“Although I’ve witnessed uncountable demo contests the
world over, these are the most impressive results I’ve ever seen, despite the
vagaries of the markets.” – Analyst75
Honestly, my
plan for this week was to post an article about Alan Howard, a self-made
billionaire trader, in our Master Traders series. Nonetheless, I’d to change my
mind and post what you’re reading today, as a result of outstanding results of
a just concluded demo contest.
I don’t like
to sound like promoting anyone or any firm, but doubting Thomases need to see
this. Perhaps they’d admit that trading success is attainable.
A Trading Firm Announces a Demo
Contest
In early
March 2016, I unexpectedly came across this announcement:
“Get ready to
take part in something new... something different! The starting clock is
counting down to the first “(company name withheld)” trading competition of
2016... and the prizes are huge!
This is a
demo-trading contest because we wanted anyone and everyone to take part... we
just decided to make things more interesting by offering bigger prizes than
most live-trading competitions. So... if you have ever thought of taking part
in a trading competition, then this is the competition to take part in!
Competition
entrants will go head-to-head - each trading a $2,500 micro account with 1:400
leverage. There are no restrictions - competitors are free to trade any
strategy... whether manual, automated, or both.
Come early,
or come late - you will be able to dive in and join the fun right up until
April 15th.”
The
competition started in March 13, 2016 and ended on the day mentioned in the
preceding paragraph. There are no trading/withdrawal restrictions on prize
monies.
When a Broker Doesn’t Impose
Restrictions
Let’s be
frank here, the kind of broker you use really matters in your trading success.
It’s one of the big factors in your profitability as a trader. I hate FIFO
rules. I hate restrictions on strategies, like hedging, automation, etc.
I like a
broker that doesn’t interfere with trading strategies and styles, no matter
what they’re. I like brokers that don’t trade against me or manipulate my
traders. I like brokers that don’t impose restrictions on me. Let me use any
trading styles I like and be responsible for the outcome. Professional traders thrive when they’re
uninhibited by unfair restrictions. I saw the most impressive results in my
life because a trading firm doesn’t impose any restrictions on
traders/competitors.
As far as the
trading firm which organized the contest is concerned, their demo accounts are
almost similar to live accounts. You receive transactions alerts into your
inbox as if you were using live accounts.
The Number One Contestant – A Mad
Trader
The contest
started, and at the end of the first week, the number one guy had turned 2,500
USD to $63,000 USD. By Thursday of the second week of the contest duration, his
equity stood at 106,000 USD. On the following day (Friday), his equity reached
109,000 USD; but he suffered a drawdown that day. His equity dropped to 73,000
USD.
I told my
boss in the office: “This guy is an exceptionally good trader. Even if the
contest ends now, he’s already made an impressive result by turning 2,500 USD
to 73,000 USD just in two weeks.”
My boss
nodded in agreement.
In the third
week of the contest, the top guy raised his equity from 73,000 USD to 79,000
USD. At the end of the third week, the equity stood at 136,000 USD. In the last
week, he raised the equity to 666,000 USD.
On April 14,
in the afternoon, I showed the result to my boss. The guy’s equity was already
695,000 USD. Three hours later, I was visiting a friend of mine when I checked
the contest results, the guy’s equity was then 1,080,000 USD!
I called my
boss on phone to inform him. He was too surprised. Early on Friday – the day
the contest was to finish – the guy’s equity had been turned to 1,350,000 USD.
At the end of the contest, his closed balance was 1,433,480 USD.
Here is more
info about the guy’s results:
Contestant
name: A.D.
Position: 1st
Opening
balance: 2,500 USD
Volume
traded: 34,230.80 lots
Number of
trades: 316 trades
Final balance
1,433,480 USD
Gains: 57,239.20%
Contest
duration: 4 weeks
Prize money:
5,000 USD
The
contestant who came second turned 2,500 USD into 741,365 (29,554.60%). The
contestant who came third turned 2,500 USD into 713,076 (28,423.04%). All
within 4 weeks. I’ll not mention clean results of many other traders in that
contest.
Is This Realistic?
Another popular broker in Europe just finished their demo contest
on April 15, 2016; the duration was like that of demo contest detailed here and the person
taking the highest position made only 331.78% profits in 4 weeks (though nearly
2500 people registered for the contest).
I can tell you that 331.78% in 4 weeks is an impressive
return. But who can argue with 57,239.20% in 4 weeks? It means you could’ve
gained at least 57,200 USD in 4 weeks if you invested only 100 USD and got that
kind of results in terms of percentage!
Is this realistic? Yes and No.
Yes, because the results are true, and because the trading
firm involved allows trading conditions on virtual accounts to be exactly
similar to those of live accounts.
No, because contestants used excessive leveraging, which
might be too pernicious when trading on real accounts. But I also believe that
they would’ve made impressively decent profits even when they risked 1% per
trade, using risk control features, and compounding their accounts for one year.
As a professional trader myself, I personally witnessed the
vagaries of the markets during the whole contest duration. I witnessed
fake-outs, strong trending movements, short-squeezes, false breakouts,
reversals, traps, equilibrium phases, random volatility etc. Regardless of
these random and unpredictable behavior of the markets, those awesome traders
made astounding profits.
Who Is That Mad
Genius?
As I said earlier, I’m not advertising anything here. I
don’t know the mad genius in person, but I’m a witness to his gargantuan
results. I just wanted readers to know that there are talented traders on this
planet. I suspect those traders used automated or semi-automated strategies.
The firm that organized the contest might try to interview
the top trader or the top three or the top five. I don’t know whether this
would be done, but I can guarantee you that if the top trader (that mad guy) is
interviewed, the interview would be included in one of my future articles; the
Master Traders series.
Conclusion: There
are many, many traders who can speculate successfully. If you’re one of those
doubting Thomases who think success is impossible in the markets, this article
was written to prove you wrong. Can you now see that, while there are losing
traders, there are also hugely successful traders? Do you want to be like them?
You can be like them if you really want to!
To be candid, I’d no intention of using any link to prove my
point, owing to the fact that I don’t want to appear like promoting
anything. On the other side, if I don’t
show any links, readers who easily come in and say: “You know that blogger/forumer
is a smart liar.” I don’t want to claim something that got no proof. It’s sad that many readers wouldn’t believe
me if I didn’t make any reference. Nevertheless, if you were curious enough,
you might want to see the proof here: www.tallinex.com/leaderboard
As from next week, I’ll resume posting my usual articles. This article is ended with the quote
below:
“People lose money for various reasons, mostly they are
not ready to compete against the best, it is like a five year old playing
basketball against a seven footer, people think it is a even playing field, it
is not, MOST are BAIT and the few are WHALES, Whale doesn't have to attack any
of the bait, whale just opens his mouth and swims. Some of the brightest people
come to the markets thinking their brain will overcome experience, I certainly
can't bend microwaves, but I know the probabilities of swing distance of ES in
first hour of ES. And there are differences when it comes to bending
microwaves, YOU are working for someone and I work for myself.” –
Handle123 (Source: Elitetrader.com)
Source: www.tallinex.com
What Super Traders
Don’t Want You To Know: Super Traders
Buy and sell Neteller here; get funded quickly: www.ituglobalfx.com.ng
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