2024 Pivot #20 Realizations of joining trading competition
I rejoined the trading competition last January from MyFundedFX. Here are the results and sharing my experience (and learning!)
I shared from my recent post in the pasts (Pivot #14) that I have joined the global trading competition that is held monthly by MyFundedFx. I have some expectations of what my targets are. However, it ended up that I blew the account due to my ignorance with the rules.
One of the reasons I paused with writing substack was to refresh and reset with the start of the year. One of which was trying to understand why I can seem to get a good hang of competitions. The biggest challenge is the market time and how a trader will be able to maximize it without jeopardizing the risk of ruin.
So how did it go for me? See my statistics.
The goal I had last September 2023 was to be atleast in the top 50 and remain in net positive position by end of the competition. This is the same goal I have in mind for the January 2024 competition.
I also have following game plan as detailed below.
The said competition for January 2024 had 28,350 participants across the globe. With 10,174 who were able to hold their accounts until the end.
Obviously, the goal to be ranked above 50 did not materialized. But I was glad and proud of how I have accomplished. This was also a testament about my trading style and strategy despite a challenging month.
So, what are the learning points I note at this competition? No beating around the bush anymore, here it goes…
Learning #1 Quality > Quantity
Not everyone, including myself, has the time spent to monitor the market every day, every minute. It is critical that I follow the days that I set myself so I can preserve my capital for potential drawdowns. When you are in a competition, you could not help but to look at the ranks and compare how far you need to climb up the ladder. I am guilty that I did that. But I refocused and taught first of my personal goal, getting at top 50. Then, shift my mentality of maximising the most of my screen time.
The rank one of this competition has only 32 entries. Whereas the rank 2 of the competition has only 28 entries. I only have 35 entries. Which on average, we all put entries 2 to 3 times in a given day, if one is trading daily. I often describe this as a calculated move. I don’t want to randomly put entries for the sake of trading. I am more after quality trades that my strategy and style could anticipate. So, I try, as much as possible, that I enter trades when I am optimized, rested and operating at top of my game so I can follow through with my trade plan.
This also means, a quality daily routine outside of the market, will help someone to stay disciplined and focused. A holistic approach to one’s health and wellbeing is also a reflective of the readiness in the market, more so, in a competition.
Learning #2 Choose your poison
During the early stages of the competition, I was trading two other markets, which are, US Oil and BTC. But the competition was only allowed to trade a total of five lots in a given time, regardless of markets. I note however, that even if these are profitable trades and have good execution, it did not bring about the highest return.
Though risky, I put my focus by trading XAUUSD solely during the mid to final weeks of the month. I gained my highest trade win in the same market and bump my ranks higher.
In competitions, it is critical to understand the play that will give you the maximized return and isolate all energies on the said market. If in investments, or personal account, diversification is a necessity, the competition will require you to put your eggs in one basket especially if it falls according to your plan.
Learning #3 Failure is a way to breakthrough.
I had series of a days that I was not hitting the mark. Timing was off and just could not get the sense of the play. I failed and have to reset.
But if these challenges did not happen, I won’t be able to revisit the mistakes or errors and recalibrate. Same as my experience, I have some what ifs that if I have traded XAUUSD solely, I would have ranked higher. But the discovery is a way for my breakthrough. That AHA moment that sometimes we discover that helped us be better students.
Failure is a phase. It does not define you. Learn and move forward with confidence that you have the wisdom you did not had before.
I encourage readers of this substack to challenge yourself. Be it in trading or other aspects in life. Joining competition maybe a waste of time for some, but it is a great avenue to challenge yourself and learn in a safe environment. The reward is monumental. Alternatively, the losing part is actually a reward in itself with learning what went wrong when you folded. Pivoting your way out of these challenges will allow us to stretch our capacity and bring our best at sticky situations.