Quote from Lucias:
Casey
I think this is a great idea. However, you need to do several things for this to be worthwhile
1. Prize money needs to be raised to at least 8k which is about the minimum that one can start trading futures with.
2. Competition needs to be extended to about 2-4 months.
3. You need to add controls that will enforce risk management and reward those that return the highest net returns within reasonable risk/adjusted limits.
4. There needs to be some penalty for losing. Maybe add in an extra mandatory $150 fee that is returned for those that don't blow out their account or structure it so that quit with less < 30% drawdown you get it all refunded < 50% get most refunded < 60% get some refunded >80% none refunded
5. Need a daily loss limit. Maybe 15%?
6. Are your fills realistic for limit orders? Are you using a 1 tick must pass rule or a realistic volume rule?
As is, this trading competition is unlikely to find talent.
