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Mysticforex

Traders Laboratory Forex Trading Contest!

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No, You can't have more than a total of 5% drawdown.

 

That 5% rule would have knocked you out early in the one contest in which you participated.

 

attachment.php?attachmentid=30431&stc=1&d=1344464955

 

Looking at the record, it would seem that your contest could become rather sparse if you bounce everyone who hits a 5% drawdown.

5aa71128d6a53_TLContest1.JPG.005e639c562717facc99df0dfcb5ec9c.JPG

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That 5% rule would have knocked you out early in the one contest in which you participated

 

Looking at the record, it would seem that your contest could become rather sparse if you bounce everyone who hits a 5% drawdown.

The rule does seem harsh, OT, but the upside is ... it will encourage traders to tighten up their entries and trade management.

 

The down side? It will encourage traders to focus more on intra-day setups and push towards over-trading perhaps.

 

Personally I find 5% DD claustrophobic, but I am participating to gain experience under these conditions.

My TF is a bit longer than intra-day.

 

I hope the rules might be adjusted to encompass those like myself.

 

My thoughts would be that DD should be left to the trader's discretion, or raised to 20% (arbitrary figure).

My reasoning is that if a trader allows the trade to bomb (to the extent of 20%) he is either confident of his direction,

to make it back up, or he will find it difficult to regain that lost capital in subsequent trades.

 

Under competitions held over 25 trading days (+/-) it is more probable that a trader would be more astute with margins.

 

My thoughts: Stretch or abandon the DD limitation.

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That 5% rule would have knocked you out early in the one contest in which you participated.

 

attachment.php?attachmentid=30431&stc=1&d=1344464955

 

Looking at the record, it would seem that your contest could become rather sparse if you bounce everyone who hits a 5% drawdown.

 

 

It's open for debate. Chime in folks for what you would like...

5% Drawdown rule or not.

 

 

BTW good to see you again.

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How are we going setting up our trading accounts?

 

We have 24 days left in which to establish our Oanda accounts, and become used to executing trades with it.

 

Anyone having problems can ask here for assistance.

 

I don't have an Oanda account yet and haven't used them before ... will a demo account work?

 

thx

MMS

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I don't have an Oanda account yet and haven't used them before ... will a demo account work?

 

thx

MMS

 

Yes. The contest will be with Demo accts.

 

We will be using the FxTrade platforms which is web based and not a download. So don't bother D/Ling the MT4.

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Anyone needing help registering a demo account, or registering for the contest - may pm me, or ask here. The steps can be posted here if needed.

 

Can be a bit daunting the first time through it.

 

Cheers

 

Ingot

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It's open for debate. Chime in folks for what you would like...

5% Drawdown rule or not.

 

 

BTW good to see you again.

 

NOT please.:cool: for the drawdown rule. It would be better to introduce some type of technique that would rate the volatility of the % gains/lost, such as a risk-adjusted rate of return. It took the standard deviation of the change in account balance from day to day and divided that into the gross rate of return to give a more realistic idea of risk to reward rate of return.

 

It still allowed people to trade however they wanted, but gives equal footing to the aggressive and conservative trading strategies.

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Thanks Mystic ...

 

Hmmm ... I'm in since last week ... should come up in a day or so.

 

The delay in appearing on the list doesn't bother me - but it does highlight the need for prompt action:

 

1) Set up a DEMO a/c with Oanda, and begin practicing with it.

 

2) Get that Demo a/c number registered at the contest link that has been set up by Mystic Forex. The reason: to avoid people missing out because of the processing delays at Oanda's end.

 

Setting up the demo a/c takes just minutes, and you will be allocated an a/c number.

 

The next step is to get onto the contest link, and register your account number ... and you're done.

 

Anyone having difficulties?

 

21 days left now before the starting pistol fires!

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We are getting there slowly, but I have to say this is an exasperating business!

 

We have 10 trading days to go, give or take a day. Time is beginning to run short to get entries in.

 

I am thinking we must have fouled up somewhere ... maybe forex traders need the incentive of a prize in order to participate?

Olympic_Gold_Medal.jpg.22261c580267974e0a335297c368188f.jpg

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We are getting there slowly, but I have to say this is an exasperating business!

 

We have 10 trading days to go, give or take a day. Time is beginning to run short to get entries in.

