Cypher EA
This EA trades the Cypher harmonic pattern, a specific Fibonacci-based chart pattern that identifies potential reversal zones. It automatically detects the Cypher pattern formation and enters trades at the pattern completion point with predefined risk parameters.
Open the interactive view (equity curve, symbol switch)Key facts
Backtest results (H1, about 1 year)
| Symbol | P&L | Annual | Max DD | Trades | Win rate | Sharpe | Recovery | Losing streak | Per trade | Status |
|---|---|---|---|---|---|---|---|---|---|---|
| EURUSD | -1.85% | -1.61% | 5.89% | 89 | 42.70% | -0.53 | -0.31 | 6 | −$2.08 | Reliable |
| GBPUSD | -3.86% | -3.36% | 8.74% | 84 | 45.20% | -0.81 | -0.44 | 6 | −$4.60 | Reliable |
| USDJPY | +1.34% | +1.16% | 4.86% | 95 | 39.40% | 0.33 | 0.28 | 7 | +$1.59 | Reliable |
| XAUUSD | +124.01% | +94.71% | 16.25% | 80 | 61.30% | 2.31 | 7.63 | 5 | +$155.01 | Reliable |
Profitable on 2 of 4 markets with reliable results.
Converted from MQL5 to Python and run with the same rules for every EA. Positions use MT5 lot sizes (100,000 units per FX lot, 100 oz per gold lot) with 1:100 leverage, one order at a time, and a stop-out below 10% of the starting balance. Sharpe is computed from the equity curve. Results marked as unreliable are shown for completeness only.
Month by month
| Market | Months with a gain | Best month | Worst month |
|---|---|---|---|
| EURUSD | 46% | +0.99% 2026-09 | -2.03% 2026-03 |
| GBPUSD | 54% | +1.75% 2026-10 | -2.91% 2026-04 |
| USDJPY | 46% | +2.02% 2026-01 | -2.34% 2026-03 |
| XAUUSD | 62% | +60.34% 2026-01 | -4.25% 2026-10 |
From the backtest equity curve, sampled about every two days; only reliable results.
Blow-up risk: No blow-up pattern found
None of the usual blow-up patterns were found in the code, and the account was not stopped out in our backtests. That is not a guarantee: any EA can lose money.
High: stopped out in our backtest, or martingale/grid sizing without a stop loss. Elevated: martingale or grid sizing with a stop loss, or several positions at once without a stop loss. What the label means and what we found →
Strategy analysis
The strategy concept is based on automatic identification and trading of the Cypher harmonic pattern, which consists of four pivot points (X-A-B-C-D) where the BC retracement reaches 0.382-0.618 of XA and the CD extension reaches 0.786 of XA. Entry conditions trigger when price reaches the D point (0.786 retracement of XA), opening long or short positions at the Potential Reversal Zone (PRZ). Exit conditions typically include Fibonacci-based take-profit targets (such as 0.382 and 0.618 retracements of CD) and stop-losses placed beyond the pattern invalidation level. Position sizing may use fixed lots or dynamic calculation based on account risk percentage. Money management for harmonic pattern trading generally recommends risking no more than 1-2% of the account per trade, ensuring long-term profitability through favorable risk-reward ratios inherent in well-formed patterns.
Strengths
- Harmonic pattern trading provides clear geometric rules and Fibonacci ratio constraints, making entry logic well-defined and evidence-based
- The Cypher pattern has statistically favorable win rates, with risk-reward ratios typically exceeding 1:2 when correctly identified
- Automated pattern detection eliminates subjective bias and emotional interference that plague manual harmonic trading
Weaknesses
- Harmonic pattern identification is sensitive to data precision, and real-time detection may produce false signals or delayed confirmation
- Pattern recognition algorithms may struggle with market noise and minor price deviations that distort the ideal geometric structure
- Lacks market environment filtering, potentially generating unfavorable trades during extreme trends or low liquidity sessions
Possible improvements
- Add multi-timeframe confirmation to only enter trades when aligned with the higher timeframe trend direction
- Incorporate an ATR-based volatility filter to suppress trading during extreme or insufficiently low volatility environments
Risk assessment
Overall risk: Medium
- The D-point reversal of harmonic patterns is not guaranteed, and price may break through the PRZ causing significant losses
- Fixed pattern recognition parameters may lack adaptability across different market conditions and volatility regimes
Evaluation scores
Parameters
| Parameter | Default | Description |
|---|---|---|
LotSize | 0.1 | Fixed trading lot size |
StopLoss_Pips | 50 | Stop loss in points |
TakeProfit_Pips | 100 | Take profit in points |
XABCRetacement_Min | 0.382 | Minimum BC retracement ratio of XA |
XABCRetracement_Max | 0.618 | Maximum BC retracement ratio of XA |
XADRetracement | 0.786 | D point retracement ratio of XA (pattern completion point) |
MagicNumber | 12345 | Order magic number to identify this EA's orders |
MaxSlippage | 3 | Maximum allowed slippage |
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Backtests are historical simulations and do not guarantee future results. Not financial advice.