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The year was 1987, and Larry Williams set out to make history. Larry entered the World Cup of Traders to prove his personal method was not only effective, but that it was the best. The competition lets traders compete to track who can gain the most money in one year when they all start with $10,000 dollars.
One of Larry’s advantages was he studied the Commitment of Trader’s (COT) reports released by the Commodity Futures Trading Commission (CFTC). Volumes of Long (Buying) and Short (Selling) positions for common commodities are released to the public weekly. More importantly, this report separates the Commercial Institutions and Hedge Funds new positions from the Non-commercial and Unreported buying and selling. The Non-commercial, and others are the random noise.
If there is a large movement downward or upward in a commodity price, followed sharply by an increase in buying or selling volume from the Commercial’s, it may be wise to take interest and mimic the Commercials. At the twelve month mark when the World Cup of Traders competition ended, Larry proved net gains of 11,376%.5
Talk about an outlier. The next highest return since the tournaments inception was not within 10,000%. That’s a difference of over ONE MILLION dollars all in one year. The market condition in 1987 had everything to do with his returns, but the returns had everything to do with his tactics.
Ten years later, his daughter won the same Contest and closed on the 12 month mark up 1,000%. He claims to have made millions multiple times trading, and there is every reason to believe the claims are substantiated.