DMC Forex Review – Neil Leitch

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    DMC Forex Review – Neil Leitch

    Click below to visit the website

    Key Info

    Publisher:  Canonbury
    Cost:  £277 with a 6 week money back guarantee
    Review Date:  December 2010 – January 2011

    What It Says On The Website

    Neil Leitch (the successful part-time Forex trader (and full time Dad)) was the author of the FTSE Wealth-Builder Trading system and now he’s back with the DMC Forex Trading system.

    Headlining with “Just Click when you hear a signal” – DMC Forex is a “simple, stress free way to profit from Forex that virtually eliminates the fear and greed of financial trading”. You “won’t have to sit by the computer for hours”, “just wait for the audible alert and you’re good to go”.

    This is a “foolproof technique” which “you can pick up and start using in just a couple of hours – even if you’ve never traded Forex in your life”, the average returns last year were £749 a month trading just one currency pair. But the best is this, “you can dip in and out of the market at times that suit you”, trade “in the morning, the evening or during the day – it’s up to you”.

    DMC Forex “shows you exactly where to place controlled stop and profit target levels”. “95% of the process is fully automated” using the secret weapon, the “trade indicator” which constantly monitors for volatility. “It doesn’t matter what currency pair or timeframe you trade or how many markets you want to trade, the special indicator works its magic regardless”.

    Note: The website explains that the average £749 per month return mentioned above is based on trading £2 a PIP and assumes a starting account of £1,000. That’s a +75% a month profit assuming you follow the “stringent risk strategy”. Truly astonishing returns!

    There is a 6 week Money Back Guarantee with this system, backed by Canonbury.

    The Material

    A 54 page manual, instructional video’s and Neil’s personal email address are provided.

    The manual is well written and on page 5 we find out that DMC stands for – Dynamic Move Catcher – It provides audible and visual alerts when certain price movements occur.

    The majority of the first half of the manual is focused on getting started. It’s an excellent theoretical walk-through and in practise it’s even easier than it sounds. DMC uses a Meta Trader 4 template and custom indicator. When signing up access is provided to an “install” file. One click on this and the whole MT4 installation process is done, an absolute doddle. Simply install, start up your MT4 platform, chose your currencies and time-frame, select the newly installed DMC template and you are good to go. Nothing to worry even those new to MT4 here, especially as there is also a useful MT4 mini-guide included in the manual.

    Note: An email and password validation check is made on first install, again, simple, painless and a one off.

    The manual continues with an explanation of what to do when a signal is issued, a definition of the Stop and Targets to use as well as how to place and manage trades.

    Trade Reversals are explained too, what to do if you get a signal in the opposing direction if already in a trade. Again, nothing complicated but something worth doing because, as Neil states “I usually do”.

    Recommended Currency pairs for trading are EURUSD, EURJPY, USDJPY, USDCHF, AUDCHF, USDCAD and GBPUSD, the preferred time-frame being 15 minutes.

    Risk of 0.2% of Bank per PIP is advised.

    The System

    It’s all about the DMC indicator.

    The indicator paints a Green (for Long) or Red (for Short) arrow and issues a visual and audible alert when a valid Entry has been identified. This only happens on close of a candle so on a 15 minute time-frame this will only occur on the hour and 15/30/45 minutes past the hour. So after an alert, trades are opened immediately at current market price.

    The Stop is displayed on the screen (as a small black dot). The Targets (two trades (lots) are opened for each signal) are calculated as defined in the manual, Stop is the same for both lots. The Targets are based on the Profit level displayed by the indicator. Target 1 is either Profit level or Profit level multiplied by 1.5 depending on the time of day. Target 2 is either twice the Profit level or Profit level multiplied by 2.5, again depending on the time of day.

    Risk:Reward typically works out at around 1:2 or 1:1.5 on each trade, depending on the time of the day (before/after 10:30 GMT).

    Can It Work

    We chose to trade the EURUSD and GBPUSD (two of the recommended Currency pairs) on the preferred 15 minute time-frame. The manual mentions 06:00 – 11:00 as being the ideal trading times for this system but due to other commitments and the fact the system can be traded “in the morning, the evening or during the day – it’s up to you” we traded between the hours of 16:00 and 19:00 UK time.

    We traded the system throughout December 2010 and January 2011.

    December 2010

    40 trades and:

    – 11 hit Target 1 & 2
    – 6 hit Target 1 and Break-even
    – 9 were manually closed for a small profit or loss (reversal trade triggered)
    – 14 lost

    For a net profit of +45 PIPs or +6% based on an average Stop of 16 PIPs.

    January 2011

    36 trades and:

    – 5 hit Target 1 & 2
    – 6 hit Target and Break-even
    – 9 were manually closed for a small profit or loss (reversal trade triggered)
    – 16 lost

    For a net loss of -155 PIPs or -17% based on an average Stop of 18 PIPs.

    To make reporting simpler we risked a fixed 2% per trade not the 0.2% of Bank per PIP specified in the manual. It means over the 8 week period we made a net loss of around -11% based on a fixed risk per trade.

    If trading more than 1 currency pair as we did it, order and trade entry/management can become a bit tricky at times especially if simultaneous alerts go off. This is compounded if you choose to apply the “Trade Reversals” process like we did and, as Neil “usually does”. Trading reversals means exiting any open positions and entering into a new trade if an opposing signal is issued. This is however easier on the recommended Capital Spreads platform than on our GKFX platform.

    Note: It is recommended in the manual to stick to 1 or 2 currencies only, this is sound advice in our opinion.

    Screen time is reduced as one just waits for alerts and knows when they are coming. Trade entry (calculating targets) although a little tricky to start with is not so difficult after a few trades.

    Performance although satisfactory in December was rather poor in January like a good many other systems. Regardless of this we were some way off the average returns specified on the website, 75%+ per month by our calculations. The caveat here is that we did apply a different risk strategy (for clearer reporting purposes) but we do not think it would have impacted significantly.

    Support

    Great and always within 24 hours, typically much sooner, manual and video’s most useful.

    Summary

    PRO’s
    • Very easy to set up.
    • Easy to read indicators, 100% mechanical system.
    • Good support.

    CON’s
    • Results were disappointing – Between the hours of 16:00 and 19:00 UK time which we traded.

    Do remember, your comments are important – If you have used or decide to use this system, please contribute to the community by reporting back your findings.

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