Eurodollar rockets higher while US dollar sinks & the latest leaderboard update

With less than 24 hours to go, it appears Zhen Wang will claim the top spot. From early on in July, Zhen was able to hit the top of the leaderboard, and as soon as his return exceeded 500%, he had no competition.

Reminder: Stage 3 is now open. Click here to open an account.

As of the screen capture below, Zhen’s return is an astonishing 2,549.63%, which has meant his $2,000 is now worth over $52,000.

Rounding out the top five, which is where you want to be to get an invite to the Grand Final, we have Yuan at 596%, Mr Tsui at 562%, Gustavo at 179% and Danyang at 136%.

Keep in mind that trading on leverage gives you the potential to lose more than what you start with.

With plenty of volatility expected across Gold, EUR/USD, GBP/USD, Silver and Crude Oil, the final hours of trading could see the leaderboard change dramatically, like it did on the final day of trading last month.

Here’s the current leaderboard:

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3rd place systematic trading across 30 instruments

Today we will turn our attention to Yuan Tsui, who is currently sitting in third place.

What is interesting is Yuan appears to be trading a systematic mechanical style of trading, covering 30 different trading instruments.

This is different from those who are more discretionary traders, taking trades based on less defined criteria.

Mechanical system traders have clear cut black or white criteria. The position either met the criteria or didn’t.

The assumption comes from the sheer volume of trades Yuan has made over the last 30 days, totalling 581 trades as of writing.

To be able to monitor 30 trading instruments with an average of nearly 20 trades per day and to be able to work out stop loss and take profit orders is more than a full-time job.

The possibility is they are running an Expert Advisor (EA). Watch the interview with Gustavo, who is in our leaderboard this month plus made it to last year’s Grand Final table.

Eurodollar moves over 630 pips higher in July

The Eurodollar had a massive move in July, rising 633 pips as of writing, moving from 1.1233 to 1.1866.

Not only has the breakout been strong, but the momentum during the breakout has allowed many traders to ride the trend.

The US dollar index (DXY) has had a shocker this month, dropping over 440 pips in the same timeframe.

Overnight, we saw Germany’s economy revealing a larger-than-expected second-quarter economic contraction, which saw the German 30 Index drop significantly.

The Euro is one of those trades that short sellers were likely caught on the wrong side at many stages of the breakout, only to have to cover and buy back.

EURUSD.png

Dollar Swiss breaks support with 11 straight down days

As mentioned, the US dollar has been one of the weakest currency pairs this month.

You can see what impact that had on the USD/CHF, falling lower for 11 straight days.

With the dollar Swiss sitting oversold for much of this pullback, many traders will be eagerly awaiting a potential retracement higher.

But of course, this means you’d have to go against the dominant short and medium-term trend to gain anything from a potential upswing.

USDCHF.png

July was a month of breakouts and strong momentum in the direction of the trend

Breakouts in July have been plentiful, and technical traders would have more than likely been handsomely rewarded if they were on the spot on the breakout opportunities.

Not only that, but momentum traders, trading off the back of breakouts, would have seen some joy as well.

But clearly, capturing the positive move in a breakout and following the momentum is a lot harder than it appears when viewing a chart.

For the first time, we have a few traders in the top 10 who are in the negative.

No one likes to generate a negative return, but it is a part of trading that no-one is immune to.

The key to suffering a drawdown is to make sure your losses are small relative to your account size.

Remember, trading with leverage is a double-edged sword, which means we all have the chance to multiply our wins but also magnify our losses.

Try and keep the following in mind when you are on a losing run.

·         To recover from a 10% loss takes 11% in gains to get to breakeven

·         A 25% loss takes 33% to get back to breakeven

·         A 50% loss takes 100% to get back to breakeven

And these are percentage figures to get back to square.

As you can appreciate, keeping your losses small is paramount to keep you in the game but more importantly, to make sure your confidence doesn’t take a significant hit.

Now is the time to register for the Stage 3 August Contest.

Who knows? Your results may exceed your expectations, and you may find yourself on the invite list to the Grand Final in an exotic location with your fellow trading peers.

Here is a list of all of Yuan Tsui’s instruments he has traded in July:

1.       AUDCAD

2.       AUDCHF

3.       AUDJPY

4.       AUDUSD

5.       BTCUSD

6.       CHFJPY

7.       CHINA50

8.       DJ30

9.       ETHUSD

10.   EURAUD

11.   EURCAD

12.   EURCHF

13.   EURGBP

14.   EURJPY

15.   EURNZD

16.   EURUSD

17.   GBPAUD

18.   GBPCAD

19.   GBPCHF

20.   GBPJPY

21.   GBPUSD

22.   GER30

23.   NAS100

24.   USDCAD

25.   USDCHF

26.   USDCNH

27.   USDJPY

28.   USWTI

29.   XAGUSD

30.   XAUUSD

Are you ready to join the next Stage? Click here to register an account.​​​​​​

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Ashley Jessen // Author of CFDs Made Simple, Head of Marketing at ACY Securities

Ashley Jessen is the author of CFDs Made Simple and Head of Marketing at ACY Securities. He has been in the financial services industry since the year 2000 and worked for some of the leading companies in the CFD, Forex and Online Trading space.