Forex Enigma EA is an EA that executes trades that combine grid trade and martingale.
The trading strategy is simple.
| Price | $149 |
| License | 1 account per license |
| Currency pair | EURCHF or multiple pairs (USDCAD, AUDCAD, AUDUSD), (EURUSD, GBPUSD, EURGBP) |
| Terminal | MT4, |
| Money back guarantee | 30 Day Money-Back Guarantee |
Live performance (forward test results) of Forex Enigma EA
Forex Enigma EA forward test results are published on FXBlue. However, FXBlue may not reflect the equity balance correctly.
On the vendor’s sales site, this EA is described as follows:
Works best on one pair EURCHF or multi pairs (USDCAD, AUDCAD, AUDUSD), (EURUSD, GBPUSD, EURGBP) on H1 Timeframe
However, the published forward test is only for one currency pair, EURCHF.
Maybe other currency pairs don’t give good results.
Trading strategy of Forex Enigma EA
Forex Enigma EA executes a combination of grid trading and martingale trading.
Reference article:Martingale EA Risks and Benefits | Is it profitable?
In the MT4 trading history chart below, you can see that after opening a buy position, each time the price falls, additional buy positions are opened one after another.
■EURCHF 1 hour Chart White=Buy entry Red=Sell entry
Lot size for additional positions
The following is an excerpt from a series of trading history of Forex Enigma EA.
| Open time | Close time | Symbol | Lots | Buy/sell | Open price | Close price |
| 2022/01/24 16:00 | 2022/02/14 10:29 | EURCHF | 0.1 | Sell | 1.03186 | 1.04777 |
| 2022/01/25 4:00 | 2022/02/14 10:29 | EURCHF | 0.1 | Sell | 1.03538 | 1.04777 |
| 2022/01/26 12:00 | 2022/02/14 10:29 | EURCHF | 0.15 | Sell | 1.0385 | 1.04777 |
| 2022/01/31 12:00 | 2022/02/14 10:29 | EURCHF | 0.23 | Sell | 1.04111 | 1.04777 |
| 2022/02/03 20:00 | 2022/02/14 10:29 | EURCHF | 0.34 | Sell | 1.05214 | 1.04777 |
| 2022/02/04 12:00 | 2022/02/14 10:29 | EURCHF | 0.51 | Sell | 1.05593 | 1.04777 |
The lot size is steadily increasing from 0.1 lot to 0.15 lot → 0.23 lot → 0.34 lot → 0.51 lot.
However, this EA may enter with the same lot size as last time.
Pips width for additional entry
The pips width between the previous position and the additional position is not constant.
Sometimes it’s around 30 pips, sometimes it’s around 100 pips.
Additional entries are determined based on indicators, etc., rather than a fixed pips width.
Multiple trading strategies
The sales site states that Forex Enigma EA has three strategies: scalp, trend, and half grid.
It’s not clear how this works.
The reason why the pips width of additional entries is different every time and the increase rate of lot size is not constant may be because the settings are different for these three strategies.
Direction of entry
The direction of entry in the Forex Enigma EA is not determined by short-term price movements.
Decide which direction to trade based on long-term price movements and only execute trades in the same direction for several months.
The MT4 trading history chart below shows the long-term trading of this EA on a 4-hour timeframe chart.
You can see that it trades in the same direction for a certain period of time.
■EURCHF 4 hours Chart White=Buy entry Red=Sell entry
Risks and Dangers of Forex Enigma EA
It is a simple grid & martingale EA, and this EA has the risk of wiping out the account balance if a large trend occurs in the market.
The MT4 trading history chart below shows a situation where after holding a short position, the trend is up and a large number of short positions are held.
■EURCHF 1Hour Chart White=Buy entry Red=Sell entry
If the uptrend continues while holding many positions with large lot sizes, the equity loss will become large and the EA will reduce the account balance to 0.
News filter function
The Forex Enigma EA sales site states that this EA has a news filter function.
The news filter helps the EA avoid entering at a time when the price moves rapidly immediately after the announcement of an economic index.
A news filter may work effectively for this EA that holds a large number of positions.
Backtest results of Forex Enigma EA
| Test start | 2020/4/27～ |
| Test end | 2021/04/25 |
| Operation period | 11months |
| Initial deposit | 1,000 |
| Operational lot size | Adjusted by balance |
| Final balance | 1,496 |
| Total net profit | 496 |
| Rate of return (overall) | 149.6% |
| Monthly rate of return (compound interest) | 3.7% |
| Monthly rate of return (simple interest) | – |
| Relative drawdown | 21.5% |
| Maximum drawdown (amount) | 225 |
| Profit factor | 2.68 |
| Winning rate | 76.6% |
| Total trades | 777 |
Low Risk Setting EURCHF
| Test start | 2020/4/27～ |
| Test end | 2021/04/25 |
| Operation period | 11months |
| Initial deposit | 1,000 |
| Operational lot size | Adjusted by balance |
| Final balance | 1,031 |
| Total net profit | 31 |
| Rate of return (overall) | 103.1% |
| Monthly rate of return (compound interest) | 0.3% |
| Monthly rate of return (simple interest) | – |
| Relative drawdown | 16.9% |
| Maximum drawdown (amount) | 174 |
| Profit factor | 2.42 |
| Winning rate | 77.7% |
| Total trades | 493 |
Only EURCHF has backtest results published.
It has been backtested in two settings: high-risk setting and low-risk setting.
Forex Enigma EA backtest results are completely unreliable.
First, the backtest has only been run for about a year. This is clearly not enough backtesting period.
It may be attractive if it is an EA that provides a very large profit in one year.
However, even with a high-risk setting, with a balance of 1000 USD, the profit obtained in one year is about 400 USD.
This EA cannot be expected to generate large profits, and the backtest results are not reliable.
Conclusion of Forex Enigma EA
The forward tests published by the vendor have shown good results.
However, since this EA holds a large number of positions, there is a risk of wiping out the account balance if a large trend market occurs.
Although the vendor’s sales page states that it can be applied to multiple currencies, it is extremely dangerous to run this high-risk EA on multiple currency pairs at the same time.
In fact, the vendor does not backtest or forward test in multiple currencies.
The forward test on the EURCHF pair has shown good results.
On the other hand, backtest results are completely useless. This is because backtesting has only been carried out for one year.
This may be because if this EA is used for a long period of time, it will lose so much that the account balance will suddenly drop to 0.
Users should be aware of the risks associated with this EA before using it.
