Cash Cow your thoughts?

I saw this EA on myfxbook and its low drawdown and high returns interested me and I wonder if anyone knows of this EA and what they think of it?

Cash Cow Signal System by Cash_Cow | Myfxbook

I don’t think that the drawdown is a true reflection. That number only gets updated end of day. Here’s a trade that had drawdowns in the the 1000’s. Bit of gridding here:


Hello,

Just to clarify, the drawdown was kept low due to a high amount of positive open positions, not because of myfxbook updating once every 24 hours. We do use a grid regarding out entry (placing many smaller trades at key levels vs one large trade), but we also keep our open drawdown limited to 3-5%. Our entry and exit logic is the most important aspect of Cash Cow and is the reason we have a positive trading expectancy. A grid system usually has little or no entry or exit logic and simply tries to pick up pips when the market is ranging. As a consequence the trading expectancy is negative which means the system cannot be long term profitable.

I’m not trying to refute what you said, I simply want to point out that Cash Cow has a positive trading expectancy and does not use a grid to mask an unsuccessful strategy by risking our entire account. We simply use a grid to spread our exposure over a group of small trades vs using one larger trade when entering a position. If we get it wrong, all the smaller trades will close the same way one large trade that hit a stop loss would close.

regards,

CC

Interesting, so you actually have a limit for what can be lost.

so you risk 3-5% per group of positions? How many groups of positions do you have open at once? How much are you risking at any given time?

We risk a maximum of 7% per month and we keep total floating drawdown under 5%. Usually we take losses between 3 and 4.5%.

In order to avoid issues with compounded risk due to running multiple pairs, we close all trades that are open if floating drawdown reaches this level.

regards,

CC

This account set off my lottery/fraud/gambling/overleveraging detector.

Notice that over 90% of the returns came from 11 trades and all of those trades were placed within an hour of making the 5000$ deposit and at nearly the exact same time? The largest lot sizes traded were also from those same 11 trades.

That would mean that his first set of 11 positions was trading at 110 $ a pip which would mean that if the price moved 40pips north it would wipe out that account. This trader just got extremely lucky but if he can repeat this miracle consistently I would be interested in learning more.


In all honesty these trades were larger than we normally place. Usually the very largest trade we would place is 0.26 lots per $20,000. This account was trading with $5,000 and was receiving trades of 1.0 lot. So risk was with out a doubt elevated.

We did keep our drawdown low even with the larger than normal trades.

Why did we increase the risk when we started? Because it is very hard to get noticed without having something extraordinary for people to talk about. There is no doubt we have a lot to prove and this can only be done with time.
We are not asking anyone to join us. The account only has one month of trading history and that is way to small of a live trading sample for anyone to consider joining. We just want to answer questions about our strategy and to continue to build history.

What I can say is that our strategies (both manual and automated) have a positive trading expectancy and work well in most market conditions, but once again, this can only be proven with time.

regards,

CC

I dont think its a good idea to try and hustle clients like that, they are more likely to give you a bad review when the results you deliver to them are nothing like what they were expecting.

Real success comes with time.

I agree that success comes with time. We clearly state our monthly goal ROI is 5% on our website, which I consider good taking into account we risk a maximum of 7% monthly.

Thanks for the input plork. We will keep building history.

CC

The results are impressive and attractive mainly due to the DD, however 1month+ record track is not an ideal rating index.

From the other hand, i did a basic calculation on how your service can be profitable based on your “so called” confirmed 5% profit a month.

The subscription fee for one month is USD 110 and the hosting (VPS) costs USD 25 which will be totall of USD 135 as cost of your service.

It means there must be a minimum of USD 2700 EQUITY to just cover the monthly fee of your service. And if Im looking for a net profit of USD 500 a month i should have USD 10,000 of equity for just USD 500 a month.

I believe your subscription fee for 5% a month is just too much and should be revised to make some sense, there are few legit signal providers which could earn confirmed 800 to 1200 pips a month based on their 2 years record track and their subscription fee is almost the same as yours.

It has been a slow trading week so far, but at least the ECB news has passed. We should begin trading again tomorrow, once the market settles down a bit. Mean Reversion and Central Bank announcements don’t mix…

regards,

CC

Trading news like that would have been absurd.

I had a feeling the big boys would kill off the little dinosaurs

Correct, our system does well when support and resistance levels are respected. Our system struggles with strong one directional movements.

So we are avoiding the FOMC tomorrow. We may place a manual trade or two if the conditions are right.

regards,

CC

FOMC and ECB have passed. Seems the EURUSD will be headed higher. We have returned to normal trading operations and look forward to a profitable month of trading.

regards,

CC

Can you give some examples of these legit signals you are talking about please?