How much in P&L is a VP expected to make at a bank?

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This isn’t getting any replies so I’ll take a stab at it - I have some experience in prop shops/non-bank market makers.

PnL definitely needed to at least cover any tech/operational outlay. If you had a strategy that needed tons of borrow, swap financing, expensive data feeds, colocation at exchange etc., you had to pay for it out of your own PnL, and if you couldn’t even do that then it was a non starter.

On top of that, we weren’t too picky about PnL but more so about the combination of Sharpe/drawdown/PnL. I’ve seen some high Sharpe strategies that didn’t have a huge dollar amount of PnL, but that we kept around because they were reliable. Alternatively I’ve seen some strategies that have been cut after a couple of weeks of drawdown and low short-term SR.

I would say not to focus on the specific dollar amount or even percentage, and look at the bigger picture. Also look at PnL made by other strategies in the same geographic region, asset class, holding periods, and use that as a benchmark.

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