Why did Dukascopy introduce all these limitations on trading (2% limits, min 10 pips SL/PTs, only one position allowed simultaneously in one currency etc.)?
Its just like trading in the real money world, being careful about the % risk of the account and preventing emotional trades. So it takes the trader to really study the trades and opportunities and also preventing greedy strategies that result in blowing an account. In resume its a school for real trading.
It is an analytical contest. The contest results will determine the traders with the most accurate market forecasts. We do not focus on pure performance. We want the trader to be consistent, rational, and confident in his own actions. Moreover, via these limitations we limit the risk of cheating on certain factors.
I think it was to create great money management
It is because, Dukascopy wants to learn us to use stop loss. Forex market is a fluctuation market and stop loss is one of the important tools which prevent us to trade emotionally and lose all our deposit in case we trad opposite of the market. and also to evaluate whether we have a strategy and goal or we trade by chance.
Open trading account