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Important suggestions for the next MyFxBook trading competition...
Iepriekšējās 1 2 Nākamais
germantrader

Biedrs kopš Sep 19, 2012  32 ieraksti germantrader Sep 21 2012 at 17:47
I found this posting on forexmagnates , does this make sense and will it take off the gamble effect that TreeTox mentioned?

the contests should have an additional factor to normalize the gross rate of return. If you take cues from Varengold Bank’s fx contests, you can see that those who trade aggressively are just as much chance to win as those with conservative strategies because they add an additional factor (standard deviation of the daily account balance change) to create a ‘risk-adjusted ROI’. And it still allows traders to trade however they want. It’s one of the most objective methods I’ve seen to get accurate picture of ROI yet.
https://www.trading-challenge.com/en/index.html

TreeTox

Biedrs kopš Feb 17, 2012  7 ieraksti TreeTox Sep 21 2012 at 18:34
germantrader - I think you may have provided a solution to the problem ! I had a look , and it really makes sense to implement something like this for the next competition - for those people who want to do maximum size, they can still carry on doing it; for those wanting to trade more conservatively, then they can do so - but everyone knows that at the end of the day, it is the risk-adjusted rate of return (RARR) that would be used to rank the eventual winners.

There could be two columns - absolute equity return and risk-adjusted return - and both can be used to rank top performers to the worst performers in a table, as it is now. However it would be made clear that the final decision on the competition winners would depend upon the rankings in the RARR; here is Varengold's version of the table which seems so much more informative and actually reflective of the skills of the traders within realistic bounds:

https://www.trading-challenge.com/pdf/Ranking.pdf?1322667081

If they are using this RARR way of assessing competitors and fund the winners with 150,000 USD, it backs up the concerns and frustrations I have. In fact, all the banks, traders, algos, etc. are judged this way. Below, they kindly provide the pretty straightforward metric to implementing the RARR.

https://www.trading-challenge.com/pdf/FAQ_en.pdf

Please, let's make the next competition more interesting by doing it this way - and it will encourage new interest and actually bring to the fore consistently good traders instead of lucky gamblers !

germantrader

Biedrs kopš Sep 19, 2012  32 ieraksti germantrader Sep 21 2012 at 20:34
@TreeTox

glad that I could contribute something here. but is there a simple way to explain this kind of method? I am sure I am not the only one who didnt understand this explanation.

thanks in advance

germantrader

Biedrs kopš Sep 19, 2012  32 ieraksti germantrader Oct 08 2012 at 12:29
I found a posting of the current leader of the contest (from The UK) that he mentioned that this contest is not who will have the most pips earned at the end of the contest but the most profit.

so how about a contest where the most pips earned will win the contest? does this make sense?

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