In this post I will be reviewing the FXParabol EA which is an expert advisor for trading automatically in the MT4 and MT5 platform respectively. You can choose either platform and attach this forex robot to your chars to let it scan the market for trading signals, but is it any good?
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, FxStabilizer, FXQuaser EA, FXConstant EA, FXHelix, FXZipper EA, FXTrackPRO, FXRapid EA, MyForexPath EA, FXGoodway EA, Forex Truck EA, Forex Extract EA and the FXCipher 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 FXParabol 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.
FXParabol EA Trading Strategy
The FXParabol EA uses a fully automated trading strategy which means that it uses a built-in trading algorithm to analyse the charts. When it discovers a potential trading signal, it can then place, manage and close a trade on your behalf. Alternatively, you can set expert advisors in the MetaTrader platforms to just send you and SMS or email notification if you would prefer to trade manually. That way you can add your own market analysis for double confirmation of the forex signals that the software generates.
The development of the FXParabol expert advisor is based on a combination of the Parabolic SAR and Bollinger Bands indicators. These are technical indicators that works as follows:
Parabolic SAR: The Parabolic SAR is a technical indicator developed by J. Welles Wilder to determine the direction that an asset is moving. The indicator is also referred to as a stop and reverse system, which is abbreviated as SAR. It aims to identify potential reversals in the price movement of traded assets.
Bollinger Bands: Bollinger Bands are envelopes plotted at a standard deviation level above and below a simple moving average of the price. Because the distance of the bands is based on standard deviation, they adjust to volatility swings in the underlying price. Bollinger Bands use 2 parameters, Period and Standard Deviations, StdDev.
The robot uses a combination of these indicators in to try and detect a market trend and determine the opportune moment for when to start trading in the direction of this anticipated trend. There is also a special mathematical algorithm in the EA that allows it to try and compensate for losing trades. However, I find this setup too risky as it means the software does not admit when it is wrong but rather relies on potentially dangerous money management that could cause large drawdowns and even blown accounts.
The FXParabol robot has been programmed by the developers to run primarily on two currency pairs which are the USD/JPY and USD/CHF. The trading robot has a built-in money management system that can be configured according to each forex traders’ individual preferences. You should of course always only trade with a position size that you feel comfortable with as every trader is different in that aspect. The robot is compatible with any forex broker and has no limitations on the types of accounts used. It can be used on mini, micro and standard accounts.
I would personally be looking to use any forex software on a forex broker that has tight spreads on its currency pairs, low commission charges on trades and vast liquidity pools to help deliver rapid trade execution speeds at the best available forex market prices.
FXParabol EA Features
Now we know more about the trading strategy used by the software, here we will take a look at some of the key features.
Fully Automated Trading
As with the majority of forex expert advisors, the FXParabol EA is completely automated. This means it can scan the charts in your MetaTrader 4/5 platform for valid entry signals and place/manage/close trades completely hands-free. This makes it easily accessible to forex traders of all experience levels. However, it is very important that you are aware of the risk involved with using any forex robot including this one and never trade more than you can afford to lose.
MetaTrader Platforms
When you purchase the FXParabol robot, you will receive two versions of the software that work on each of the MetaTrader 4 and MetaTrader 5 platforms. You will need to download the desktop terminal of either platform to run the EA if you haven’t already. You can get MetaTrader free from most forex brokers or directly from the MetaQuotes website.
Quick Setup
This forex software includes an easy to follow instruction manual to ensure a swift setup in the MT4/5 platform regardless of your prior knowledge. It should only take a few minutes to complete the setup and there is a support team on hand to help you should you need them.
Updates
The FXParabol EA includes free updates for life. It is well known that the forex market conditions are constantly changing and it is therefore imperative that developers work hard to try and ensure their automated trading strategies stay relevant to the current market conditions. Also, you will be able to manage your license online in a dedicated members area if you wish to switch the EA to a different account.
FXParabol EA Back Testing
The development team have provided some FXParabol backtests that you can see below which show the results of backtesting of the FXParabol strategy on historical data. These results can help to give potential users an understanding of how the EA may have traded historically during the period before it was developed and started trading on a real account. The problem with these backtests are that the modelling quality is only 90% which means that they aren’t using real tick data, variable spreads and also do not include commissions. These are all important factors that can have a huge impact on trading results. I would like to see these backtests updated to 99% modelling quality which I am sure the developers are capable of when you consider they have coded this forex robot amongst many others (forex store).
FXParabol EA Results
The developer has kindly shared some verified by Myfxbook accounts that show recent performance of the FXParabol EA on 2 different currency pairs. Although the results at the time of me writing this review could be considered as slow and steady, the drawdown is quite high for my personal tastes. You can see the latest robot results in the graphs and click them for more detailed statistics. 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 the developer has not updated the Myfxbook FXParabol results for a while now. I think that is probably because the accounts have either been wiped out or were very close to being so. Hopefully they will add some more up to date accounts in the near future. Otherwise, you might want to consider another forex robot such as the Forex Flex EA.
FXParabol EA Summary
The FXParabol does have some potential which we can see from the provided backtests and importantly, the verified Myfxbook accounts. It uses sound trading logic on the face of it by combining technical indicators to try and identify the market direction and trade in line with the trend. However, it is let down by poor money management in my opinion. I think it is only a matter of time before the Myfxbook accounts end up with a margin call but that is simply my own opinion. I do respect that there are traders who are happy to take the additional risk for the potential rewards, I am just not one of them. The backtests quality cannot be relied on whilst the Myfxbook accounts have shown significant drawdowns making this EA too risky for my personal tastes.
FXParabol EA
$289
Pros
- Multiple Currency Pairs
- MT4/ MT5 platforms
- Fully automated forex robot
- Customisable settings
- Free lifetime updates
- Dedicated support
- Detailed Instructions
- Backtest results available
- Myfxbook verified accounts
- Technical indicators built-in
Cons
- Limited Backtest Quality
- High Drawdowns
- Risky Trading Strategy
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.
