Eminence Trading Review Update – From Promising Returns to Costly Drawdowns
This is an edit of a previous review. The experience with Eminence started out phenomenally. There were double digit returns. I broke even in less than 45 days. We just kept making money, until we didn't. In October, the traders running the algorithm placed a couple of massive trades on the system. To their credit they were right about them. The trades went to within 1 pip of the TP mark. And then they turned. The traders lacked the discipline to admit the profits got away from them and then allowed a 2.5% profit trade to turn into a nearly 35% drawdown. There was an equity protector in place that was to close all trades in the event of a catastrophic failure like this, but they kept closing trades and realizing losses to keep from hitting it. When it was all over nearly a month later, the equity protector hit and nearly 50% of the portfolio was gone. This type of experience would teach anyone a lesson right? Well last week, after lowering the equity protector to 15% they did the exact same thing again, closing trades and realizing losses to prevent hitting it. When it was all said and done, 25% of the portfolio was gone this time. This was the direct result of the head trader being wrong about a trade and not getting out of it. In fact, they entered 7 additional equal positions of the same initial bad trade. The downfall of Eminence is the arrogance to think that it does not need to respect the market. There are no stop losses on any trades. There is a blatant refusal to even consider they may be reading the market wrong when manually trading. They consistently let trades that are in profit go to drawdown because the profits weren't as big as they were aiming for. And in the last bit, they have introduced new assets that were never in the original agreement. Beware the 5 star reviews, they are left after email pushes asking for reviews immediately after a winning trade. In the past 6 months, they have produced two massively negative months and a month that posted only a 1% gain due to their constant drawdowns. I don't know what went so wrong, but it appears to be that their algo was overfitted for the market last year and is suffering poorly now. This has led to questionable decisions in the manual trading space. Eminence used to be so good, but you are better holding cash and picking up cheap securities in this market.