Trading Cup 2022 Trader Spotlight – One Trading Instrument That Made Up 93% Of Total Returns
In last week’s Trading Cup 2020 Trader Spotlight, we featured Peizhi Zhang’s staggering July 2022 1500% gains where he showed his ability to locate support and resistance levels, his timely revenge trading skill, proper use of leverage to his advantage, and his manual trading style.
In today’s blog, we highlight another trader named De Jia Li who made 1,507% returns for the month of October 2021 starting with a $500 account balance only. Both traders have low starting capital and similar gains.
We will uncover his chosen trading instruments, stats, trading style and strategy that help him achieved a successful October 1,507% returns. Plus, we will discuss in details the specific trading instrument he used that covered 35% of all his trades yet made up 93% of his entire October 2021 returns.
Before we continue, the Trading Cup leaderboard updates regularly so you can see the results of the top 10 competing traders. Our statistics section also showcases their key trading metrics to give you an insight into their trading strategies.
You can check out the live stats through the Trading Cup homepage.
Before we reveal the successful trading instrument De Jia Li utilised, let’s layout first his statistics.
He performed a total of 293 trades across different trading instruments including:
For the month of October, De Jia has traded these 5 selected instruments only as his choice. Note that 35% of these are coming from the Silver trades. That is the obvious clue in this blog’s title which comprises 93% of his entire October 2021 gains.
How did he managed to amassed this very precise Silver trades?
Drawdowns
Let’s have a breakdown on his drawdowns. In short-term trading, drawdowns matter a lot.
We divided his drawdowns into 3 major levels.
The first 53 trades has a peak of $5,848.86 PnL (Profit and Loss Equity) this is where the first major drawdown level occurred where he bottomed at $1,822.32 resulting a 68.84% drawdown.
The next 42 trades peaked at $8,723.76 then pulled back at $7,754.46 resulting a 11.11% drawdown only. Somehow he made a good turn-around on his second major drawdown! A drawdown level within 10-20% range is considered a decent risk management.
As his October trading activity comes to a closure, his next 60 trades peaked at $10,090.11 down to his final PnL of $8,037.41 resulting 20.34% drawdown. Again within the 10-20% range!
Special note also that during his last 152 trades were held above 8,000 level which we can say he managed to preserve his profits.
He has an overall average of 33.43% for the entire month of October 2021 trading activity.
Compared to our last week’s highlighted trader, De Jia Li has a more natural equity curve but that doesn’t mean his the inferior trader between the two. At the end of my article, we will lay-out in depth one of his Silver trades to show his own trading strategy and skills.
His monthly key trading statistics:
Total Trades: 293
Break-even trades: 6 (A trade result that is within the -1/+1 PnL value range can be considered as a break-even)
Loss trades: 154
Won trades: 133
Win rate: 45.39%
Average gain on wins: $173.28
Average loss on losses: -$100.70
Biggest Win: $970.94 (China50)
Biggest Loss: -$741 (China50)
Trade Direction: 214 Buys/Longs & 79 Sells/Shorts (73% of all his traders are buys/longs)
Best Performing Instrument: Silver ($7,490.08 PnL comprises 93% of realized October returns)
Worst Performing Instrument: Gold (-$408.20 PnL)
Quickest Trade: 1 minute (China50)
Longest Trade: 6 days and 11 hours (China50)
Average Trading Volume: 0.94 Lot Size
Smallest Trading Volume: 0.10 Lot Size
Largest Trading Volume: 5.01 Lot Size (China50)
Based on the stats gathered, he traded for 3 weeks in the month of October 2021. He manually closed both his 228 winning and 27 losing trade positions thus making a total of 255 overridden trades. Only 38 trades went according to his initial trade plan. We can see here that he’s more of a conservative type of a trader applying strict management skills. He surely paid more attention to his risk management after the he suffered a terrible 68.84% drawdown making sure his returns are well retained. He went greedy over the China50 trades with the largest trading volume of 5.01 lot size scoring him a $970.94 gain as well as hitting him hard with the same leverage cost him -$741 loss! It is very important to understand the risks involved in leverage trading. Out of that experience, 44% of his trades were focussed on Silver from mid to final part of his October trading journey with an average volume of 0.80 per trade only thus he found footing and started to pile gains for his account. We can clearly see the results of his adjustments on his second and final drawdown levels and by doing so, making the Silver as his best performing instrument. He also more of a day trader type and not using algorithmic trading systems or EAs. Overall, he didn’t allow his emotions to lose control over his trading decisions.
Let’s have a look at some of his notable Silver trades:
XAGUSD 15-minute chart via ACY MT4
Remember that I pointed out earlier that 73% of all his traders are buys/longs. On this day, 12th October, he started with just 1 long position then added another as soon as Silver price fell. He keep adding buy positions making 11 in total then markets moved to his favour resulting $3,544 upon his exit. Note that some of these positions were closed that day and the next day but all ended well in profits.
XAGUSD 15-minute chart via ACY MT4
The following day, 13th October, he went long again with 8 bold positions. Five of these were added as soon as price gets near to his targets summing up a total of $1,181 gains for the day.
XAGUSD 15-minute chart via ACY MT4
Last example that happened on 14th October, again he opened 2 initial longs then added 3 more when price getting closer to his take profit levels. All successfully closed out garnering $1,554.
As a conclusion in this week’s trader spotlight:
Drawdown Management
His trading strategy revolved around Silver applying excellent drawdown management skills even he has only a 45.39% win rate.
Batch Trading
Strength in numbers. He utilised bulk trading orders at different prices as part of his successful trading strategy manifested on Silver trades. He understands both the rewards and risks offered in batch trading.
Price Positioning Strategy
When the price getting nearer to his exit targets, he’s adding more to support his initial positions hence increasing chances of closing them out successfully. Such advanced trading skills!
Congratulations to De Jia Li for a successful trading result in October 2021!
If you are a trader or a fund manager, showcase your trading skills by joining the Trading Cup 2022 competition!
Every week, we scout for the next spotlight trader so stay tuned in our blog and social accounts.
Trading involves risk.
Original article source written by me:
https://news.tradingcup.com/en/news/trader-spotlight-one-trading-instrument-made-93-percent-returns
