I would not take the bet.
True that a full trader at a director level makes 7 figures. But it takes more than being half decent to get to a director. It is a losing bet to be lured into a position thinking of a prospect after x years, reasons which i explain below:
1) For an mfe candidate, trading is a very different game compared to the program they are enrolled in or they are are set out to do. (I am assuming a sellside trader and not buyside where the lines are more blurred especially for quant funds). As a sellside trader you dont sitdown hours writing a code or coming up with equations to model. You make markets and take stress. (And constantly communicate and try to take fast and smart decisions). Some quanty folks excel in that environment and some dont. I have seen both kinds. You dont know it unless you have experienced first hand. So the prospect above asks to take a bet on an unknown terrritory with the payouts also being stochastic and negatively skewed.
2) i just dont understand the business of taking a paycut for a particular role, unless it is your own startup. I have never heard of a established firm giving a paycut to employees when they move from nyc to say charlotte. A firm offering to pay lower for same role is taking a hedge on its positions and so should you.
3) Trader compensations at junior levels (associate/vp) are an exaggerated myth now. Top IT companies like fb/google/amzn pay as much if you are a decent technologist and ML guy.
Bottomline, in my opinion it is great being a trader or trying to become one but not worth taking a significant paycut or starting career at a much lower pay just so that you get to call yourself a trader.