Forex Demo Contests are great tools for having fun and practicing trading. As with any sport, forex contests have their code of conduct and you should apply to it. Failure to do so will not put you in unfair situation compared to other participants. Also you could be penalized by an organizer. Forex Contest Strategy plays an important role.
This article will not tell you how to win a forex demo contest. Luck plays important role, and cannot be neglected. This article will focus on explaining the best forex demo contest strategy, it will also explain best demo contest practices and show a few tricks for an extended participation.
How to Start?
Forex Demo Championships are quite fun as all of the traders try to earn as much as possible within a short amount of time, especially in the beginning. In most of the cases, the participants open maximum size position right when the contest starts. This generally results in a quick elimination of the people that opened a losing trade and also this sets a group of people that nearly doubled their balance.
A tip to remember here, if you are the first group – you are out. Being in the 2nd group sets you ahead, so be willing to the the risks early in the contest. The key part of this forex demo contest strategy is not to end up in the middle. It is better to lose all in one shot and save your time than trade cautiously and end up on 50th place.
How to Continue with Forex Contest Strategy?
This is a hard question to answer, as it would generally depend on the contest duration. The shorter the contest, the more risks traders are willing to take in the beginning and the more profit they can generate actually. It is possible to see someone turning 10,000 USD of the contest money into 150,000 USD till the end of the week. On average, you can be fine with quadrupling your initial balance, so if you started with 10,000 USD, you should end up having 40,000 USD to have high winning chances. This means that you should most probably take another risk of placing a large trade. Remember, forex demo contest strategy is aimed at winning. Losing everything or just doubling your balance is the same thing.
How to Finish?
It is common for traders to keep the losing positions open, and as it is a terrible mistake from a view of trading psychology. It also occurs often during the best trading demo contests. You may expect 80% of your opponents to hold a few losing positions. Once all of the positions are closed, you could expect a few people above you in ratings to actually go below. This is inevitable with this forex demo contest strategy. You should assume your rivals have losing trades.
Best advice here is to try keeping a winning position opened, but not a cost of losing a lot of potential profit. If you don’t have such a position, try at least to avoid having any open positions in the last hours of the contest.
This sound simple. It is simple. Check best tips below to enrich your forex demo contest strategy.
Forex Demo Contest Pro Advice
Below you can see 3 best advices to remember when trading on a forex demo contest! Take a note and don’t forget to add them to your forex contest strategies.
It is best to trade highly volatile instruments to achieve a fast gain (or a quick loss). The intraday volatility of an instrument could depend on a lot of items. We generally advise taking a look at forex news calendar and check what pairs or instruments are expected to make the largest move today.
Metals like Gold and Silver may experience quite some fluctuations. To make the most on fluctuations, a high leverage is required. This is why you need equal or similar to forex leverage when you trade metals. This is important, as early you should trade only with the largest leverage.
Are you in a terrible position at the last day of the contest (which is usually Friday)? Try adding one or a few crazy NFP trades into your forex demo contest strategy. This can result in high profits fast.
Check The Rules Carefully!
This doesn’t sound smart and pro, but trust us – this is vital. Some brokers may various restrictions for prize awards, like minimum volume of 10 lots. Some brokers may ask for 10% of the profit from EUR/JPY. This is of course annoying, but rules are the rules. You should know all of them and consider them in your forex demo contest strategy.
Most of the brokers will prohibit you to use more than 1 account for participation. This is a rule that is often neglected by the participants… and if you started and got a Stop Out in 5 minutes, you would want to participate again. You would be eager for revenge. To do so, you should know that most of the brokers trace your connection to MetaTrader 4. This is why you shouldn’t use the same IP for 2 different accounts. You do have a 3G on your phone, right? Just make sure you do not connect two different MT4 Accounts from a single IP address.
Information above also applies to your friends or neighbours. If you trade using the same connection, you will be banned. Looking to add the rails into your forex demo contest strategy? Make sure you have different IPs for the accounts.
Don’t Be Too Fast
Traders always try to get into the first place from the very beginning. While it can generally pay off to be aggressive, you should know that it only makes sense in the beginning. In the end of the contest, your forex demo contest strategy should be protective. After you managed to be in top5-10% of the participants, try to take only weighted decisions. Narrow the volume of your trading. Try to take more risks if you are still quite behind and the contest is about to end, but don’t run for that top3 spot straight away!
What to do now with forex championship strategy?
As now you know what the forex demo contest is and how to win forex demo tournament, check out best forex contest reviews and put your knowledge into action. Forex Bonus Lab suggest you OctaFX Demo Contest!
Also you can try Alpari Virtual Reality Contest! It is not beginner friendly, yet it has great prizes!