In this year’s national futures live trading competition, an under-the-radar trader emerged with exceptional performance and disciplined execution, securing third place in the prestigious weight division. Known by his trading account name “Ma Xiaoxi,” Ma Lingyun has captured attention not only for his rapid rise but also for his methodical and risk-aware approach to futures trading.
With just over a year of experience in the futures market, Ma Lingyun’s journey reflects a powerful blend of adaptability, learning agility, and emotional resilience. His background in stock trading provided him with foundational investment knowledge, which he effectively transferred to the fast-paced world of futures. In August 2023, a chance encounter with futures trading sparked his interest—and within a year, he turned a 300,000 RMB starting capital into tens of millions through strategic trades grounded in value investing principles and solid fundamental analysis.
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A Humble Start with High Ambitions
“This was my first time participating in a live trading competition,” Ma Lingyun shared. “I signed up to test myself—to see where I stand among other traders and to grow alongside them. I’m grateful for the platform the competition offers, where traders can showcase their skills and exchange ideas. During the event, I met many like-minded individuals who share the same passion.”
Despite being new to competitive trading, Ma’s performance was anything but ordinary. His ranking fluctuated dramatically throughout the contest—from dominating the precious metals category to drawing widespread attention for his bold yet calculated moves in the Containerized Freight Index (Europe Line) market. These shifts underscored the volatile nature of futures markets, where fortunes can change overnight.
Yet through it all, Ma maintained a calm and composed mindset. “When I first appeared on the leaderboard, many people started watching my account,” he recalled. “When drawdowns happened, I stayed steady—it was others who seemed more worried than I was.” This emotional discipline allowed him to avoid impulsive decisions and remain focused on his long-term strategy.
Learning from Early Mistakes: The Power of Position Sizing
Ma’s initial foray into futures began with medium-sized trades in粳米 (jasmine rice) futures while learning the ropes. But his breakthrough came during the launch of lithium carbonate futures—a market he was well-prepared for due to his prior research on photovoltaic, new energy, and battery sectors from his stock trading days.
He successfully capitalized on a major downward trend, earning what he calls his “first real profit” in futures. However, success was quickly followed by a painful lesson. Riding high on momentum, he kept adding to his winning position—a classic case of profit-scaling without proper risk control.
“At one point, my account balance hit 3 million RMB,” Ma admitted. “But greed took over. I held too large a position and didn’t scale out early enough. By the time I exited, my equity had dropped to 1.2 million. That was the market teaching me a hard lesson.”
This experience became a turning point. It instilled in him a deep respect for risk management, position sizing, and emotional control—principles that would define his future success.
Mastering the Container Freight Index: Timing, Patience, and Restraint
After that setback, a friend introduced Ma to the relatively new Containerized Freight Index (Europe Line) futures contract. At the time, the index was trading around 900 points. Then came the Red Sea crisis at the end of 2023—an event that reminded Ma of past shipping disruptions that caused freight rates to spike.
“I remembered how one stranded ship once blocked the Suez Canal and sent rates soaring,” he said. “When the Red Sea tensions triggered a price surge in this contract, I entered at the limit-up price—but cautiously.”
Applying what he had learned from his lithium carbonate trade, Ma used only 30% of his capital to buy 77 contracts. By year-end, that position had grown to 5 million RMB in equity—a tenfold return on risk.
“I’m extremely glad I didn’t add more,” Ma reflected. “There were sudden margin hikes and position limits that caused wild swings. If I’d been over-leveraged, I wouldn’t have survived those drawdowns.”
Navigating Drawdowns with Tactical Flexibility
During the competition, Ma faced another significant challenge: a prolonged downturn in the CFI (Europe Line) December 2023 contract as freight rates declined from August to October. His long position suffered continuous losses.
“I realized I’d entered too early,” he admitted. “But I didn’t want to give up. With position limits restricting adjustments, I adopted a ‘double open’ strategy—adding short positions while keeping my longs—to stabilize my exposure without increasing capital usage.”
This tactical move allowed him to weather the storm emotionally and financially. When prices eventually rebounded, he exited all shorts at lower levels and rode the recovery higher—turning near-loss into substantial gain.
“It felt like waking up from a dream,” Ma said. “That moment deepened my respect for market complexity and unpredictability.”
Core Strategy: The "Low-Multiple" Profit Scaling Approach
Ma Lingyun’s methodology centers around what he calls the “low-multiple long” floating profit scaling technique—a conservative version of pyramiding that emphasizes small initial entries and cautious additions only after confirmation of trend strength.
Key elements of his strategy include:
- Light initial positioning: Never exceeding 30% of capital on any single idea.
- Add only with floating profits: Only scale in when the trade is already profitable.
- Never exceed 60% total exposure: Even in high-conviction scenarios.
- Strict stop-loss discipline: Exit immediately when fundamentals shift—even if price hasn’t caught up.
- Focus on high-clarity markets: Prefers newly listed contracts with clear supply-demand imbalances and transparent drivers.
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Wisdom from Experience: Know Your Limits
“Retail traders must control position size,” Ma emphasized. “Avoid overtrading. Wait for high-probability setups. When you're wrong, cut losses fast—be decisive.”
For Ma, decisiveness isn’t panic-driven—it’s rooted in preparation. Before every trade, he asks himself:
- What’s the worst-case scenario?
- Can I afford the loss?
- Do I have dry powder left for potential re-entry?
“This prevents you from being trapped by poor judgment or excessive leverage,” he explained.
He also stresses continuous learning: “Markets evolve. Geopolitical risks affect freight rates; policy shifts impact commodities. Stay informed, adapt your system, and always plan ahead for black swan events.”
Final Thoughts: Staying Within Your Circle of Competence
Despite his meteoric rise, Ma remains humble. “I’ve only been trading futures for a short time,” he said. “I choose instruments that are newly listed, logically straightforward, with clear upstream-downstream dynamics and visible conflict points—ones beginners can grasp.”
His advice? Trade within your circle of competence. Earn only what your knowledge allows.
Frequently Asked Questions (FAQ)
Q: What does "low-multiple profit scaling" mean?
A: It's a conservative pyramiding strategy where traders start with small positions and add gradually only after achieving floating profits—ensuring lower average risk and better psychological control.
Q: How did Ma Lingyun manage drawdowns during volatile periods?
A: By using partial hedging ("double open") strategies and maintaining low overall leverage, he preserved capital during uncertain times without abandoning strong long-term convictions.
Q: Why does Ma prefer new or simpler futures contracts?
A: Newer contracts often have clearer narratives (like geopolitical shocks or supply crunches), making them easier to analyze for traders still building experience.
Q: What role does emotion play in Ma’s trading style?
A: Emotion is minimized through strict rules—especially around position sizing and stop-loss execution—allowing him to stay objective even during sharp market moves.
Q: How important is fundamental analysis in his strategy?
A: Extremely important. Ma relies heavily on understanding supply-demand dynamics and macro drivers before entering any trade—especially in markets like freight indices or commodity futures.
Q: Can beginners replicate Ma Lingyun’s approach?
A: Yes—with discipline. The core principles—small entries, profit-based scaling, and strict risk control—are accessible to all traders willing to prioritize consistency over quick wins.
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