 

I am thinking we must have fouled up somewhere ... maybe forex traders need the incentive of a prize in order to participate?

 

You are not as well known as MyFxBook, Automated Trading Championship, Varengold Bank, mt4i, or other platforms that hold forex contest regularly. And non-metatrader contests are much less likely to have followers as metatrader contests.

 

Announcing it on TL's homepage or making it a sticky somewhere. Maybe a thread sub-folder under 'Announcements' titled 'Trading Contests' would garner more dedicated attention.

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You are not as well known as MyFxBook, Automated Trading Championship,

Varengold Bank, mt4i, or other platforms that hold forex contest regularly. And

non-metatrader contests are much less likely to have followers as metatrader

contests.

 

Announcing it on TL's homepage or making it a sticky somewhere. Maybe a thread

sub-folder under 'Announcements' titled 'Trading Contests' would garner more

dedicated attention.

True, 4EverMaAT ... we are not as well known, but as a quality niche forum we do

have some Forex threads with quite good followings and discussions going on.

 

TL has 77,400+ members, many of whom "lurk" and if the number of views for some

threads (200+ posts with between 5,000 and 21,000 views) is any indication, there is

enough of a following on TL to scrape up 50 people (at a guess) who could be either

following or participating.

 

That's why I bother - I just think active participation in a very small contest, is a great

way to encourage a "personal best" for new and experienced traders alike.

 

I am the last person you'd want to follow or learn from, but I hang in there, and by

encouraging others, I am encouraging myself.

 

I think the size of TL is quite sufficient to provide the numbers, and I am not really

interested in perfection per se. Rather, a contest can assist to promote focus and

commitment within a trader, which can then be applied to advantage in improving live

trading.

 

How are we going setting up our trading accounts?

 

We have 24 days left in which to establish our Oanda accounts, and become used to

executing trades with it.

 

Anyone having problems can ask here for assistance.

 

Also, more vacancies are waiting to be filled for the contest. If I am going to come last

in this thing, I want it known that it took a lot of other traders to beat me!:cool:

 

1. Ingot54

2. PWP

3. Youri

4. Obsidian

5. Xparm

6. MP21

7. UWCFX

8. Kuokam

9. Mystic Forex

10.Nicoacademia

11. MadMarketScientist

12. ForexTraderX

13. Nviet

14.

15.

16.

17

18. ..................

 

Those 24 days have now shrunk to 10 days remaining before the start of September trading.

 

And the list of 13 nominated participants has (if I haven't missed anyone) produced 5 entries,

as at 15th August.

 

I am expecting a couple more entries yet. Maybe some of those who were deterred by the

5% rule for draw down, might now join, since that stumbling block has been removed.

 

Regardless of the final acceptances, it only takes two to have a contest, and it is

gratifying to see at least 5 people having a go.

 

btw - the contest is open for any instrument traded on Oanda, so it is not limited to Forex alone.

 

I like your idea of having it promoted on the home page ... it has already featured there once.

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must say the OANDA tools are pretty awesome. :)

i think signing up for the comp and getting the chance to see their tools on the fxtrade platform was worth it.

 

that said i hope not to hit 5% dd too quickly!

 

I think we decided to do away with the 5% drawdown rule.

So, no draw down rule.

Highest % gain at the end of the contest wins.

And, very important. DO NOT change your Balance after the contest starts, or during the contest. It screws everything up.

Good Luck!

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I think we decided to do away with the 5% drawdown rule.

So, no draw down rule.

Highest % gain at the end of the contest wins.

And, very important. DO NOT change your Balance after the contest starts, or during the contest. It screws everything up.

Good Luck!

 

Wait... what??? I was JUST going to sign up now... but no draw down rule allows for very unrealistic leverage amounts, given that the goal is to grow an account as much as possible in 1 month... it's not actually to trade as one would do so in order to do this full time for a business.

 

maybe 5% is too small... I personally think it is. maybe cap it at 10%, or 20%... you know, something that a professional trader or hedge fund manager may experience on a bad month, but taking all restrictions off of this makes it possible to bet it all on a single trade with a tight stop... if that trade runs 200 pips to profit, with taking no more than a 20 pip stop, and a person risked half their account on it... they will be very likely head and shoulders ahead of the rest...

 

but not a single professional trader I know of would ever think to do such a crazy thing.

