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“Combination of Price Action, Professional Money Management & Multi Conditional Market Trading (Ranging/Trending) built for solid performance and low draw down with controllable risk levels”

CabEX V2.0 | PERFORMANCE REVIEW

Official Author Web Site: [Here]


  • Review Status: In Progress | Live Test Begins: 25.08.2015
  • Review Status: Completed | Live Test Ended: 26.10.2015

Minimal Supported Balance: 500$

Performance Review Mission: Educate the traders about the EA’s actual performance in the live market running by our own terminal without any access from the author of that EA. 


Editorial Introduction:

While looking around the net for low draw down (low risk) expert advisors for automated Forex trading, I found this interesting EA called “CabEX V2” what has brought my interests and attention is that developers offering long term back test, verified live accounts and the fact it adapted for both trendy and ranging markets, this is very important as that means our chance of survival in different markets is drastically higher (supposedly if it works right as promised). Furthermore, we found exciting features such as very dynamic trailing SL system, price action based trading, built in full money management and over 6 years of tick data with around 50% success rate – as you know in Forex 50% is really good figure and especially if it was verified by over six years of tick data. So… it all sounds sweet and shine, now let’s go for the details and the live test!


The EA designed to work on single currency Pair: GBP/USD


Live Performance Reports (Dev Team)


Below chart shows live trades and back-test trades from Jan 2014 to May 2015:

LIVE VS BT

This is a comparative study of trades on real account vs tick data back-test  over the same period. This gives us an idea about the reliability of the 6 year back-test shown above. If the live test trades matches the back-test trades, then it increases the confidence in the strategy. It also can make us feel reasonably confident that the EA will not be broker dependent.

The blue line shows live trade performance in pips. Gray line shows back-test performance over same period.

  • Good similarity between Live and back-test trades
  • You can rarely see such situation when live trading being better than back-test (maybe due to lower spread in live account – back-test was done using 1.5 pips)
  • Over 95% of the trades were identical

The CabEX Team Presenting: Four (4) months trading action of CabEX in 4 Minutes!


Let’s observe the key features of this EA as listed by it’s authors: 

Trading Strategy Based on Price Reactions Congestion Zones and Extremities

Price Analyzed on Hour and Week High/Low/Close values

Broker independent – Minimal difference expected between broker accounts.

Strategy can trade trends and reversals successfully

Designed for trading GBPUSD currency pair

Professional Trade and Money Management

Protective Server Side Target Price (500 pips)

Protective Server Side StopLoss (120 pips)

Hidden Target Price at 300 pips

Hidden StopLoss at 60 pips

Option to Trail StopLoss above/below first level of support/resistance

Intelligent Trailing StopLoss – excellent locking in of gains

Average Profit:Loss ratio close to 1.5:1

Trade success rate of close to 50% (over 6 year tick data backtest)

Opens only one trade position at a time – trades every signal.

No Martingale – No Pyramiding – No Pending Orders

NFA Compliant : No Hedging – Follows FIFO

Lifetime license – 2 Real and 2 Demo accounts

Lifetime support and free updates for ONE Year

Optional annual update renewal fee of US$ 35

Trades all accounts types – Micro, mini, and standard accounts

Works with 4 and 5 digits brokers

Operates on any MT4 broker – ECN, STP, NFA regulated broker

24×7 Email Support (response time less than 6 hours)

24×7 Email Technical Support (response time less than 12 hours)

Technical chat session available with prior appointment

Real money and demo reference account

High quality 99% backtest conducted with DukasCopy tickdata


CabEX V2 : Changes implementated in Version 2.0:

Changes Implemented in V2 and lab results are presented below :

Adaptive Trade Management : The EA will manage trade based on H1 closing values if the price action in the direction of trade is strong. If not, the High/Low value of the previous will be considered for triggering hidden trailing SL levels.

Improved Trend/Range recognition algorithm implemented : This enabled improve trades by providing stronger entry levels.

Protective Stop Loss (Hard broker side stoploss) set at 120 pips (300 pips in pre-launch version)

Hidden Stop Loss set at 60 pips (100 pips in pre-launch version)

Strategy tests shows V2 trade management able to handle narrow price actions and volatile periods better.

Over all tickdata back test results of V1 and V2 lool similar : A minor increase of 7% gains seen with same max DD of 22%.


Trading GBPUSD and Future Gain Potential by Creators

The table below shows the historical annual gains seen on back-tests (2007 to Apr, 2013) conducted with good quality data. The live results are being updated on a monthly basis since May 2013.


