Dominating. That’s the only way to describe Gui Lin Li’s performance for the first two weeks of September, amassing a gain of 225.91%, with 54.95% currently placed second.
Gui Lin’s meticulous and accurate trading style has been exciting to watch, especially given Gold’s relatively stationary movement. Gui Lin trades almost exclusively on Gold.
The volatility on Gold has moved from $60 average daily movement on the 19th of August to just $26.06 on Friday.
Nearly all traders will suggest the market has to be moving to generate better than average returns. Still, it appears Gui Lin has found a method to extract outstanding returns with reduced volatility.
What is more of interest this month is that 2nd to 6th place is from 46.6% to 54.95%, or just 8.35%.
Take a look at the leaderboard below to see how far in front Gui Lin is and how close 2nd to 6th is.
Volatility has been shown to be a game-changer for our previous monthly winners.
Without volatility, it is extremely difficult to generate strong returns.
But it appears Gui Lin Li has a knack for extracting serious results from Gold, despite the fact it has rapidly reduced in volatility.
As alluded to in analysing his trading statistics last week, it appears Gui Lin uses a martingale trading strategy of position sizing.
While we don’t recommend it, it can be useful in sideways markets that are not trending.
Essentially, you may trade a reversal style and buy the weakness in the market near a support level, and if the market moves against you a little more, you add to the position.
You keep doing this until the market turns around.
I’m sure you are starting to see the challenge with this strategy.
If the market doesn’t turn around, then you are stuck with a large position that is running against you.
Having said that, Gui Lin Li has consistently achieved a win rate above 90% over 258 trades.
The focus and patience behind this strategy makes the results even more incredible.
Congratulations to Gui Lin Li for remaining at the top of the leaderboard and setting the Gold standard in September.
Despite a rocky start, Danyang Wang has one of those equity curves you only dream about.
Often it is hard to remember that the equity curve of everyone mentioned in our blogs is for this month only.
In this case, Danyang has managed to generate a staggering return of 54.95% in less than two weeks.
I’m not even going to extrapolate that to a yearly return as it would be unrealistic.
But it does go to show the power of being part of a leaderboard and competing against other excellent traders. Click here to view the article on the benefit of using a leaderboard when it comes to your trading.
What I find interesting about Danyang’s trading is his interest in trading products very few people are trading.
His top three most traded instruments are listed below.
As you can see from the chart below, the EUR/AUD has been trading in a narrow 170 pip range (in September). Despite this, 57% of his trades are placed on this instrument.
But you can see the ranges have been consistent, especially when shown with the Stochastics indicator, highlighting clear overbought and oversold trading opportunities.
Are reversal trading systems the way to go in September?
One common element of nearly all trading systems is the fact that almost everyone goes into an early drawdown.
They have one or several losing trades in a row as a result of the average time it takes to lock in a losing trade being much short than for winning trades.
The same happened with Hong Lai Li as they started their September trading activity.
Despite the initial pullback, Hong Lai Li has managed to win on 87% of his trades, which seems to be consistent among those at the top of the leaderboard.
Shorter timeframe day trades are more common at the top of the leaderboard, relative to trend following trading systems, and for obvious reasons.
The competition is only over one month, so it can be tricky trying to find a significantly trending market over such a short space of time.
The most significant trend we’ve seen any trader capture is from Mr. Zhen Wang, who won Stage two with a return of over 3,400%. Please note the trading leveraged products is risky, and you can lose more than your starting balance.
Zhen Wang managed to not only find a trending market in Gold but also pyramiding into the winning positions regularly. Click here to see the pros and cons of pyramiding and why it is not a strategy for all trading systems.
22 trades and $500 in gains.
You can see how Hong Lai Li’s equity curve picks up towards the end.
During this phase, he managed to place 22 trades, winning 90.09% of those, generating a positive gain of just over $500.
He managed to do this trading the following instruments from the 9th of September to the 11th of September.
Not only was his win rate high during this time, but his largest trade was $100, while his worst of his two losses was just $27.90.
With trading statistics like that, you can see it is hard not to have a picture-perfect equity curve that slopes from bottom left to top right.
Many people think that entering later in the month is too late to compete at the top of the table.
But I want to remind you that in stage 3, our second-place winner, Jinguo Ye, with a return of 141.08%, placed his first trade on the 27th of August, with just five days until the end of the month.
You can see his equity curve below, after placing 644 trades in just five trading days.
Now is the time to test your best trading strategy in a live environment, to see how you compare to your trading colleagues from all around the globe.
Are you ready to join the next Stage? 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.