Website : Daily Cash System Website
Publisher : Hugo Lawrence via Agora Publishing
Cost : £495 with a 10 week Money Back Guarantee
Review Date : June 2011

WHAT IT SAYS ON THE WEBSITE

The USP for this product from Hugo Lawrence is this - “No need to sit around and wait for a trade: just set this simple ‘trade alarm’ and when it goes off, jump online and tick two boxes ... If they’re both ticked, you place a tiny trade”, a “simple no-stress strategy”.

The strategy “is designed to enable you to profit each and every day” and “you don’t need any experience at all”.

The Daily Cash System is based on “very quick and very simple ten point trade(s)” with “a strict Stop loss of 20 points” and “never risk more than 3% of your bank”.

The cost of this system as mentioned above is £495 and it comes with a 10 week Money Back Guarantee personally backed by Darren Hughes at Agora.

THE MATERIAL

A 100 page manual and 2 DVD’s delivered in the most eco-unfriendly packaging we have yet to experience, why oh why?

The first DVD, the Basics Of Trading, is what it says on the tin, albeit nothing much to excite. Usual subjects are covered; Setting up your charts, Support & Resistance, Trend lines, Fibonacci, Chart patterns, Etc. Just under an hour in total and may be of interest to some that are completely new to trading.

The manual starts off by emphasising some of the points made on the sales page. We discover the key instruments to trade are the FTSE, DAX and the Euro, due to their low spread (1 Point/PIP – For convenience we will use the term PIP from now on regardless of whether we refer to an Index or a Currency). Target is 2 x 10 PIP winners a day with a 20 PIP Stop at 3% risk per trade. Timeframe of choice is the 10 minute one.

Chart set up is covered over the next dozen or so pages (and is also explained in the introduction of DVD 2). Four indicators are used; Exponential Moving Average, Smoothed Repulse (new one to us but available on IG Index “Advanced” charts), DMI and Pivot points. We found set up quite straight forward and when performed in conjunction with the DVD we would be surprised for anyone to experience any difficulties.

The Entry rules are then explained (Stops/Targets have already been covered, fixed 20/10 respectively). DMI criteria must be met first, the “trade alarm” (full, easy to follow instructions on how to set the alarm up are provided in the manual and DVD 2). Next requirement is for specific Price action to occur around the EMA plus the Smoothed Repulse must confirm (the “jump online and tick two boxes” criteria). There are also some, quite valid, discretionary additions such as: Candle formation observation, Distance to previous Support & Resistance (Horizontal, Trend-line and Pivot points). The discretionary aspects cloud things slightly but so far, so good, easy to set up and an 80% or so mechanical trading system.

Reading through the rest of the manual at this stage though started to confuse. Support & Resistance lines on the example charts: some were drawn where we expected to see them, some were drawn where we didn’t expect to see them and, at times, none were drawn where we expected to see them. A little later in the manual, Divergence and Break-outs are also added into the “discretionary” mix. We decided to turn to DVD 2.

As mentioned above the introduction to DVD 2 (first 10 minutes or so) is devoted to chart set up and makes set up even easier than just following the manual. The rest of the DVD provides Entry analysis on historic 10 minute charts, already marked up prior to the video being recorded. Things start off OK, except in the first example the Horizontal Support & Resistance (S & R) line from 5 hours previous has been ignored. As we progressed, the selective drawing of Support & Resistance became even more confusing. This came to a head when an Entry on 9-Nov just after 1120 was negated because it took into account a Horizontal S & R line drawn at 1200 that same day – That’s a Horizontal S & R line drawn on the chart in the future!

We did continue with the rest of the 1 hour DVD and when it changed from the DOW to GBPUSD we decided to analyse every trade, our observations are as follows.

12-Nov
1. Short Trade – Just after 0100 taken – Horizontal S & R from couple of hours previous has been ignored.
2. Short Trade – Between 0400 & 0500 taken – Agreed
3. Short Trade – Just after 0900 taken – Ignores the fact that the Entry candle is greater than 20 PIPs - Horizontal S & R from a couple of hours previous has also been ignored.
4. Short Trade – Just after 1500 ignored – Even though it meets Entry criteria – Reason it was ignored is not explained but it could be because it is against the main trend – However, this had not been applicable in all cases previously (during the DOW “walk through”) and did not affect the winning trade, see point 6, being taken.
5. Long Trade – Just before 1600 taken - Horizontal S & R from 1 hour previous has been ignored. This is despite the fact the Price action around 1700 is the exact same as that around 1500 (Horizontal S & R drawn at 1700 but not at 1500).
6. Short Trade – Just after 1700 taken – This is against the main trend and was marked as a winner – The Horizontal S & R from 1500 – 1600 has also been ignored.
15-Nov
7. Short Trade – Between 0300 & 0400 taken – Agreed.
8. Short Trade – At 0700 taken – Agreed
9. Long Trade – At 1000 – This is against the main trend again – So Agreed if that’s the rule – However, trades from points 4 and 6 require clarification.
10. Short Trade – Just after 1100 taken – Agreed
11. Short Trade – Just after 2000 taken - Horizontal S & R from 1600 – 1800 has been ignored. Valid Entry (in our opinion) is actually just before 2100 on break of previous Horizontal S & R (but this Entry would have lost) – This is based on applying the same rules as per the same situation for the trade in point 7.
16-Nov
12. Long Trade – Just after 0100 taken - Horizontal S & R from 5 hours previous has been ignored.
13. Short Trade – Just after 0300 ignored – Perhaps because of Horizontal S & R from a couple of hours previous or because it’s against the main trend – Nevertheless it has been ignored without comment.

Granted, the above may only be of real interest to those who have already bought this system. We mainly wished to openly illustrate how our interpretation of the strategy differed significantly to that of the vendor.

THE SYSTEM

This is a system which, to begin with, seems to have some merit. Set up is easy, Entry appears to be reasonably mechanical (about 80%) and Stops and Exits are fixed, albeit at a very poor Risk:Reward. We had a pretty solid rule base defined, according to the manual, until we watched DVD 2. Watching through the video examples (3 times) we were left questioning our interpretation of Trend and S & R lines – One thing was certain though, we will never be able to draw them based on prices in the future.

In our opinion this is not a case of waiting for a “simple ‘trade alarm’”, “jump(ing) online and tick(ing) two boxes”, nor is it ” a “simple no-stress strategy”.

CAN IT WORK

There is just way too much discretion and ambiguity here as demonstrated in our detailed walk through of the GBPUSD examples in DVD 2. For us to provide any kind of analysis on the performance of this system would be nothing more than a reflection of our interpretation of the rules and our trading experience.

Of course, some people may, as the vendor obviously does, make this system work as demonstrated in the manual and the video examples. Perhaps we could!

However, it is not our intention to take commercial discretionary systems, make them work (or not) by applying our experience and writing a review – That serves no purpose. We feel it more appropriate to report our observations without a set of discretionary results which we suggest, no one would replicate, even the vendor.

SUPPORT

We had no reason to contact support so cannot comment.

CONCLUSION

PROs
• Easy to set up.

CONs
• Way too discretionary.
• Poor Risk:Reward.
• Requires IG Index “Advanced charts”.

Do remember, your comments are important, if you decide to purchase this system, please support us by using our link and by reporting back your findings, both are valuable to us and the service.

Good review . There are lots of alerts but I reject most because of S&R , Pivots , Candles etc and the few I have taken have had very mixed results . Not worth the investment - and I have tried hard with this one . About to ask for a refund .