The Cash Cow Signal EA is a mean reversion trading system whose functionality is very unique although not profitable in the end. We will support this will evidence later on.
In this Cash Cow Signal review, we will also reveal how it works and why it might not be your ideal trading system.
This developer chose a funny logo to represent their Cash Cow Signal EA business — which adds an element of fun to the business. We don’t have any problem with this.
Also, the developer says that Cash Cow is designed to automate operations 98% of the time, although some operations are conducted by human.
The fact that it is a signal service may also suggest that the Cash Cow Signal EA trading system could be copying trades from a master account and mirroring them into a client’s account. It is not very clear whether this is purely an expert advisor or a signals service.
The developer says that this trading system uses the concept of mean reversion. The idea is that every market should revert to its mean price after any slight or strong price move.
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The closest example is the moving averages (MA). Open a currency pair chart, set it to any time frame and include moving average indicator.
Once you’re done, you can choose relatively small periods like 9 or 15. After some time, you will realize that price momentarily moved way from the MA and back to it again.
That is basically how the Cash Cow Signal system works. What we could not determine is the method used to determine which moving average to work with as well as the distance that price has to be in order for this system to open a new position.
Generally speaking, a contrarian approach of trading is never a very reliable way to trade. The price on the chart will always meet the MA. If the market is trending in either direction, this meeting point may occur at a place that is far away from the entry price. What we mean here is that instead of price meeting the MA, the vice versa may happen.
With that in mind, we can comfortably figure out that this system uses a grid-like strategy to recover any losing positions that it may have opened.
As you can see on the screenshot above, price continues to rally while the Cash Cow Signal system keeps opening short positions.
You can also see that Cash Cow Signal EA is not following a perfect grid trading strategy since the entry price is not separated by intervals.
Also, this EA tends to increase the volume of trades, although these instances are far apart. For instance, in the above image, the system increased the volume of the trade on the 5th position after the market had experienced a relatively calm period which also allowed the moving average to catch up with the price.
With regards to the risk management aspect of Cash Cow Signal, we could say that this is not a very simple operation. The website says that they struggle to keep draw down below the 10% mark.
Moreover, it seems that this system enforces a ”hard-stop” level in the event of an account falling below a certain amount. In this case, all positions are closed at once.
Technically speaking, this function eliminates the risk that comes with grid-based trading. This saves an account from getting blown up. But you are sure to suffer the losses when the market moves sharply contrary to the expected direction.
It should be noted that the Cash Cow Signal account on myfxbook halted its operation on 8th August. This is a little bit suspicious because we thought that such a system deserved to have an active myfxbook account for purposes of verifying whether or not the alleged results were true.
It is therefore impossible to follow these signals in real time. However, we shall still work with the current myfxbook data.
According to this chart, Cash Cow Signal EA has been running for one and a half years. The precise gains for this system is hard to grasp.
This developer appears to have conducted many deposit and withdrawal transactions in the course of the testing period. This ruins calculations in the end, thus making it impossible to form a good opinion on the said product.
Now, you should know that this is a sign of a manipulated myfxbook chart. It is a huge red flag. Also, if you consider the fact that this testing was stopped on 8th of August, you will begin to understand why disparity exists here.
Also, this chart shows that Cash Cow Signal experienced big jumps in the early days. Do you know why?
Well, this happens when the developer makes a deposit on the account that is being traded. It is not due to trading activities.
Generally speaking, profit gains are smooth with the exception of a few setbacks here and there.
What we observe here is that these gains appear to be so smooth that trusting the graph becomes impossible. This also shows that Cash Cow Signal comes with a risk of yielding significant losses in a gradual way. It could also explain why this testing was stopped.
This account service is dubbed ”Keystone managed account service”. They work with IC markets broker to trade the Forex market.
The website says that these account managers use the same strategy implemented by the Cash Cow Signal EA but with the addition of one strategy that will supercharge your account growth.
That strategy has not been mentioned. They also demand that for a client to open a managed account with them, they must be willing to invest a minimum of $10k. No subscription fee will be charged. Also, the account will attract a performance fee of 25% on equity growth.
This developer does not talk about the principle of high water mark fee, and this means that clients risk being charged a fee even if their accounts drop below a certain amount.
It also worries us because if these account managers are going to implement the strategies of the Cash Cow Signal EA, then clients should have all the reasons to worry about their investments. We have already explained why.
The Cash Cow Signal system performs very poorly in this department. That number is at 0.9, although it’s worth mentioning that this EA has traded XAU/USD. That means that this number should not be relied on. Any robot whose pips per trade is 3 or below is a risky product.
This proves that the Cash Cow Signal EA is not a reliable system. And if you couple this evidence with the things that we have mentioned above, you will understand why we are against it.
No need to try this system for $29. Equally, there is no need to subscribe at $75 per month because this system is just crap. You can take it to the bank when we say that this is yet another bogus internet product. Meanwhile, your trading should be safe and profitable with these products.
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