NCM Signal(NCM Conservative on myfxbook) Review – SCAM?
- Copy trade with monthly fee
- Trading strategy is scalping in Asian session and martingale.
- The forward test is great, but there is a risk of a big loss in one shot.
Basic information of NCM Signal
|Trading style||Martingale & Scalping|
It combines automatic trading and manual trading.
The trade results from February 2018 have been published on myfxbook and are attracting attention.
It is not an EA and cannot be purchased.
It is a copy trade service for a monthly fee of $39.
The affiliated broker is IC Markets. If you use any other broker, the monthly fee will be $79.
Broker：IC Markets(Real account)
(As of July 19, 2020)
|Lot Size||(Adjust according to balance)|
|Total rate of return||+261.6%|
|Monthly rate of return (compound)||+4.5%|
|Profit trades (% of total)||81.0%|
The monthly rate of return is 4-5%, which is not bad. Also, the drawdown is low.
If you look only at this result, you can say that it is a wonderful result.
However, it is important to note that the basic strategy is martingale trading, which can cause a large loss in one shot.
Also, the expected monthly rate of return is 4-5%, so a minimum deposit of $1000 will result in a monthly profit of $40-$50. The monthly fee is $39, so there is almost no profit.
There is no point unless you prepare a slightly larger balance.
Trading Analysis-Asia Session Scalping
NCM Signal has a strategy that combines scalping in Asian sessions with martingale.
Between 22:00 and 24:00 MT4 server time (GMT+2/3), it opens a position with contrarian.
This time zone tends to be a small range market. Suitable for contrarian scalping trades.
In the MT4 trading history chart below, you can see that it made a short-term contrarian entry and a small pips profit.
■GBPCAD 15M White＝BUY RED＝SELL
If the price moves favorably after entry, take profit will be achieved at about 10 pips.
On the other hand, if the price moves unfavorably from the entry, wait for the price to return to near the entry point and close the position with break even.
Trading Analysis-Martingale Trade
If the price moves significantly backwards from entry, it will open additional positions with increased lot size. That is, the martingale trade is adopted.
■GBPCAD 30M White＝BUY RED＝SELL
Lot size increase rate
The lot size remains the same until the 3th position.
Lot size increases from the 4th position.
The 4th position is 3 times larger than the initial lot size and the 5th position is 6 times larger.
Compared to the initial lot size, the 4th position is 3 times and the 5th position is 6 times.
|No.||Open Time||Close Time||Size||Type||Item||Price||Price|
|(1)||2020.03.18 22:00||2020.03.18 23:03||0.02||Buy||GBPCAD||1.68707||1.67138|
|(2)||2020.03.18 22:08||2020.03.18 23:03||0.02||Buy||GBPCAD||1.68245||1.67138|
|(3)||2020.03.18 22:20||2020.03.18 23:03||0.02||Buy||GBPCAD||1.67795||1.67138|
|(4)||2020.03.18 22:57||2020.03.18 23:03||0.06||Buy||GBPCAD||1.67323||1.67138|
|(5)||2020.03.18 23:01||2020.03.18 23:03||0.12||Buy||GBPCAD||1.66428||1.67141|
Martingale pips width
The pips interval for additional entries is approximately 45 pips.
Each time the price moves unfavorably 45pips from the previous position, we will repeat additional entries.
Since it is a scalping trade, the trading frequency is high.
It trades once every 1-2 days.
The target currency pair is GBPCAD only.
Martingale trades generally target currency pairs with stable price movements such as EURUSD and AUDUSD, but NCM Signal targets GBPCAD, which is relatively volatile.
Stop loss & Balance protection function
Since NCM Signal uses the martingale trade, there is no stop lost for each position.
Alternatively, you can specify the maximum drawdown percentage in the signal settings. All positions will be closed when the drawdown reaches the specified value.
If the maximum drawdown is set too low, small losses may occur frequently and you may lose in total.
In the NCM Signal master account published on Myfxbook, the balance protection function has never worked. So the balance has never decreased.
However, don’t misunderstand that it is an unbeatable system.
It should be recognized that if prices continue to move in one direction, there can be a large drawdown.
Summary of NCM Signal
It seems to be steadily accumulating profits.
However, because Martingale is used, a large loss may occur in one shot in the future.
You can specify a maximum drawdown value, but it’s a risky service.
Moreover, the average monthly rate of return is around 4-5%, which is not high. And the monthly fee is $39.
You can’t expect a decent profit with a balance of around $1000. You need to prepare a larger balance.
However, you should carefully judge whether you should deposit a large balance for risky trades.
It’s better to buy a Martingale EA than to pay a monthly fee.
I do not recommend this NCM Signal copy trade.