What do winners of investment strategies competitions use? – genxfxtrader
There is no single concrete strategy to ensure the best results in the market. The winners of the competitions often reveal the secrets of their success during interviews. Still, it is very difficult to find a common denominator in their tactics.
In the next chapter, we will get their most popular strategies . Each was successfully used during competitions and has great potential to provide a very high return rate. Some offer better risk management, while others offer a worse management. In some cases, a single wrong decision is sufficient to eliminate us from the competition.
It should be noted thatto become winner of the competition, extensive knowledge is needed. Many participants of such events are the beginning of your journey into the world of the stock market, and these are their first steps in the financial market. It may be hard to believe, but surely still remember your beginnings, when in a couple of days you were able to double your account. It is therefore both in theory and in practice possible. If you are still new to the Forex, it is recommended that you participate in available training. Brokers often conduct meetings or webinars with customers during which labor standards with a platform and market performance are explained. In these formations you will learn the basics about technical and fundamental analysis. Failure to provide customers with such basic tools would be irresponsible for the organizer.
After that kind of introduction, you usually will get guidance on the mechanics and market specifications. Investment during a competition is characterized by unconventional style and is often different from how to proceed under normal conditions, in a real account. So even beginners have a good chance of succeeding. Under these conditions so specific, luck plays a significant role.
Of all the strategies for competitions, the most popular are the pyramidal trading strategy, the “martingale” and all use strategies based on the entire deposit. The latter is not silly though it may seem. Let ‘s be clear: some results of one or two digits will not get a high position or in the daily ranking, or weekly, or overall. All experienced traders know and even their benefit systems are heated for competitions.
In this method, we put everything at stake in our first move. With the owned capital we opened a single maximum position in the chosen instrument and we hope this particular position allows us maximum benefit. However, we all know that this method is very risky and the possibility of being disqualified from the competition and on the first day. The rankings show a very high popularity of this strategy, with a percentage of 200% on regular rates of profitability within the first 24 hours. However, the first filter has very narrow gaps and many can not overcome it . In the last positions of the tables there are many people with results of -80% and -90%. Those are the people who unfortunately chose the wrong direction and opened the maximum number of positions that allowed them to your account. However, this strategy is very simple and often very effective and it may surprise many.
So in what instruments should to focus? When it comes to speculating for a competition, the best are those with the greatest daily variability. In addition, transaction costs, such as the provision, the blocked deposit, are relatively smaller than other values. Another issue is the existence of a strong trend does not make sense to enter into an instrument it happened to be in support to be resistance because such apposition enter only blocks our deposit and does not allow us to join a strong movement. By our observations, we conclude that the best instruments for trading competition are: DAX Index, silver and oil, and currencies like GBP / JPY, GBP / USD and USD / JPY. That’s where you start looking for an interesting market opportunity. Obviously, we should not limit ourselves to these, especially if we find an interesting fit elsewhere. If you’ve already got my eye on an interesting position, the next step is to choose one of two possible routes: either we enter the safest technical configuration (according to our strategy or idea) of these instruments, or wait for the appearance of some key data contributed to this value.
In the second case, we have two possibilities: before publication of the data, we can bet only on the side toward which we believe the graph is inclined (accelerated data deviated from consensus) or wait for a publication and join a movement has already begun. Such operations can give two results. The first: we have chosen the wrong direction. Our track record in the competition is over but we should not feel any regret, since we assume a risk and the result is totally accurate. The second: our benefit. With the highest volume possible, we have managed to achieve a strong movement. Maybe even we are in the leading positions of the standings, either daily or general.
And now that?Well, the competition continues and we should repeat our previous action in another market situation. A series of strong and profitable positions can last long. However, the longer they last, we will be more careful. We recommend rather slow to accelerate. We can not allow a series of say 5 Outstanding shares spoil a great loss. We must bear in mind that, over time, the number of competitors obtaining benefits will be reduced and, therefore, if we maintain a stable and growing profit curve, we will be getting higher and higher positions in the competition. The longer the competition, the lower the need for increased hyperbolic curves. More people end their earnings cycle and lose their place in the competition for it. If we allow ourselves to lose by a single incorrect loss, will share his fate. Of course, with the capital increase, our position also increases, but after reaching a high level, it is not necessary to introduce a maximum possible volume. Obviously, we still take extraordinary risks, but it is no longer necessary to stake everything on one card.
What lies behind this enigmatic name? Here is u n trading method having an accuracy of almost 100%. But before we start using it , we know that the martingales has a “but”. For benefits, we need only (where possible) unlimited resources in our account. Not many people can afford that well, so those based on martingale law generally, systems perishing after a couple of transactions.
