Stage three of our Trading Cup challenge has been inspiring for a number of reasons.
Not only are we seeing an incredible group of traders at the top of the leaderboard but the stories we are hearing from the competitors and trading groups is inspiring.
Trading groups competing against each other
Last month, 2nd place told us how he was part of a large trading group from Taiwan, run by a lady named Joyce.
This has set the competitive spark among their trading group on fire, as a result of his excellent 664% return.
Not only is Yuan Tsui competing again this month, but he has provided the inspiration for all the other traders in their education system.
Further to this, we’ve had a number of other groups reach out, inspired by the recent results, to enter their traders and see how their systems perform relative to their peers.
Stage 3 leaders and what they are trading
Both Chuan Hui Li and Zhen Wang continue to impress with their trading results and strategies, especially since they are not active traders as such.
Both are holding positions in Gold and adding to their winning positions as the market and their strategy dictates.
So, instead of actively buying and selling, they are focused on one asset class and maximising every opportunity out of the one move.
Does that mean they always win?
No.
At the end of last week, as Gold rocketed to new recent highs, their returns were more than 500%. But do keep in mind, trading leveraged products is risky and can result is losses larger than your starting capital.
In slight contrast, Haidong Liu, another consistent performer, is also focused on trading Gold but employs a more active trading style, tending to buy and sell more frequently.
The position sizing strategy Haidong Liu uses is much more risk averse compared to both 1st and 2nd.
You can see the results of the top ten traders below.
S&P500 rockets back to near all-time record highs
As you can see in the chart below, the S&P500 has been incredibly bullish since the low on the 23rd of March, rising 1166 points since then or 53%.
What has been causing this rally?
As you are no doubt aware, there has been a huge amount of stimulus from the Fed being pumped into the market.
As Holger Zschaepitz notes below, the market has been rising in tandom with the amount of stimulus offered by the Fed.
But are we seeing signals of a top?
Holger offers some perspective with his Buffett-Indicator, suggesting that valuations are stretched and that stocks are currently in bubble territory.
One this is for sure, last time the market rallied lower, it was swift, providing immense opportunity for those with the skill to take advantage of such a move.
Gold rallies to new highs but pulls back following the NFP data release on Friday
The daily chart on Gold continues to capture the focus of all traders, with new highs happening on a regular occurrence.
The pullback on Friday came as a result of US dollar strength with Non-farm Payroll data beating expectations. The US unemployment rate ticked lower to 10.2%, which pushed the US dollar higher and Gold lower.
You can see that reflected in the chart below, with Friday’s price action showing a near bearish engulfing pattern.
What is interesting to note is how the World Gold Council reports the July GoldETFs recorded their 8th consecutive month of positive flows, adding 166t, equivalent to US$9.7bn AUM.
In a recent post by Alistair Schultz, he talks about Gold being used to offset equity risk and the possibility of it being a replacement to bonds.
Eurodollar in a 160-pip consolidation range
The Euro is in at an interesting juncture, considering all the world events currently hitting the headlines day by day.
We note that the volatility has been rising slightly, as the market continues to pullback from each short-term high hit.
We’ve seen over 1100 pips in gains in the last 56 days, so it is understandable for traders to be getting nervous at each new high.
Last week we noted the bullish divergence starting to show across the Dollar index, with many of the major crosses showing bearish divergence at recent highs.
Also, the Turkish Lira (USD/TRY) volatility has been huge, rallying from a low of 6.889 to the current price of 7.299 in just 4 trading days.
As reported here, this will be the key area to watch for those trading any US dollar crosses like the Euro or British Pound (GBP/USD).
Have you joined the trading challenge yet?
Now is the time to put your trading strategies to the test.
Not to prove your system works, or you have the best trading method in the world.
But instead, look to compete against your fellow trading peers around the world and potentially earn a spot in the Grand Final.
Further to this, get your colleagues and friends involved like some of the trading groups we see on the leaderboard.
Set up a friendly challenge and help each other achieve their best results. You will be amazed at the effect of being in an MT4 trading contest like this and seeing your name on the leaderboard.
All the best with your trading.
Are you ready to join the next Stage? Click here to register an account.