Some past results from the EA Developers:

6 Year DukasCopy Tick Data Back Test – Fixed_LotSize=0.1 (No Money Management)

Max_Allocation_Per_Trade=6; Fixed_LotSize=0.1; Protective_TP=500; Protective_SL=120; TP=300; SL=60; TL1=50; TSL1=0; TL2=100; TSL2=50; TL3=150; TSL3=100; TL4=200; TSL4=150; TL5=250; TSL5=200 (and all other custom parameters – unchanged)

6 Year Dukas Copy Tick Data Back Test – Parameters : Recommended-Default
Max Allocation: 6 (Medium Risk)

Max_Allocation_Per_Trade=6;Fixed_LotSize=0; Protective_TP=500; Protective_SL=120; TP=300; SL=60; TL1=50; TSL1=0; TL2=100; TSL2=50; TL3=150; TSL3=100; TL4=200; TSL4=150; TL5=250; TSL5=200 (and all other custom parameters – unchanged

6 Year Dukas Copy Tick Data Back Test – Parameters : Recommended-Default
Max Allocation: 4 (Low Risk)

Max_Allocation_Per_Trade=4;Fixed_LotSize=0; Protective_TP=500; Protective_SL=120; TP=300; SL=60; TL1=50; TSL1=0; TL2=100; TSL2=50; TL3=150; TSL3=100; TL4=200; TSL4=150; TL5=250; TSL5=200 (and all other custom parameters – unchanged)


The logarithmic chart given below makes both drawdown and growth equally proportionate in all periods:


Equity curve seen on 6 year DukasCopy Tick Data Backtest:


 

The v1.0 of CabEX has passed with success the tough times of year 2008 (based on dev’s tick data test):

Let’s observe the 2013 year figures of CabEX V1.0 (based on dev’s tick data test):

Official dev’s statement: It is impossible to time the markets or DD periods. At PhiBase we try our best to release any new strategy after a drawdown period is seen in recent period. This had always been our policy, which is an attempt to get members started on a winning phase. Drawdowns are unavoidable, but starting an EA during winning periods gives the member more confidence to face any future drawdown. As observed on the 2013 report, the most recent DD (about 10%) was seen between February to March, 2013 – The v1.0 (before v2.0 improvements implemented) EA has recovered from the DD at the time of release in late April.


Personal EA introduction by the trader behind this EA development:

The GBPUSD currency pair involves chaotic price movements, very sharp and unexpected spikes. These are features that are very suitable to employ short term trading startegy that can be very rewarding. The UK economy is the second largest after Germany in the Euro zone. But the pound accounts for less than 15% of daily global trading volume due to which the liquidity on GBPUSD tends to be much lower when compared to EURUSD. This lack of liquidity fuels short term price spikes that makes technical levels fail. The price action involves false break outs, fund movement to clear out stops/pending orders prior to the real deal moves.

In addition to the normal high range noise, the GBP/USD pair is also greatly affected by major US economic data. Volatility on the GBP/USD pair is very abrupt and vicious. The Pound is highly sensitive to rate decision of the Bank of England and other economic factors that affect the GBP/USD pair like the British Consortium shop price index (BRC), retail sales, trade balance, Bank of England MPC minutes and the behemoth interest rate decision by the Bank of England. The price movements are huge and the noise makes it very difficult to design automated systems that can survive this pair.

CabEX is designed to trade GBPUSD on the H1 time frame. The trading strategy is based on elimination of noise by considering only the H1 close for most part of the strategy. Hourly High/Low/Close values are considered for calculating the ranges and trade management. CabEX V2.0 adapts between manging trades based on H1 closing values and HLC values based on the strength of the current price action. This enables the EA to lock in gains while giving trades enough room to reach higher targets. Use of H1 closing values effectively filters away most part of the noise. The startegy is based on price action near moving averages – The EA identifies potential trends and reversals moves. Protective SL is placed on the server side at 120 pips and TP is set at 500 pips. These levels are very rarely allowed to be touched. The EA uses a hidden stoploss at 60 pips. Close below the hidden SL will close the trade. The hidden TP is at 300 pips. The EA has a very dynamic trailing SL system which moves the hidden SL to breakeven when the gain is above 50 pips. When the trade gains 100 pips, the hidden TSL is set to 50 pips. The levels are adjusted for every 50 pips. The EA attempts to give maximum space for the trade to work its way towards higher gains and attain a risk:reward of 1:1.5 – This is very important part of the strategy.


The Test Begins..

  1. We’ve arranged dedicated Server located in Germany high-end data center / network facility for lowest latency
  2. We have installed dedicated MT4 terminal running the default supported pair: GBP/USD
  3. For test we are using highly reputable, regulated Forex Company Server “Alpari” in demo account with 1,000USD balance to see how common trader with a medium account size will experience this EA.
  4. Testing Start Date: 25.08.2015

begin chart


So what’s Next?

  1. We will be running this Demo terminal on it’s dedicated server for a period of two months.
  2. We have connected this terminal to MYFXBOOK so everyone can see in real-time whats happening.
  3. After two months we will be able to write here an add value information to conclude our impression from this EA running on a live market for that period of time.
  4. As always, we hope that our review and real market test helps you to make your educated decision about making your right choice.

Core benefits of CabEX V2.0 as explored by the team behind this EA creation:

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IMPORTANT NOTES (By Development Team):

CabEX has a success rate of about 47% when backtested over several years. The EA has shown a worst case drawdown of about 1000 pips on the 6 year tick data backtest and such drawdowns may happen anytime in future also. The EA has the capabilty to recover strongly from any such drawdown provided the EA is run continuously and without manual intervention. The worst consecutive losing streak was for 8 trades. But the good risk reward ratio of the EA will enable the EA to recover such losses in less than 3-4 trades. The EA will have some losing months – these losses are considered part of the strategy and are not a defect in the program or logic.


Our Test Account Live Performance (Medium Risk) (Begins on 25.08.2015-26.10.2015):

Author’s Account Live Performance (HighRisk Mode):

Author’s official web site:

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