The Dukascopy Strategy Contest is definitely one of the most challenging contest in the contest group. In this contest, a contestant is expected to create a strategy that would trade the Forex market profitably, with a lot of emphasis on high profitability and low account drawdown. This means a contestant is expected to maximize profit, while employing as little risk s possible.
I have participated in the Strategy contest since June 2013, and I am happy to say I have been able to win $1,500 in cash prizes. These were gotten in the months of June and October 2014.
One of the things the Strategy contest tries to do is force a trader to gauge his or her risk exposure. A contestant gets more points if he or she has a lower drawdown during the contest month, while huge drawdowns are rewarded with less points.
An example of this occurred in the month of May 2015.
The trader Cocciolla finished with the third largest balance of 428.10k, yet he ended the month at the 8th place simply because he had a drawdown of 56% during the contest month.
A trader is basically a risk manager. This is because even though his or her job is to find and execute profitable transactions; trading has to be don…