The TMS Brokers investment competition is over. Which strategies proved to be the most effective?

Behind us 4. edition of the TMS Brokers investment competition. For three weeks, traders competed with each other to trade Forex and CFDs. The best players end up with cash they win. The total prize pool was PLN 14, and the highest rate of return achieved by one of the participants was 500%. It's just that he didn't win the general classification ...

Long-term thinking ...

It is possible to win the Tour de France cycling race without winning any of the 21 stages. It is important to always be in the lead and not lose distance from the best rivals. It was similar in the investment competition on virtual accounts, in which the trader with the nickname Tomas89 turned out to be the best. The winner did not win any of the 3 rounds. Nevertheless, he obtained as much as 90 points. Let us remind you that each round lasted a week. Every Monday, investors began to struggle with an equalized EUR 10 account. Not only that, the leader of the "general classification" kept the proverbial yellow jersey being in the top ten only once (he took 000th place in the first week). In the second stage he was placed 10st. In week 31 he was beyond the top fifty. However, he made very good use of the opportunity to get additional points for referrals to participate in the competition among his friends and thus gained another 3 points.

Focus

The winner of the entire competition was involved only in two markets: the pork market and heating oil NY Harbor, of which 90 percent. transactions were items based on the first mentioned commodity.

Chart: 1 Capital curves of the first three general classification.

The runner-up achieved 86 points, taking twice the place in the top fifty (27. And 17. Place) but also in one of the rounds his result was so weak that he fell to a distant place. Markololo, because this is the nickname of the second-place trader, also willingly urged friends to participate in the competition, which guaranteed him a very good second place and winning in the form of 2000 PLN.

The bronze medalist with 83 points can only regret having induced only one person to the competition. If his activity in this matter were at least as in trading, he would definitely win the general classification. It is worth noting that the trader with the nickname Kamil won the third week of competition (with a rate of return of 132.94%), and in the first he was on good 20. place. He also cannot be successful in the middle stage because he was out of the scoring group.

I competition week - Majestic trader unrivaled

The record holder achieved a return of 140% and thus left the rest of the investors behind. It was the period of the pound sterling rally. Everyone who had a "nose" and entered the GBP market, and exactly played to strengthen the British currency could count on a good result.

However, the trader who won the longest positions in this currency won the longest. This means that choosing the right market is key to achieving a good result. What matters is the volatility and strong trend of the instrument. Again, the principle that those who let their profits grow and do not close the transaction prematurely wins. Majestic decided on the GBP / JPY pair, which in the first week of the competition grew by almost 590 pips, counting from Monday's hole to Thursday's maximum. In addition, the leader of the first stage focused on the oil market and it was these two instruments that gave him PLN 1000 guaranteed.

2nd week of competition - Tesla and its good quarterly results

Not only currencies are distinguished by high volatility. The stock market can also surprise and earn. Anyone who remembered that it was during the competition was the period of publication of reports of American companies, could count on substantial profits. Elon Musk can enjoy the results of the third quarter of 2019 year. His company showed that you can reduce operating costs by up to 15 percent. Thus, they have fallen to the lowest level since the production of the 3 Model.

Endriu1981 - winner of the second week on Thursday before the publication of data lost a lot to the best. Strong jump Tesla shares on Friday at the opening of the American dance floor caused that the proverbial "hair" overtook his rivals. Remember that a real investor does not live in currencies alone.  

2 Chart: Capital curves of the best traders of each round.

3rd week - king of pork

Trader with the nickname Kamil, who took 3. place in the general classification, also won the honorable first place in the last round. Result over 132 percent gave him guaranteed certain victory. His strategy was based on transactions on the CFD market based on the price of a pork futures contract listed on the Chicago Mercantile Exchange. So just like the leader of the general classification.  He made only 7 transactions on them, and the best of them gave him a profit of over 15 thousand. Golden. Kamil also tried strength on the gold market but apparently this serum did not meet his expectations, because he opened only one transaction on it, which admittedly gave him a profit, but cosmetic, compared to the results on pork. 

Konkurs showed that the decision was determined by consistency in action, selection of one or two highly volatile markets (the less popular ones) and additional involvement (competition instructions). After ESMA's product intervention and a change in the level of financial leverage, rates of return in competitions no longer reach staggering levels of hundreds of thousands of percent. In this way, the competition environment has come much closer to the real environment, where there are different emotions and there is a risk of losing real money.