Trading Competitions - Are they for real? | Forex Factory

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Trading Competitions - Are they for real?

  • #1
  • First Post: May 28, 2012 6:57pm May 28, 2012 6:57pm
Hi all,

I am sure from time to time, you have come across trading competitions where the winners make anywhere from 500 - 1000% in forex in a month. The classic one is FXCM.

http://forexforums.dailyfx.com/king-...-22nd-may.html

With this kind of returns, also comes a very high risk and leverage.

What's your take?
  • #2
  • May 28, 2012 8:52pm May 28, 2012 8:52pm
Many of the traders use "tournament style" strategies in which they will max out leverage and go for a home run early on.

In fact, if a tournament doesn't specifically have rules designed to eliminate this (say, by disqualifying anyone who risks more than 10% of their account on an unleveraged basis), or unless they only allow real money accounts (and probably a sum of a $500 or $1000 minimum), then the results you will see are wildly and completely unrealistic.

For the most part, trading tournaments that don't require you to use your actual account are in many ways "rigged" to reward reckless trading.

The opposite of career building trading.

X
  • #3
  • May 29, 2012 12:08am May 29, 2012 12:08am
Quoting forextraderx
Many of the traders use "tournament style" strategies in which they will max out leverage and go for a home run early on.

In fact, if a tournament doesn't specifically have rules designed to eliminate this (say, by disqualifying anyone who risks more than 10% of their account on an unleveraged basis), or unless they only allow real money accounts (and probably a sum of a $500 or $1000 minimum), then the results you will see are wildly and completely unrealistic.

For the most part, trading tournaments that don't require you to use your actual...
Definitely reckless and not sustainable.
But 1000% in a month... Humanly possible??
  • #4
  • May 29, 2012 12:45am May 29, 2012 12:45am
Quoting nathaniel
Definitely reckless and not sustainable.
But 1000% in a month... Humanly possible??
Abso'f'ing'lutely dude.

Pick a spot, set a 10 pip stop. leverage to the max. hold it for 200 pips.

Keep scaling in every 20 pips at max leverage... it's very easy...to do once every 100 trades.

THere is a thread on here that's a challenge to see who can run up any given sum 10,000%

so far, ONE guy did it... but he did it in only 6 days. and from what I can tell, he REALLY REALLY knows how to trade. Excellent entries, and pushed to the max. He had a verified account here...so there's a 99.99% chance it's NOT bogus.

Really mind blowing. To that guy... good f'ing job dude.

So ya... 1000% is totally doable... 10K% in a 6 days. that's the best i've ever seen. and with real money too!

X

P.S. search for the thread...no idea what to tell u to look for...but it's here. maybe someone will link it.
  • #5
  • May 29, 2012 12:49am May 29, 2012 12:49am
These competitions are played with max leverage. That's the way that game is played. If you're conservative you can not win, if you go all-in... you have nothing to lose.

It's possible to make 1000% quickly.... just look at the "100 Fold" thread here at FF. Once in a [great] while you can get lucky, if you're lucky.

Even if these competitions were with real money, there would still need to be rules to prevent over-leveraging, else it is just the same thing anyway. ($500 bucks to one person isn't the same as $500 is to another). It has been discussed here before that the best kind of competition would involve risk-based evaluation of performance. Where high returns would be disqualified if there was excessive risk.

However, evaluating each individuals performance would become very difficult because there are many different kinds of traders. I believe the discussion evolved to the point where there would actually need to be "judges" to evaluate and choose the "best" low risk performance.

That would be very difficult to do because, as I said, there are just too many different styles of traders.

If you did want to attempt high percent returns with a live account, I don't see anything wrong with the fifty dollar attempts such as are being done in the 100-Fold thread. (I should have said that differently, because I actually do see a lot of things wrong with it, and I'm sure that many would say that practicing such an incorrect trading style is like practicing air-guitar to ready yourself for Madison Square Garden).

Bottom line is.... those contests are just a contest to see who can sustain a lucky streak to the end of the month. There certainly needs to be some skill involved, because I don't believe that you are likely to win those contests on "100% pure luck".

But if one wants to learn to be a professional trader, there are other places to do your learning.

Demo trading does have it's merits and the contests probably do as well.... I just can't believe the number of people who start begging the winner to trade their retirement fund for them. LOL
  • #6
  • May 29, 2012 1:45am May 29, 2012 1:45am
Quoting Price
These competitions are played with max leverage. That's the way that game is played. If you're conservative you can not win, if you go all-in... you have nothing to lose.

It's possible to make 1000% quickly.... just look at the "100 Fold" thread here at FF. Once in a [great] while you can get lucky, if you're lucky.

Even if these competitions were with real money, there would still need to be rules to prevent over-leveraging, else it is just the same thing anyway. ($500 bucks to one person isn't the same as $500 is to another). It has been...
Haha, love the analogy... like practicing air-guitar to get ready for Madison Square Garden. LOL
  • #7
  • May 29, 2012 2:06am May 29, 2012 2:06am
Complete cowboy business, these competitions are for publicity and signing up new accounts under a false premonition and dream. It's working if it gets discussion like this started, that's why they have been continuing on for years.

Family offices hire professionals to maintain growth at 20-30% year, after year with minimized risk. I guess they should have been recruiting from these on-line competitions where a guy does that in a day, if you catch my drift.
  • #8
  • May 31, 2012 1:47am May 31, 2012 1:47am
i discovered that when the brokers offer cool price rewards for competition winners,the contestants tends to be serious at times and devote time and strategies to make sure they make profit,in the last fbs demo 999 competition,the winner multiplied his capital by over 3000%,thats over 30times the initial capital..it was demo trading competition anyways

i believe if this strategies could be couple with great money management,the sky is the limit.
  • #9
  • May 31, 2012 2:06am May 31, 2012 2:06am
Quoting pclick2010
i discovered that when the brokers offer cool price rewards for competition winners,the contestants tends to be serious at times and devote time and strategies to make sure they make profit,in the last fbs demo 999 competition,the winner multiplied his capital by over 3000%,thats over 30times the initial capital..it was demo trading competition anyways

i believe if this strategies could be couple with great money management,the sky is the limit.
I find that the bigger the rewards, the more you find traders who are shooting for the moon, overleveraging to the hilt, and in general taking actions as a trader that they would never take should they be in an account they had to profit from for a living...

they may have a good entry point using a strategy.... but that is likley all that they have in such competitions.

X
  • #10
  • May 31, 2012 2:11am May 31, 2012 2:11am
Quoting forextraderx
I find that the bigger the rewards, the more you find traders who are shooting for the moon, overleveraging to the hilt, and in general taking actions as a trader that they would never take should they be in an account they had to profit from for a living...

they may have a good entry point using a strategy.... but that is likley all that they have in such competitions.

X
the best I was able to do was $600 to $3000 in 1 week but yes this is a very risky way to trade I used the 15M TF for trend and enter on the M5 with high leverage and tight stops
"Your Best trade is a loss with minimum risk"
  • #11
  • Last Post: May 31, 2012 2:56am May 31, 2012 2:56am
Quoting Forexbiz
the best I was able to do was $600 to $3000 in 1 week but yes this is a very risky way to trade I used the 15M TF for trend and enter on the M5 with high leverage and tight stops

600 to 3000 in a week..that was something huh! the best i've done is turn $170 to $1000 in month..my best live trading record ever!,but like you said,its a risky way to trade,that's why i always feel that an excellent trading system is just 40% of a trader's requirement,money management is 60%..it determines the overall success of your trading career..

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