on profit splits and encourage collaboration. However, there is a monthly fee throughout the complete process from training to trading of $200-per month. This includes risk monitoring, mentoring, access to lessons and webinars as well as live trading alerts in their members-only chatroom.

Risk Deposits and Management

Risk deposits are required with traders that get accepted into the firm. This enables traders to have skin in the game, keeping them from reckless and impulsive behavior. The minimal risk deposit to consider is $5,000 on up. This gives traders ‘breathing’ room, especially with the max loss provisions of the Capital Sharing Program. Risk deposit and trader level will determine the max position size limits to keep traders from blowing out accounts from the get-go. Maverick continues to encourage and fortify good habits in a structured manner throughout the life of the trader’s tenure at the firm. Risk managers are always watching the trader accounts like an “eye in the sky” at a casino. This keeps traders on their toes and helps galvanize discipline.

Maverick Trade Simulator

Maverick’s customized trading simulator has many features to help traders hone skills and adapt to market volatility under different conditions. Traders are encouraged to completely plan out all trades with triggers, targets and stops ahead of time to keep things mechanical, not emotional or impulsive.

Risk reward ledgers are embedded into the platform, so traders can monitor their performance and find leaks in their strategy and management. To further ensure agility and flexibility training, the simulator enables traders to run different scenarios by applying different market conditions. It reminds me of the X-men ‘Danger Room’ placing them in different scenarios. The Maverick simulator runs the same way as traders can test their strategies in various market conditions ranging from Sideways Markets to Market Crash or Correction.

Trading Alerts Chatroom

Since 90% of Maverick’s traders operate remotely, the member chatroom is a bountiful resource for trading alerts, ideas and camaraderie. One of the key reasons for every trader going through the trading program is to ensure they completely understand the lingo and methodology to take full advantage of the chatroom. Ideas flow freely and a team environment flows through the screens. It’s nice to stay connected to the staff members, who all trade and build new relationships with other traders.

The chat room is not as active as rooms like Investors Underground and Warrior Trading.

Trader Support

Maverick is very thorough in supporting their traders as they advance from applicants to Elite Trader. The staff is composed of traders that understand the highs and low of the game. Questions are answered in a no-nonsense straight up manner. The mentors are approachable and embody the nurturing spirit of the community which help to enhance the training.

What Type of Trader Maverick Trading is Best For

Maverick Trading encourages traders of all skill levels to apply. According to Maverick, the ideal candidate must be trainable, willing to develop discipline, have desire to invest the time and effort and have a collegial attitude to share and learn. The comprehensive training and on-going support is impressive.

Pros

• Full comprehensive structured training and support for pros and newbies
• Funded traders receive higher buying power and leverage
• Flexible trading simulator with trading journal tools
• Risk managers monitor traders to avoid reckless trading
• Operating for over two-decades
• Solid and approachable trader support
• Remote and part-time trader-friendly platform and curriculum

Cons

• Risk deposit can be prohibitive
• Training program fee can be expensive