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FXCIPHER is a fully automated expert advisor that works on Metatrader 4 as well as Metatrader 5. According to the vendor, it can achieve high profitability with a low initial deposit. However, we need to examine the veracity of these claims independently.
One of the areas where we are disappointed with this robot is vendor transparency. There is virtually no information on the parent company, so we don’t know where it is located or for how long it has been building EAs. The vendor has not revealed the identities of the team members and we don’t know if there are other systems built by this developer.
FXCIPHER strategies and tests
FXCIPHER works on the basis of two in-built preset settings. The first setting is more conservative and has been optimized since 2010, while the second setting, optimized since 2017, trades with a higher degree of risk. You can use this robot for trading in pairs like USD/CAD, GBP/USD, EUR/JPY, EUR/USD, and AUD/USD.
This is an EA that works with FIFO and NFA-regulated brokers. It has two in-built strategies, but the vendor does not explain what these are. They have mentioned that the EA switches between strategies according to the market condition. However, since we have no information on any of them, we cannot tell whether this is an efficient approach.
FXCIPHER has a drawdown limiting system that lets you specify the maximum amount of loss in the EA settings. The robot uses stop loss with all trades and monitors the drawdown at all times. In case the drawdown exceeds the specified value, it closes trades forcibly at the market price.
When you purchase the robot, you get access to a detailed user manual. The customer support team is active 24/7 and the vendor offers free software updates for all customers. You can also change your account number online without any restrictions.
Backtesting results for GBP/USD
Here we have the results for a backtest conducted on the GBP/USD pair from 2010 to 2021 using an every tick model with a modeling quality of 90%. The robot placed 1675 trades during the testing period, winning only 53.91% of them. Compared to other automated systems, the win rate is quite low. On top of that, it had a high drawdown of 37.16%, which indicates a risky trading strategy.
There were 8 maximum consecutive wins and 4 maximum consecutive losses for this backtest. The EA generated a total profit of $283625.40 and had a profit factor of 1.90.
FXCIPHER live trading account review
Growth chart for FXCIPHER
This live trading account for FXCIPHER was launched on September 25, 2020. After conducting 704 trades, the EA has managed a win rate of 48%, which is even lower than the backtest. Very few traders would be willing to invest in a robot with such low profitability. Here also, we can see a high drawdown of 36.17%, indicating a high risk of ruin.
At this moment, the daily and monthly gains for this account are 0.53% and 17.05% respectively, while the total profit is $28400.75. The account has a profit factor of 1.55.
Trading results for FXCIPHER
Looking at the recent trades, it is evident that FXCIPHER follows a high-risk approach. Out of the last 10 trades, 8 have ended in losses, so this does not look like a robot that earns steady profits.
Pricing
FXCIPHER is available at the price of $295, for which you get a single software license for any account type. The vendor offers a 30-day money-back guarantee on the condition that the customer has used the recommended settings and their drawdown is more than 35%.
Is FXCIPHER robot a scam?
We think this robot is a scam since the vendor makes some false promises. They have stated that the 2010 preset is highly reliable. However, after checking the live trading results, we see a different story. The account has suffered heavy losses recently and its win rate is below par. There are customer reviews for this expert advisor, which makes it an even riskier investment.
Other notes
The vendor has not shared any contact information on the website and there is no live chat feature. There is a contact form you can use to get in touch with the service team.
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