The first time I took part in a forex trading contest, I blew up in 2 days.
In the following year, I came in 5th out of 3000 participants.
Now you’re probably wondering:
“How did you do it?”
Well, I’ve got a few “tricks” up my sleeve that I’ll share with you later.
Know that these “tricks” you’re about to learn can be used for good or evil.
So, promise me you won’t abuse them and use it for the wrong reasons, all right?
If I have your word, then let’s begin…
What is a Forex trading contest?
A forex trading contest is a competition between traders to see who can achieve the highest return over a period of time.
Some forex trading contest involves trading real money whereas some uses paper money.
Now, before you get excited about winning the next forex trading contest, you realize that…
Why winning a Forex trading contest doesn’t mean you’re a consistently profitable trader
“Why is this so?”
The reason is simple.
A forex trading contest is like a simulation. There is no pressure as you’re not trading with real money (even if you are, the amount is usually minimal).
In other words, a forex trading contest is like driving Daytona in an arcade whereas the real world of trading is like racing in an F1.
As you’ll see later…
Winning a forex trading contest requires different strategies and techniques…
…some even involves breaking the cardinal rules of trading.
But before I get to the strategies on how to win a forex trading contest, you must first know…
Who’s the biggest winner of a forex trading contest
The answer might surprise you…
…it’s actually the broker.
Let me explain:
By organizing a forex trading contest, the participants spread the word among each other (like friends, colleagues, and etc.) which increase the sign-ups for the registration.
After the competition, there’s a good percentage of the new signups will open a live account with the broker (since they have built trust and familiarity).
And this increases their clientele which would otherwise cost thousands of dollars if they advertised themselves.
This strategy is so profitable that brokers can offer cash prizes to the top winners and still come out ahead.
Don’t get me wrong. This isn’t anything illegal but I just want you to know who is the biggest winner in a forex trading contest.
Now that you’ve learned the truth, let’s learn how you can be a winner too.
Why you should “go big or go home” in a forex trading contest
You should risk 1% on each trade.
You need to apply proper risk management.
You should risk a fraction of your trading capital.
Those are good rules to follow if you’re trading a live account. But if you’re applying those rules to a forex trading contest…
…then it’s stupid.
Because the goal of a trading contest is to generate the highest return within a fixed period of time, and not to see who has the greatest return relative to risk.
This means you will put on large position size… risking anywhere from 5 – 50 % of your account on each trade. It’s the only way to get triple-digit return by the end of the trading contest.
Now let’s break the second cardinal rule of professional trading…
Why you need a high win rate in a forex trading contest
By having a wide stop loss and small target profit. This will give you a high win rate and quickly rank you to the top of the competition.
You’re probably wondering:
“But won’t my losses wipe out most of my profits?”
Losses will eventually come and wipe out your small gains.
So, what you’re doing is betting on the fact your losses will come after the trading contest has ended.
Now depending on the duration of the trading contest, the shorter it is… the greater the odds of you pulling this through.
And you can bask in the glory of a top trader with no one knowing the tail end risk that’s lurking in your trading results.
I’ll teach you a trick to overtake your competition and they won’t know what hit them in the face.
How to use this “one trick” to dominate your competition and leave them in the dust
Here’s the thing:
Even if you apply the techniques I’ve shared with you earlier… it doesn’t mean you’ll rank at the top of the table.
But no worries, I’ve got a solution to it.
The 1st placing has a gain of 150%.
The 2nd placing has a gain of 140%.
The 3rd placing has a gain of 130%
The 4th placing has a gain of 120%
You’re in 5th place with a gain of 100%, and the competition ends in a day.
So, what do you do?
Well, my suggestion is to go all in.
This means risking your entire trading account on a single trade.
Now before you think I’m crazy, let me explain…
There’s a 50% chance of winning and a 50% chance of losing everything.
Now think about it…
The cash prize for anything after the 3rd place is usually crap and people only remember who comes in the first place.
Do you know who is the second person to land on the moon? You get my point.
From a risk to reward standpoint, it makes sense to go all in with a 50% chance of claiming a better prize and being recognized as a top trader.
And this is why if you’re playing “catch up” and the competition is ending soon, it makes sense to go all in.
How to generate 1139% in a forex trading contest — guaranteed
Here’s how it works…
A financial guru sends out a newsletter to 10,000 people. Half of the newsletter says stock A will go up, and the other half says stock A will go down.
If stock A goes up… it means 5000 people have gotten a correct stock pick.
Next, he sends out another newsletter to 5000 people. Half of the newsletter says stock B will go up, and the other half says stock B will go down.
If stock B goes up… it means 2500 people have gotten a correct stock pick two times in a row.
Again, he sends out another newsletter to 2500 people. Half of the newsletter says stock C will go up, and the other half says stock C will go down.
If stock C goes up… it means 1250 people have gotten a correct stock pick three times in a row.
Now repeat this process for 10 times…
…and you get 9 people receiving a correct stock pick 10 times in a row.
You’re probably wondering:
“How does this generate 1139% in a trading contest?”
Well, here’s the secret…
Enter a trading contest 100 times using different identity. The more entries you can get, the better your returns.
Risk 50% of your account on each trade. You can risk more if you wish to and the technique will still work.
Out of 100 of those accounts, 50 will go long on EUR/USD and the remaining go short on EUR/USD.
Out of the 50 positive accounts, 25 will go long on EUR/USD and the remaining go short on EUR/USD.
Out of the 12 positive accounts, 6 will go long on EUR/USD and the remaining go short on EUR/USD.
Repeat these processes till you’re left with one account.
If all goes well, that account should be up 1139% — which should put you in a sweet spot.
Don’t apply these strategies and techniques in a live account because it’s a matter of time before you LOSE everything.
Frequently asked questions
#1: How does having a wide stop loss mean that the strategy will have a high win rate?
To be specific, if you have a large stop loss relative to your target profit, you will have a higher win-rate. But it doesn’t mean that you have an edge in the market.
For example, if you have 20 pips stop loss but a 2 pips target profit, then you’re often likely to hit your target profit. But when the losses come, they will be larger than your winners.
#2: Did you create multiple trading accounts for the competition through changing your IP address?
No, I just got lucky with this trading competition as I risked more than usual. I risked about 10% of my account on each trade and got lucky. That was how it worked for me.
Here’s what you’ve learned in today’s post:
- Winning a forex trading contest and being a consistently profitable trader is two different things altogether — and it requires a different skillset
- The biggest winner of a forex trading contest is usually the broker or organizer
- Risk a large % of your account on each trade
- Get a high win rate by having a wide stop loss or no stop loss at all
- Go all in at the late stage of a trading contest
- Sign up a trading contest with multiple entries, the more the better
Now over to you…
What are some “tricks” you can use to win a forex trading contest?
Leave a comment below and let me know your thoughts.