FXCipher EA Review

In this post I will be reviewing the FXCipher EA which is an expert advisor developed to trade the forex market in the industry standard MetaTrader platforms which you can download for free from most forex brokers or directly from the MetaQuotes website. FXCipher EA will constantly scan the currency pairs charts and timeframes that you attach it to for trading signals. When it finds a valid signal according to the algorithm implemented within the code, it will enter the market and then manage the position all fully automated. It can also be used in manual mode where you can set the MetaTrader platform to send you SMS or email notifications if the EA finds a signal. You could then decide to trade manually after your own market analysis or wait for the next trading signal.

This is another forex robot from the same development team who have a range of other forex software that I have previously reviewed including Forex inControl, FxDiverse, FXCharger, FXParabol EA, FxStabilizer, FXQuaser EA, FXConstant EA, FXHelix, FXZipper EA, FXTrackPRO, FXRapid EA, MyForexPath EA, FXGoodway EA and the Forex Truck EA.

You may ask yourself why do these developers sell so many forex robots when they claim each of them can perform so well. Surely, they should be using them on their own accounts and raking in pips rather than selling them and dealing with customer support issues.

Hopefully this FXCipher EA review will help you decide if these claims are backed up with solid trading strategies, top-quality backtests and verified real account results. We will look at the most important aspects to consider when choosing a forex robot to see if this is a forex expert advisor (EA) that you would consider running on your own trading account.

FXCipher EA Trading Strategy

The FXCipher expert advisor strategy is automatic so it does everything for you from analysing the market to closing a trade. Whilst this does make the software easily accessible to forex traders of all experience levels, it is imperative to make sure that you are first aware of the significant risks involved with any manual or automated forex system and never trade with more than you can afford to lose. There isn’t any forex robot in the world that can predict what will happen in the forex market with complete certainty.

The FXCipher EA has 2 built-in pre-sets that you can choose from. One of them has been optimized since 2010 and based on historical data. The other one has been optimized since 2017, again based on historical data. The problem with optimising robot settings so much is that you can end up over optimising a trading strategy so that the settings you develop are only good for the data set that you are using. We could more or less take any forex robot with a random combination of technical indicators and test thousands upon thousands of variable settings for each indicator until we find the best settings over a specified time period. However, this just means the strategy is curve fitted to fit the data in question. I personally prefer a trading system that is based on sound logic which can perform well on multiple currency pairs over many years using the same settings.

The developer mentions that the supported currency pairs are the following: GBPUSD, EURJPY, AUDUSD, USDCAD, EURUSD. You can choose to trade as many fx pairs as you feel comfortable with. I would personally be looking at the major currency crosses as they usually have lots of liquidity which can mean there are some good market moves. It also means that spreads tend to be tighter than some more exotic currencies and execution more reliable. You can experiment with other currency pairs if you have the skills and knowledge to do so but you may wish to start on a demo trading account to begin with and see how things go.

FXCipher EA Features

Hopefully now you have an understanding of the trading strategy being used by the FXCipher robot. Now I will take a look at some of this forex expert advisors key features.

Dynamic Trading Strategy

One of the stand out features of the FXCipher EA is that it has two built-in strategies, designed to try and adapt to different forex market situations. Trading using one of them, the EA will switch to another strategy in case of certain circumstances, in order to try and minimize the possible risks and attempt to increase its trading efficiency. This could be considered better than some other forex robots that rely on rigid trading strategies that only work in a particular market condition, such as a trending or ranging market.

MetaTrader Robot

The FXCipher EA has been developed to trade on two of the most popular forex platforms used by millions of retail and institutional forex traders across the globe – MetaTrader 4 and MetaTrader 5. This is good because it can be frustrating for some forex traders when they only use one of the platforms and a forex robot is only programmed for the other.

Optimised Settings

The EA has a special preset settings selection mode. That means that after running the robot, you will be able to choose the mode with either of the settings that have already been optimized on the developers backtests. You can of course play around with your own settings but please make sure that you know what you are doing and adjust the risk or lot size to something that you feel comfortable with.

Protection System

This automated forex software implements a special drawdown limiting system that will try to prevent the account it is running on from getting a drawdown greater than that which is specified within the EA’s settings. It is controlled using stop loss, as well as constant monitoring of the drawdown, and the emergency closing of trades forcibly at the current market prices if things get really bad which can happen in the financial markets especially when you consider black swan events can happen. A black swan event, a phrase commonly used in the world of finance, is an extremely negative event or occurrence that is impossibly difficult to predict.

FXCipher EA Back Testing

There are FXCipher backtests that show historical performance of the robot that go back to 2010 on the five currency pairs it trades: GBPUSD, EURJPY, AUDUSD, USDCAD, EURUSD. One of the main things I look at with any backtest is the modelling quality. Although the MT4 strategy tester has its limitations when it comes to backtesting (90% modelling quality max), it can be improved with external software to get 99% modelling quality. Unfortunately, these backtests are limited only to 90% modelling quality which means they are not using tick data or variable spreads. They also aren’t accounting for commission fees or slippage. Therefore, I would take these FXCipher EA backtests with a pinch of salt as these are all important factors that can make a vast different to results. I am also disappointed because Forex Store who offer this EA for sale have other forex robots that do actually show 99% modelling quality backtests so its not like they aren’t capable of doing so.

FXCipher EA Results

I must give credit to the developers for publishing and sharing trading statistics collected from a real trading account that has been verified by the independent company Myfxbook. This can help to give potential users an idea of the recent FXCipher account performance. You can see the graphs and click them for more detailed information and important stats such as drawdown, profit factor, expected payoff, profit/loss, average win, average loss, etc. Just always keep in mind, results are based on past market conditions and by no means any guarantee of what will happen moving forwards. To see the latest live verified trading account performance of all forex robots please visit my best forex robots results page.

Update 15/09/2022: It looks like they have removed one of the FXCipher Myfxbook accounts as it probably crashed and burned due to poor money management. There is one account left but that looks to have also crashed and I assume it will also be removed soon. Hopefully the developer will replace them with more up to date results on a newer version of the EA that does not use such risk money management.

FXCipher EA Summary

The FXCipher EA did have some potential, as is evident from the limited quality backtests but most important the real verified Myfxbook accounts. Unfortunately, the money management has caused some really large drawdowns that have wiped out the accounts. I personally feel the trading strategy that the robot is using may be over optimised but you can be the judge of that for yourself. Hopefully the information provided will help you to make an informed decision based on our own needs. This forex software comes with instructions, 1 license, full support, free updates and a money back guarantee. As always, you may wish to start on a demo trading account until you become familiar with how a forex robot works. Please feel free to browse my forex robot reviews for some alternative options.