 

If the goal here is to see in some way who has some genuine trading skills, above and beyond the rest... the contest must enforce some DD restrictions. Otherwise the winner could be a good trader, or he could be the guy that let it all ride on a longshot, and lucked out.

 

again, i thought 5% was too tight, but i was totally willing to work with it, and in fact I believed it was a brilliant restriction because it greatly increased the probability of the better skilled trader coming in first, rather than the more aggressive (and quite possibly lucky) trader coming in first.

 

If there is some sort of restriction, I'll sign up as soon as I see it. If there is just a free for all... i personally will pass.

 

anyone else feel the same way?

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Wait... what??? I was JUST going to sign up now... but no draw down rule allows for very unrealistic leverage amounts, given that the goal is to grow an account as much as possible in 1 month... it's not actually to trade as one would do so in order to do this full time for a business.

 

maybe 5% is too small... I personally think it is. maybe cap it at 10%, or 20%... you know, something that a professional trader or hedge fund manager may experience on a bad month, but taking all restrictions off of this makes it possible to bet it all on a single trade with a tight stop... if that trade runs 200 pips to profit, with taking no more than a 20 pip stop, and a person risked half their account on it... they will be very likely head and shoulders ahead of the rest...

 

but not a single professional trader I know of would ever think to do such a crazy thing.

 

If the goal here is to see in some way who has some genuine trading skills, above and beyond the rest... the contest must enforce some DD restrictions. Otherwise the winner could be a good trader, or he could be the guy that let it all ride on a longshot, and lucked out.

 

again, i thought 5% was too tight, but i was totally willing to work with it, and in fact I believed it was a brilliant restriction because it greatly increased the probability of the better skilled trader coming in first, rather than the more aggressive (and quite possibly lucky) trader coming in first.

 

If there is some sort of restriction, I'll sign up as soon as I see it. If there is just a free for all... i personally will pass.

 

anyone else feel the same way?

 

Deal. 20% it is. anyone object?

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...If the goal here is to see in some way who has some genuine trading skills, above and beyond the rest... the contest must enforce some DD restrictions. Otherwise the winner could be a good trader, or he could be the guy that let it all ride on a longshot, and lucked out...anyone else feel the same way?

 

This contest was run twice in the past. The winner returned over 48% in each contest with max drawdowns of 2.02% and 2.89% respectively. He did this with 10 trades in the first contest and 4 in the second. There was no drawdown restriction in either of the other two contests. It is not necessary.

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This contest was run twice in the past.

 

There was no drawdown restriction in either of the other two contests. It is not necessary.

Agree. It is not necessary.

 

But let's go with this ... those who do not need drawdown do not need to use it.

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This contest was run twice in the past. The winner returned over 48% in each contest with max drawdowns of 2.02% and 2.89% respectively. He did this with 10 trades in the first contest and 4 in the second. There was no drawdown restriction in either of the other two contests. It is not necessary.

 

Well, those are indeed impressive numbers, and nice to see it was done over 14 trades, not just one or 2 lucky home runs... guy will very likely kick my ass then....

 

I don't want to get into the full analysis here, for a variety of reasons, but the fact is that allowing unlimited drawdown can and does increase the likelyhood of someone getting lucky. It opens the door to the possibility that I see absolutly no reason to allow for, unless the contest is to show who can get lucky, vs who can trade well.

 

and I see your side clearly, and for all intents and purposes this is small enough of a contest that there is a sense of camraderie that I feel will set the tone for it and discourage such foolish trading tactics... but again, there is a very slight possibility of undermining the spirit of things if we allow unlimited drawdown, where there is no possibility if it is held with a realistic cap.

 

is this an unnecessary rule? very possibly. but it will be relevent if for some reason someone drops their account by 30%, only to end up 60% on one lucky trade.

 

I'm down with 20% mystic. completely down. I'll get registered before this coming weekend is over. Looking forward to it. personally, I hope the champion shows up and competes... would love to see what he's trading and how he's doing it. that type of thing can be invaluable to all traders IMO... and even more so to veterans....

 

simply because many seasoned traders have enough knowledge to see the "insight" in what a better trader is doing... and such understanding simply isn't possible without a high level of trading proficency in the first place.

 

Anyway, i'm excited. you guys can count me in, i'll be formally signed up in the next day or so.

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