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Currency Traders: Slowing Down?

The 3 leading contestants in the currency trading contest are like the untouchables - they have held the top spots since the beginning of July. Edward Burke, the leader in the currency contest still holds the number 4 rank within the overall trading contest with a portfolio value of $389,565.44.

Since Friday, Contestant Number 1, Burke has taken a break from trading. Although Contestant Number 2 racked up some gains over the past 24 hours to reduce Burke's advantage from 88k to 71k, he still holds a comfortable edge over his competitors.

In contrast, Contestant Number 2, Chi Ming Wong has been very active in the hopes of catching up to Contestant Number 1. He held a large long position in USD/JPY over the July 4th weekend and ending up selling it for a tidy profit at the European open around 2am ET on Monday. Almost immediately, he flipped his position and went short USD/JPY. It appears that he was watching the 200-day SMA which sat less than 20 pips below his entry price. Throughout the US trading session, he continued to go long and short USD/JPY in reponse to the sharp volatility in US equities. Interestingly enough, he also branched out to trading the EUR/USD and AUD/USD (Wong usually sticks with the Yen crosses), which ended up shaving more than 5k off his profits leaving him with a portfolio value of $317,752.09.

Contestant Number 3, Carlos Godfrey is sticking with his long EUR/USD position. He initiated it July 3rd after the dust settled following the non-farm payrolls report and ECB press conference and even though it is in the red, he hasn't given up on it yet. His portfolio value is $284,401.16

By Kathy Lien, Chief Strategist of DailyFX.com