THE 2007 TRADING CHAMPIONSHIP! - page 9
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
I don't think there will be anything to calculate at the end. The greatest balance will win. With a lot of capital and little risk, the noteworthy experts will be visible to the naked eye. They will have to make a lot of profitable deals in order to achieve the desired effect and to build up a considerable capital. At low risk, there is no possibility to make 5-6 very large deals (va-bank) and win the Championship.
There is no doubt that with a huge number of deals the losing EAs will also be visible.
Such an expert will earn less than one that can work not only on a trend, but also on a flat and on several currency pairs.
Such an expert will earn less than one that can work not only on a trend, but also on a flat and on several currency pairs.
The idea is to identify the most skilful expert in the competition.
If we limit it to a small deposit of, say, $500, we will not be able to open several deals at the same time, which is not good. Limitation of a margin call, even at 100%, allows us to play with half of the deposit at once, so aggressive Expert Advisors based on luck will rise.
Limitation of 5-10% allows showing logic of the Expert Advisor, while leaving the possibility of capitalization and no limitations on the number of deals. In addition, it is as close to real trading as possible. What else do I need?
I hope that the organisers will pay attention to this offer.
We are arguing about conditions that are close to the real thing. And the reality is that 90% of traders are losing real accounts. And another thing: what approximation to reality can we talk about if we artificially increase the percentage of margin call, which does not occur in real brokerage companies?
It turns out that we do not want to deal with reality, but to increase a percentage of successful Expert Advisors, i.e. to really prove high capabilities of MQL4 for writing auto-advisors. This is what we want to achieve. Unfortunately, without the disclosure of the code it is impossible to achieve the required quality. The statistics shows: only 43 Expert Advisors out of 258 have showed at least some profit, i.e. about 17%. The percentage share is higher than the statistical average of 5-10% but it is not as high as we would like the really worthy experts to participate in the Championship.
Let's review some of the proposals.
1) Limit the amount of margin-call to 50% (or even 70%). I agree. I myself would even increase this figure: imagine a trader risking 30% of balance. This corresponds to an MM that a potential investor would like!
And another thing: what are we going to do with an expert who has been subjected to a margin call? Disqualify - or allow to continue? Personally, I would choose the first option.
2. Minimum number of trades, say 10. I disagree. Unfortunately, this limitation is easily removed, again for the benefit of the Championship and not for the sake of real trading: If the Expert Advisor makes only, say, 2 deals a day before the Championship is over, but they are very good, then on the last day of the Championship it opens 4 times and immediately closes locked positions at the minimum lot. The losses from these deals are minimal. Formally, it is 10 trades, but it's obvious that this is not the way they work on the real site!
3) Alpari IDC's method of calculation: it obviously reduces the entire MM to zero. This is not good.
4. Duration of the Championship: 3 months is quite enough. Already at the last event we have seen how many times the leaders have changed - and still too risky guys did not pass. Another thing is that the Expert Advisor that I personally would not trust with money management. Which of the criteria he did not meet?
5. Cut off the looters: I agree, it makes sense. But this requirement was already part of the terms of the metaquotes themselves: advisors with excessive traffic are cut off.
6. Limiting TP/SL ratio to a value greater than 1: I disagree. There may well be reasonable systems where this value is less than 1, although I must admit that I don't like such systems.
7. Initial Deposit: 10000 is still too much. 1000 is quite enough, and even better - a tiny 500. And investors will also understand this, because it would be illogical to trust 10000 to managing a new trader. And on the other hand the trader who increased the deposit from 500 to, let's say, 2000 will be looked at with respect...
8. Entry fee of $100: very reasonable, but severely restricts the flow of those who want it. Doesn't pass. Although you could lower the entry fee to, say, $30. And refund it - in full only! - to all those who finish the Championship with a predetermined positive result (say, the initial deposit + $30).
9. Pre-testing over a significant period of time (say, a year): it is logical, but it will eliminate most of the Expert Advisors on the maximum drawdown. Really worthwhile experts will remain, though, and it will be easier for investors to choose from them.
10. Limitation on the number of lots and the number of positions: I would do away with it. Let the developer of the Expert Advisor decide by himself how many positions to open, based on the level of margin-call, set by the organizers.
Limiting the deposit to a certain percentage of the balance (equity): a rather artificial limitation, because you can easily open with half the deposit, but with minimal risk (i.e. small stop-losses).
8. Entry fee of $100: very reasonable, but severely limits the flow of those wishing to attend. Doesn't pass. Although you could reduce the entry fee to, say, $30. And refund it - in full only! - to all those who finish the Championship with a predetermined positive result (say, initial deposit + $30).
In essence it was not a championship, but something similar to a sports day on a regional scale, where the main condition is that someone, no matter how, must come to the finish line.
That's the results.