CypherFX.com Review

Update to my previous post. I`ve received my refund on dec 14.

2012-12-11 2StarIf you want to keep your money don`t buy this EA. Losing positions will be held forever. In fact I`ve made some extra money using a contrarian approach to CypherFX.

So far so bad. Once you`ve decided to use the refund policy (Refund Policy:NOTE: It is our policy to refund the purchase price and terminate the license of any customer who has requested a refund on any of our products in the past. ) you`ll receive a couple of e-mails promising that you`ll receive the refund as soon as possible. I`ve asked for my refund on December 3rd and so far I`ve just received poor excuses to why I havent gotten my payment.

If you wan`t to keep you money hands off, if you wan`t to practice a contrarian approach: go for it ;-((

In order to trade this EA, you need to work with a broker that offers all the crosses (eg GBPCHF, etc), and optimally, the exotics (eg TRYPLN), etc. If these are not available on your MT4 you may missed out on the trades.

CypherFX is programmed to closed the basket of trades (a set of 4 trades), whenever profit target or equityclosepercent is reached. This meant that you may have trades that closed at 0.3pips, whereas the other 3 trades may closed at slightly higher than 10pips. The trade that closed at 0.3pips will cost you, especially if you are on ECN account (like me), coz the commission paid on an ECN trnx is definitely HIGHER than 0.3pips. The lowest commission is about USD6 per 100,000units round trip. (Round trip is when a trade has closed. Commission is being calculated based on lot size. Eg if commission is USD6/RT, then if the trnx is 20,000units, it will be (USD6*20,000)/100,000=USD1.2).

Thus a 0.3pips trnx becomes very costly if you factor in the fact that some currency pairs have a lower than USD10 per pip. Even if that currency pair is USD10/pip value/100,000units, it amounted to USD3 on 1 standard lot and you STILL need to factor in SPREADS while the trnx is running. If you broker charges USD10 per RT, than it is NEGATIVE USD7 for that trnx. On the pip count it looks good, but P/L wise in terms of $, it is not that wonderful

After 2 weeks, I had to temporarily take down CypherFX, while Mclean is fixing and upgrading this behavior of closure of basket, to close individually (?). I am not sure what the upgrade will address, but certainly hope that this is being taken into account.

I have very much higher positive pips count, and a very very small P/L $.

That said, If Mclean is able to upgrade it further and make it more dynamic and more intelligent, I am still willing to place it on Demo to try it out. Mclean sent a mail to subscribers that user guide will be sent out with the upgraded EA. Mclean also provides managed accounts, but its only available for corporate clients.

IMHO true arbitage trading will always be useful to learn and if an EA can be tuned to harness its powers, then I can hope to truly see this EA earning its hype.

I notice that as of 30 Nov the drawdown is equal to all the profit made so far and more. That's about 30%. You don't use an arbitrage and accept a drawdown this big, that's mad. I also notice that they have not updated their myfxbook since Nov 23 which makes me suspicious.

http://www.myfxbook.com/members/cypherfx/cypherfx-fxpro-live/390443

I bought the ea on 19/Nov for USD297. This EA works on arbitage of trading stronger currency pairs against weaker currency pairs. A SET of trades is always 4 trades, 2 buys, 2 sells:
eg, Buy EURJPY, Sell GBPCHF, Buy CHFJPY, sell USDCHF

NOTE this is not arbitage between prices of different brokerages which is almost impossible to implement by an EA, even by a human, but true arbitage based on strength of currencies PAIRS. I emphasised PAIR here, coz as most FPA members are traders (or only beginners), you now realised that EURJPY is a PAIR (TWO) currencies. When a trade is BUY EURJPY, you are ACTUALLY BUYING EUR and SELLING JPY. (My apologies for so many capitalised wordings, as some FPA members maybe beginners and lost in my description of currency PAIRS)

I cant rate this EA yet just based on TWENTY trades and FOUR days worth of trading. BUT my RESULTS? 153.5PIPS

EAT YOUR HEART OUT, or rather try emptying your piggy bank! It worked so far for the 20 trades. ANY LOSSES? SURE! ONE LOST TRADE out of TWENTY trades worth 2.5pips (its TWO point FIVE pips NOT TWNTY-FIVE). For the sake of calculation and verification, its Buy EURNZD, EP=1.56732, exit=1.56707. Thus its a 2.5pips lost. If I made a calculation error, pls FPA members let me know and I will post the correction.

IMHO: its a EA worth buying.

Again, this is my personal opinion. Mcclean sometimes takes days to answer emails due to his various businesses and having send my broker's details such as minimum lot sizes, platform, brokerage name (NOT acct details), to ask for setfiles for CypherFX on 14Nov, I am still WAITING for this in my member area to download to optimize for CypherFX. The site does allow members to send this request if they want a specific setfiles for their brokerage so that the EA performs at the most optimal. And the fact that Mcclean is willing to take the trouble to test drive the settings on that specific brokerage platform (thats why the platform and minimum lot size and leverage given is needed infor for the setfiles. He doesnt need your acct details since a test/demo platform can be easily downloaded and strategy test run on that platform with the EA and customization done to create a best of breed setfiles)

Looks like I have to keep on sending requests for the setfiles to be completed for my settings. But so far with default settings of Risk=20%, BTP=0.20 and EquityStopPercent=30 (I change this to 30 from 20%), the results were truly exceptional.

I shall try to report back after 30days since the money back guarantee was for 30days. Based on 153.5pips earned and a price tag of USD297 (ONE time payment for the EA), I would say if this is the pattern of the EA, then the EA would have earned its worth in 30 days. Not forgetting that my risk% settings were low and the total lot size were divided between the 4 trades, eg, total lot size based on 20%, against BTP was 0.10, thus the 4 trades maybe 0.3, 0.2, 0.3, 0.2 (this are actual trades I had in my trading log), and the P/L in $=USD232.90. Extrapolating this 10x, if the EA opens Standard Lots instead, this would be about USD2329? (again please let me know if there was calculation error on my part).

FYI, 0.1=10,000units and 1 standard lot=100,000units, thus 10x
Aside from the wait time for responses and sometimes NON answer from the contact us forms or members area, the EA is doing fine. If you compare a price tag of USD297 vs USD232, you kinda get the idea and EA had 20 trades so far!

Since most EA will "fade" out after a while for one reason or another (I am not allowed to post rude remarks), it is best to keep Risk% small and for faster closure of trades keep BTP in proportion. REMEMBER a bird in hand is FAR better than 2 birds in the bush. It maybe fantastic to have BIGGER profits, but this sort of EA usually does have bigger DD. So far CypherFX has not exhibit this behaviour. Hopefully Mcclean who is an expert in arbitage trading and a established trader and fund manager, has injected sufficient intelligence for the EA to work fine longer or forever. I believe that an EA based in basic principle of ALWAYS finding trading stronger vs weaker pairs will average out the winnings vs lossing very well. After all, everyday there will always be pairs that are uptrend and pairs that are downtrend. Entering and recognising such trends and trades is where the "heart" of the intelligence is seated. Mcclean has done well to keep developing and he had already wasted years based on his knowledge of arbitage, market, forex pairs, just to create this true arbitage EA.

Hope to report even better news next month!