This strategy originated in gambling eighteenth century . The easiest way to describe it is by the example of Russian roulette game. We bet on a color and begin with a dollar. We bet on black, but red wins. On the next play, also we bet on the black, but this time we double our bet. Red wins again and lose $ 2. The third time we played for $ 4 and lose again. The fourth time, we play $ 8, so if we win, we win $ 8, having sacrificed so far just 7 (1 + 2 + 4). But if we lose, we make another bet for $ 16 and the next by 32. This shows precisely why we must have deep pockets. One problem with this method ( as well as financial resources) is the series of losses that may occur. It is hard to imagine that only red or black appear only say 15 times in a row, but it is certainly possible. How can we extrapolate this system the currency market in the context of the competition? The rule is simple and can easily be applied as follows.
0.1 open lot in long position (buy) CFD DAX30. We put the earnings limit on the level of 100 points and excess losses also 100 points. When the benefit is achieved, we look for another position. The fun starts when they arrive losses. After reaching excessive losses, we reverse the position, double the initial and also put a limit profits and limit losses. In place of the loss limit, we also invest the position and doubled the size of the order. The game ends when we reach the earnings limit (covering all losses and taking profits) or when we run out of funds in the account. This is definitely a game for those with nerves of steel, because to ask about 30-40 lots, must have certain personal predispositions. People who take out the martingale casino and bring the Forex, you should also take into account a significant difference. Although we can say that a number of the same color at roulette is bad luck, bet on the wrong trend in the market is the market specifications. Before you start using this system in real investment, we must try many times in a demo account.
The martingale is not generally used in routine and manual trading with real accounts . Capital requirements and psychological burden of this technique has made has effectively eliminated the range of most used strategies. However, it is very popular in the EA (Expert Advisors), ie in automatic investment strategies. The volume of capital needed to open a position almost always challenges the use of martingale. The loss is usually quite dramatic and leads to empty the account. Curve capital of these strategies almost always moves upward stable manner until we find the “mother of all losses.”
TRADING STRATEGY PYRAMID
The pyramid trading strategy is one of the types of averaging . Usually, investors average losses (which generally should not be), while the pyramid trading strategy, which is the subject of this section refers to benefits. In general, it is opening more and more new positions, according to the starting with when we are currently at a loss and our path leads directly to empty the accounts. Averaging focuses on undoing the losses when the market turns around. The benefits will come sooner than if we only had an original position.
We not address this issue in depth, since the direction it takes is always wrong and averaging losses always ends quickly . We can use the pyramid trading strategy when we have entered a position that has proved profitable. There are many techniques for using this strategy. It basically boils down to open new positions in an already open and profitable, as this will increase our capital. We can add smaller, equal or larger positions. The key is to control the assets we already have. With the change in our average price, we must also adequately secure the position with a defensive order if our luck was over. Most important is not to allow the pyramid we have built profitable becomes a loss. Our winnings should be ensured. This strategy goes well with instruments high trend, those who have the biggest daily variability. Our pyramid must be built according to current course, since the probability of certain movements is always greater if we go in the direction of the trend. You can build a network orders mechanically joining the profitable position a couple of dozens or hundreds of points (a default value) or it manually according to the technical situation visible in the table. In practice, it is expecting that a recent move and buying is corrected during a key technical support. (eg 38.2% Fibo)
The pyramid trading strategy is not just a strategy for competitions. It can be used successfully also in normal investments. If we ensure our capital and manage risks properly, then nothing stands in the way we use the strategy during normal daily trading. Under the conditions of the competition (if we are to achieve a leadership position), we may have to increase the size of our position, so that the benefits are greater. Obviously, we also need luck. It should be noted that it is precisely the fate that has more influence on our earnings. Although regular investments are the result of a disciplined and consistent trade, the final result of the competition is mostly a matter of luck than skill. The winner may not always agree with this view and can say that their success is due solely to its strategy. We must remember dozens of accounts that were emptied on their way to success. For example, we can combine the strategy of staking everything with the strategy of the pyramid, slightly modifying both. In the next chapter, we ‘ll show how to handle an account well in practice.
Great article, playing key issues that are not addressed and well documented. Congratulations
To me the problem Martingale is every time you start and you lose martingale do until you win, then you get back the bet. You are where you were and you have to start over . 50% of bets generate a martingale. You fuck the commission and one of those martingale you can stay without your cash forever’n’ever. Bad trade.