Cheng Tao Lu has risen to the top of the leaderboard yet again due to being able to manage some two decent losing streaks with an impressive fight back.
After just 19 days, Cheng is sitting on a 76.01% return from a $AU2,001.78 initial capital, which is extraordinary.
Casting our eyes over the leaderboard, we can see it is incredibly tight at the top, with just 3.5% splitting the top three traders.
What is exciting about this leaderboard is a number of the top ten have been consistently in the top ten over the last six months.
Historically, Cheng only trades FX pairs, and we see the same pattern this month.
Most of the traders are split between three FX pairs, GBPUSD, EURUSD, and USDCHF as per the analysis below.
November has seen some erratic trading from Cheng, with a mixture of relatively steady and small wins and losses, followed by some larger than typical trades.
It is clear to see that he’s had some wild equity swings, which have included the following runs of wins and losses:
· 17 trades resulting in $504 in losses.
· 4 trades with $303 in wins.
· 12 trades with $747 in wins.
· 6 trades with $956 in losses.
· 5 trades with $1,448 in wins.
The reason for this is the first half of the month saw steady position sizing, which then changes quickly into larger positions.
If Cheng were to review his trading statistics, he’d notice that most of his wins came on the British Pound, whereas the biggest portion of his loss was on the Dollar Swiss currency pair.
Recently I was talking with a trading educator based in Pakistan, who is having exceptional results with his students.
His primary focus for his students, and main mantra, is ‘One Pair, One Behaviour.’
That means every student is taught to build their trading strategy but only apply it to one currency pair in one timeframe.
They learn quickly to get in sync with the market and focus on that one pair, excluding all other opportunities.
Have you ever analysed to see where you are leading money versus those instruments you excel at?
My recommendation is to review your trading statistics as soon as possible and know where your strengths lie and over which timeframe you excel.
You will no doubt be surprised by the results. Every trader who dives deeper into their statistics is often shocked by what they find.
Professional traders even go down to the days they trade, recording their analysis from Monday to Friday, so they can see clearly which days they are winning and which days are dragging their performance lower.
Believe it or not, when I review Cheng’s trading statistics, his total win on the GBPUSD pair is $2,242.28.
Yet his overall account is only up $1,734.36.
This means Cheng has lost $507.92 on the other three pairs he has traded in November.
Think of this analysis as you would a diet. Many people are overweight due to excess in one food or another.
The elimination diet works wonders as all you are doing is eliminating one type of food (could be sugar or carbs etc), and often, our bodies rebound strongly, helping those lose weight.
Likewise with your trading results, eliminating specific instruments through detailed analysis may be all that is required to see your equity curve climb to new highs.
The story is in the data. Start tracking as much as you can today.
Cheng’s biggest loss was on the USDCHF, reducing his equity by $397.07 in one trade. Ouch.
You can see that Cheng tends to trade breakouts, but in this trade, the longer-term moving average was down.
But there were plenty of potential reasons for entering long at that stage.
He tried to hang on but eventually closed the position when the downtrend got stronger.
Good thing he closed then as his loss would have continued to worsen.
On a positive note, his best win, as mentioned above, was on the GBPUSD pair.
Same style of entry, but you will notice the moving average is moving up and not down.
These are what we refer to as ‘Gates’ or confirmation criteria when identifying an entry point.
You might choose to enter on a breakout, but only when the 100 period moving average (entry Gate) is rising.
The winning trade below resulted in a +$1,084.50, pushing Cheng to the top of the leaderboard.
Plenty of exciting data to digest with this week’s leader.
Congratulations again to all those in the black this month, as it has been a difficult month to extract the winners.
Remember, we are winding down to the end of Stage 6, your last opportunity to qualify for the Grand Final.
It is never too late, as on several occasions, we’ve seen people start trading at the end of the month and come second with incredible returns. We’ve also seen those trading with Expert Advisors do well too.
Are you ready to join Stage 6? Click here to register an account.
Ashley Jessen is the author of CFDs Made Simple and Chief Operating Officer 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.