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2024/08
Ye Qingjun: The "Southern Emperor" of the Chinese futures market
Ye Qingjun, born in 1969 in Ningbo, Zhejiang, is a celebrated figure in the Chinese futures market. He has earned titles such as “Ye Dahuo,” “China’s Soros,” and “Southern Emperor of the Futures Market.” He is recognized as a pioneer in the industry and a central figure of the Ningbo Limit-Up Daredevil Team.
Early Career and Initial Success
Ye Qingjun started his career as a futures trader at a futures company, where he developed a keen interest in capital operations and investment. He integrated K-line theory, Dow Theory, technical analysis, and fundamental analysis, creating his trading techniques.
In 2003, Ye sensed a turnaround in the domestic futures market. He mortgaged his property to gather 100,000 RMB, preparing for a significant trade. He meticulously analyzed the market and predicted a bull market in agricultural products, particularly soybeans. His prediction proved accurate as soybean prices surged from 2,200 RMB to 4,000 RMB, boosting his account to 5 million RMB and establishing his reputation in the market.
Achieving Billionaire Status with Cotton
2010 was a landmark year for Ye Qingjun. With his macroeconomic insights and understanding of the cotton market, he predicted a global bull market in cotton. He invested heavily in long positions, and the market responded with a dramatic price surge, doubling in just two months. By the end of the year, Ye’s assets had reached tens of billions, solidifying his status as a billionaire and a key player in the domestic investment circle.
Ye Qingjun’s Team
Ye Qingjun’s success is partly attributed to his mysterious team of about 40 people, including a disabled analyst, the Grassroots Military Advisor, renowned for his accurate predictions. Ye’s major investment moves were often based on advice from this advisor.
Ye Qingjun’s Trading Principles
1.Trend Confirmation
The best evidence that the market is about to rise or fall is that it is already rising or falling.
2.Mid-Term Trend Alignment
Open positions only in the direction of the mid-term trend. Go long or stay out during bullish alignments, and go short or stay out during bearish alignments.
3.Liquidity and Volume
Trade only in instruments with high trading volumes and good liquidity. Go long on the most vital instruments and short on the weakest.
4.Instrument Neutrality
Do not prefer any particular instrument. Choose based on profit potential alone.
5.Profit Management
After several market victories, the company withdrew 40% of its profits to cover unexpected needs. If losses exceed 5%, reduce the initial position size by half.
6.Risk Management
Set stop-loss points and amounts before each trade. Any trade loss should not exceed 1% of the total capital. Use space stops to prevent unexpected events and avoid relying on luck.
7.Position Sizing
Add to winning positions only. Use pyramid-style position sizing when adding positions, and always set stop-losses for added positions.
Conclusion
Ye Qingjun’s journey from a futures trader to a billionaire is a testament to his meticulous analysis, strategic risk management, and disciplined trading principles. His ability to adapt to market conditions and his strategic use of a skilled team has made him a legendary figure in the Chinese futures market. Traders can learn valuable lessons from his principles, particularly the importance of trend alignment, liquidity focus, profit management, and disciplined risk management.
