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How meaningful is the King of Micro trading contest? (Just for discussion)
I am creating this thread is just for discussion purpose in order to share some of my opinions, and like to know if other traders feel the same.
I have been followed up closely on the result of King of Micro trading contest for at least a year.I would say that the trading history & trading survey (from top 3 winners) that posted every month are very helpful for all the traders to learn from each other. I believe that should be one of core value that FXCM is promoting all this while.
I guess the purpose of King of Micro trading contest is to stimulate FOREX trading market (of course FXCM could earn more $$ with more transactions made). On the other hand, this could also motivated all good FOREX traders in the world to get involved, and willing to share their best stategy in FOREX trading. So, i consider this as a win win situation, not bad!
But somehow, most of the previous winners of KOM are moderate FOREX traders. They traded in the way that over-leveraged, in order to get highest percentage gain of the month. Most of them will definately failed but i'm sure some won just because of luck and they were already become a winner.
Here come my suggestion, i think FXCM should judge a winner from pips they earned in a month instead of $$ they made. Making more than 1000++% gains from their initial balance does not carry much information as compared to total pips they gained in the month, i guess. In the real FOREX trading world, we always want to make more $$ in short period, that's why leverage is very important to some traders. But, we just need to know how the winner traded like a PRO in the trading contest, and not how much they can earned. Other than that, this method will also clear some of the complaints regarding the 'new margin requirement' that recently implemented.
Anyway, above idea sharing does not mean to attack any FOREX traders. Hopefully FXCM could think about it, so that the KOM is more challeging in near future. Just my 2 cents opinion
Wow You haven't have a clue
Let's see the REAL stake here
$500 buck balance to win $25,000 1st place , $10,000 2nd place, $5000 3rd place for EVERY month.
How do you think huge prize like that can be award EVERY month if FXCM were to accept what you say (if you don't know the true answer to that you are hopeless)
Quote 1: '' I guess the purpose of King of Micro trading contest is to stimulate FOREX trading market (of course FXCM could earn more $$ with more transactions made).''
Reply 1: Wrong, because you Wanted fxcm to change to gain in pips instead of % gain in balance. Now tell me, how could fxcm earn MORE $$ with transaction if everyone transaction is only 1cent per pip. Please just THINK about that for 3 minute. Ok after 3 minute have you come to your sense that ''IF FXCM goal were to stimulate more $$ it would SUREly not by changing the contest to % pip gain. ''
Quote 2: ''But somehow, most of the previous winners of KOM are moderate FOREX traders. They traded in the way that over-leveraged, in order to get highest percentage gain of the month. Most of them will definately failed but i'm sure some won just because of luck and they were already become a winner.''
Reply 2: Luck??????? Please don't say that if you don't know the person your self. Even if it come out from the winner mouth , he/she is just being modest (just because the winner yes ..I say again, YES they don't want to reveal how they are so sure of their 100% win signal that come maybe once pr twice a month). If you still think it's luck... then tell me how is that they are ABLE to bet BIG without blowing their account if they are wrong? That alone is Great skill to me. I can't bet big without blowing my account in 30 pip can you do it? I don't think you can because if you did you wouldn't be complaining.
Quote 3: ''we just need to know how the winner traded like a PRO in the trading contest, and not how much they can earned. ''
Reply 3: I am 100% sure that those trader are PRO at precise entry. Just because you can NOT do it. You need to accept the fact that you don't have a wining system. All that matter in life is.. % gain in $. If I were you you NEED to be glad that FXCM play the %gain in $ if not man... a 500$ can't beat a person with huge balance.
I am sure i have more to say but I don't want to pick at every quote.
You know your post raged me so much that I have to register.
To FXCM contest moderator,
I 100% support the currently way contest are present. It's is 100% fair chance where a $500 balance or $2000 balance tops trader can try to compete with each other to gain % $ which show that their system is SO GOOD that they can afford to leverage without a blow account. That to me is a skill that many of people in losing forex can't do. Leverage is just only a tool for a trader to use at the right time. Those who use it will WILL be profitable and win the contest.
- Victor Raymond
Thanks for the kind words Raymond . I have been working hard to make the contest as fair and equitable as possible. I agree completely that a % basis allows everyone to compete and levels the playing field. Lets be honest , traders are judged on performance and performance is based on % return.
Originally Posted by Victor_Raymond
I have seen all sorts of traders win the contest as well. Scalpers, Swing traders, and Trend traders all have the opportunity to win . Point in case check out the statement of our June winner .
June 1st place KOM statement
The trader only placed 10 trades , with the largest being a 100k position . They still made 1266% starting from a $500 balance! That is astonishing !
Anyway, I am always looking to improve the contest and criticisms are always welcome . Its the only way we improve ! *professionally and as traders* So please feel free to let me know what you think !
For now, good luck with the new Dec trading contest ! Let the games begin !
i agree with victor...
I agree with victor raymond about the KOTM contest being perfectly fair the way it is... i'm sure PROFESSIONAL traders at banks and hedge funds etc. are judged on their performance in the same way (% gained over a period of time). SO why should KOTM contest be any different?
As for the leverage; when i first started following the forum i too used to assume that the people who won the KOTM contest were just people who were gambling and using insane amounts of leverage. i used to think they were just extremely lucky and not very smart for using that much leverage.
THEN IT OCCURRED to me one day that maybe the money SOME of these people put in their account at the beginning of each month for the contest was just a small portion/fraction of their total trading capital. and maybe it was more than just fools luck but actually good trading skills because they weren't going "all in" Vegas style like originally thought.
TO WALKER E. ----please don't change the contest from the current % system, keep up the good work fxcm
Last edited by kjcisco777; 12-05-2009 at 03:54 AM.
Personally I like the competition. No chance of winning but it is an excellent resource for new traders (and oldies also I guess) to see real people who are not all pros necessarily and how a trader can make money. One month was a guy who just waited for all trades to be profitable which goes against conventional stop loss placement theory, one guy who was a newbie of 4 months and another who had been trading 10 years. Also I noted that the lower position traders are making 300% profit so if that #10 of thousands of traders then my 20% in one month is pretty darn good for a newbie. So here I am saying that it helps to see what is reasonable, achievable or just plain stupid to expect. Also interesting to see the guy who makes 10 trades and makes 1200% profit. Thats a good lesson about not over trading but only trading the high probablities. Also we can learn how profitable trades deal with stops, or we can see how they take profits.
As far as FXCM making profits, well what do you expect, its a corporation but at the same time I personally think they provide a good service with a super easy to use platform which cost money to develop. I have demoed other platforms and they are so hard to use that you would surely lose money simply because of that. Its better we all all make money than none of us. With all that in mind I think that prize money is a good thing and I would rather have a nice place to trade that makes it interesting and informative and exciting than a dead old hole where you get stuck in front of a screen to battle it out by your self with no extra input.
So all put together, I will say that the KOM is cool fun and of great educational value if you look carefully at it. To me the rules seem fine. Hope to win it one day. Got to get a couple of 1000 pips to turn my $100 account into 500 yet hahahahaha.
where can i see the results of the micro contest, I was emailed the oct results but havnt received any since. I like to see whats possible!