FXCipher EA is an EA that executes grid trading and martingale trading.
It executes trades very aggressively using two types of logic.

FXCipher EA [Official Page]

Live performance (forward test results) of FXCipher EA

FXCipher EA supports 5 currency pairs. The five are AUDUSD, USDCAD, EURJPY, NZDUSD, and EURCAD.
However, the vendor has published forward test results for only one pair: USDCAD.
Perhaps other currency pairs are not showing good results.

Additionally, as of April 2024, there is a large discrepancy between the account balance and equity.

This shows that this EA is a high-risk EA that holds positions for a long period of time.

Trading strategy of FXCipher EA

FXCipher EA executes two types of grid & martingale trades at the same time.

Reference article: Martingale EA Risks and Benefits | Is it profitable?

Pattern ① – 80pips grid & martingale

• Enter the market as a contrarian.
• If the first position has a profit of 80 pips, take profit.
• If the price moves 80 pips unfavorably from the first position, open an additional position.
  Open an additional position every time the price moves 80 pips unfavorably from the additional position.
• The lot size of the additional position is twice the previous one.
• Close all positions when the profit/loss of the total position is positive.

In the MT4 trading history chart below, you can see grid & martingale trades being executed at 80 pips intervals.

■USDCAD 1 hour Chart White=Buy entry Red=Sell entry

Also, the table below provides detailed information on the trades in the chart above.
You can see that this EA trades by doubling the lot size.

The series of trades resulted in a total profit of 2236 USD.
When Grid & Martingale EAs have many positions, they often close all positions if the total position makes even a small profit.
On the other hand, FXCipher EA continues to hold positions until a relatively large profit is made.
This leads to a high rate of return for the EA, but at the same time it also lengthens the period of exposure to risk.

Pattern ② – 50pips grid & martingale(Limited to 2 position)

• Enter the market as a contrarian.
• If the first position has a profit of 50 pips, take profit.
• If the price moves 50 pips unfavorably from the initial position, open an additional position. Additional positions can only be opened once. In other words, the maximum number of positions for pattern ② is two.
• The lot size of the additional position is twice the previous one.
• Close all positions when the profit/loss of the total position is positive.

In the MT4 trading history chart below, you can see how this EA continues to hold two positions with an interval of 50 pips.

■USDCAD 1 hour Chart White=Buy entry Red=Sell entry

In the trade in the chart image above, the price fell after holding two long positions. However, as the price quickly rose, both positions became profitable. This is a favorable scenario for the FXCipher EA.

However, if the price continues to fall, the two positions will be left behind and the account will experience a large equity drawdown.

The MT4 trading history chart below shows this EA holding two short positions opened in August 2023 for four months until December.

■USDCAD 4 hours Chart White=Buy entry Red=Sell entry

The price eventually fell, but if the price had continued to rise, the equity drawdown could have been so large that the account balance would have ended up at zero.

It should also be noted that the swap caused a loss of 875 USD.

Since this EA holds positions for a very long time, losses due to unfavorable swaps will be large.

Direction of entry

FXCipher EA’s two types of trade patterns both enter in the direction opposite to the market trend.

From the long-term MT4 trading history chart below, you can see how this EA enters in the opposite direction of the market trend.

■USDCAD 4 hours Chart White=Buy entry Red=Sell entry

Backtest results of FXCipher EA

■AUDUSD

Test start	2012/1/2～
Test  end	2022/11/30
Operation period	130months
Initial deposit	10,000
Operational lot size	Adjusted by balance
Final balance	157,405
Total net profit	147,405
Rate of return (overall)	1574.1%
Monthly rate of return (compound interest)	2.1%
Monthly rate of return (simple interest)	–
Relative drawdown	49.3%
Maximum drawdown (amount)	41,542
Profit factor	1.44
Winning rate	50.7%
Total trades	2047

■USDCAD

Test start	2012/1/2～
Test  end	2022/12/10
Operation period	131months
Initial deposit	10,000
Operational lot size	Adjusted by balance
Final balance	1,549,119
Total net profit	1,539,119
Rate of return (overall)	15491.2%
Monthly rate of return (compound interest)	3.9%
Monthly rate of return (simple interest)	–
Relative drawdown	39.8%
Maximum drawdown (amount)	311,895
Profit factor	2.37
Winning rate	52.8%
Total trades	1971

■ EURJPY

Test start	2012/1/2～
Test  end	2022/12/10
Operation period	131months
Initial deposit	10,000
Operational lot size	Adjusted by balance
Final balance	941,973
Total net profit	931,973
Rate of return (overall)	9419.7%
Monthly rate of return (compound interest)	3.5%
Monthly rate of return (simple interest)	–
Relative drawdown	38.1%
Maximum drawdown (amount)	134,745
Profit factor	1.44
Winning rate	48.8%
Total trades	4807

■ NZDUSD

Test start	2012/1/2～
Test  end	2022/12/10
Operation period	131months
Initial deposit	10,000
Operational lot size	Adjusted by balance
Final balance	320,635
Total net profit	310,635
Rate of return (overall)	3206.4%
Monthly rate of return (compound interest)	2.7%
Monthly rate of return (simple interest)	–
Relative drawdown	31.0%
Maximum drawdown (amount)	61,575
Profit factor	1.54
Winning rate	50.1%
Total trades	3606

■ EURCAD

Test start	2012/1/2～
Test  end	2022/12/10
Operation period	131months
Initial deposit	10,000
Operational lot size	Adjusted by balance
Final balance	1,419,918
Total net profit	1,409,918
Rate of return (overall)	14199.2%
Monthly rate of return (compound interest)	3.9%
Monthly rate of return (simple interest)	–
Relative drawdown	49.4%
Maximum drawdown (amount)	295,470
Profit factor	1.69
Winning rate	50.6%
Total trades	2319

Backtesting of the FXCipher EA has been performed on all supported currency pairs AUDUSD, USDCAD, EURJPY, NZDUSD, EURCAD.
It shows good results for all currency pairs.

However, forward testing is only performed on one currency pair: USDCAD.

Vendor of FXCipher EA

FXCipher EA is sold by the same vendor as FXSTABILIZER and Forex Truck.

Many of the EAs they sell are a combination of grid trading and martingale. Many of their EAs make profits from total positions rather than additional entries.
In particular, Forex Truck EA, like FXCipher EA, uses USDCAD as its main currency pair.
USDCAD has recently become a market environment suitable for grid and martingale.

Conclusion of FXCipher EA

It is a high-risk EA that executes two patterns of grid and martingale trades at the same time.

One of the patterns has a maximum number of positions limited to 2, but this does not reduce the risk of this EA.
If a major trend occurs in the market, positions will be left stranded and a large equity drawdown will occur.

Although high profit rates can be expected, users should understand the risks of this EA before using it.

This article analyzes the FXCipher EA trading method and thoroughly reviews its risks.
Although this EA can be expected to have a high profit rate, users should use it after understanding the high risks and dangers.