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Price: $350

Phibase Synergy

Added on February 21, 2013 02:39 AM
(3.5 / 5)
Trading style: grid
Currency pairs: EURUSD
Time frame: H1
Money-back guarantee: none
NFA compliance: Yes
License: 2 real and 2 demo accounts

PhiBase Synergy is a fully automatic EA which is based on technical Fibonacci levels based on which it would set its trade targets and trailing stop loss levels. Here is a detailed review of the product, so that you can make an informed choice before you invest your money in it.

 

Basics - The Key Features and the Strategy Behind It

PhiBase Synergy follows a grid based trading strategy. Therefore, if multiple signals are generated based on price patterns at critical Fibonacci levels, then this EA will open more than one position.

The argument is that multiple signals mean that the trend is strong and that the potential of profits is much higher. The flip side of course is that as in any grid strategy a negative trend resulting in a huge draw down can cause multiple margin calls to be triggered thus risking not only your profits, but even your returns.

The developers of PhiBase SYNERGY EA have developed the underlying logic based on harmonic price patterns and channels that are formed at critical Fibonacci levels. This EA makes use of a very unique technique that relies on an abstract model template to recognize various price patterns and price actions. This abstract model is created by the EA using the normalized price action data and then adjusting it to a constant level by eliminating the differences caused by different price action ranges. The model is further adjusted to account for time differences – which mean that the randomness introduced by slow and fast moving forex markets is adjusted before arriving at the right levels to enter and exit a trade.

The EA is currently in its 4th version, which according to the developers has been build from scratch based on learnings from the previous versions. The EA has thus discontinued the basic patterns which were used in earlier versions. The current version trades using a much more advanced strategy based on harmonic price patterns and channel break outs and fall outs.

Every time the Ea is started, the previous four price patterns legs are always initialized. It also looks at data of the previous two months for normalization and for arriving at the necessary trend lines, channels and other data required for calculating the Fibonacci levels.

This EA has been developed to trade reversals, break outs and fall outs. It can trade both inside wide channels as well as break outs from narrow channel formations. Thus this strategy helps to effectively handle any unpredictability in the markets.

This EA is not optimized as the underlying strategy does not require it. Instead, simple indicators such as Stochastic Oscillator, Bands, moving averages and Hourly ATR are used as inputs for the core logic to arrive at trade levels. The EA trades every signal that is generated thus giving maximum possibility of profit generation. The developers also recommend that the PhiBase Synergy EA is traded on all days. Since it is a price pattern based EA, it can generate a profitable trade under various price action scenarios. This EA is especially suited for situations where there is a sudden price movement based on some news or one-time events. The developers have even done some back tests to verify this and come up with good results.

There is an option to switch off new trades on Fridays. However, even if that option is exercised, existing open positions will be managed automatically based on the EA’s exit and stop loss logic which are again based on Fibonacci levels or opposite trade triggers. However, the developers suggest that Fridays are very profitable and hence recommend trading on Fridays as well.

The EA is configured in such a way that almost 80% of trading happens during the European and American trading hours, although it can trade 24 hours. A lot of EAs do not offer good performance during the duration between the close of American market hours and the opening of the European markets. However the Phibase Synergy EA has a very good success rate even during this otherwise tricky period. This goes to show that the developers have done their homework in ensuring that the logic is robust and risk is well managed.

Back tests

The developers have done several back tests for a period of 13 years from 2000 to 2013 with a spread of 1.5 pips and the results are all pretty impressive. According to the developers, a maximum allocation per trade of 10 is a medium risk strategy which can give gains of 30% to 50% per year. The back tests using this setting for the 13 year period gave an average annual gain of around 38% with an average draw down of about 10%. The maximum historical draw down was close to 22% and when it comes to maintaining your account this is the number that you should keep in mind. A worst case simulation using Monte Carlo technique showed that with this setting the draw down will be less than 27% with a 95% confidence level.

This EA also offers automatic money management and arrives at trade sizes based on the account balance. For a US$ 10000 account the EA will choose a lot size of 0.1 per position and it can take up to a maimum of 4 simultaneous open positions in the same direction. If the account size is only $5000 then the EA will trade with lot size of 0.05 per position. Thus the lot sizes are dynamically changed based on the account balance. The broker account should support micro lots, if your account balance is less than $10000 so that the 0.01 minimum lot size and the 0.01 increment of lot size can be supported. Otherwise, the automatic money management will not be effective and you are losing the advantage of an in built risk protection mechanism.

However, the EA also allows an option to disable the money management by using fixed lots. This will make the EA forcefully trade using the fixed lot size regardless of the balance in the account. This is not recommended unless you are a professional trader who can control this effectively and attempt to get superior returns using their experience to set trade size manually.

13 Year Back Test - Parameters : Default (Recommended) Max Allocation: 10 (Medium-High Risk)

 

13 Year Back Test - Parameters : Default (Recommended) Fixed Lot: 0.1 on US$ 10000 (No Money Management)

 

13 Year Back Test - Parameters : Default (Recommended) Max Allocation: 5 (Very Low Risk)

 

13 Year Back Test - Parameters : Default (Recommended) Max Allocation: 8 (Low-Medium Risk)

 

13 Year Back Test - Parameters : Default (Recommended) Max Allocation: 15 (Very High Risk)

 

Forward Tests

A forward test on a live micro account at myfxbook.com gives more insights into this EA. The account was started with an initial  balance of $300 using the EURUSD currency pair which was started on 15 Feb 2012 shows a modest gain of 3.56% and a rather heavy draw down of 17.43%. Another account started in June 2012, with the same initial balance and EURUSD and USDCHF currency pairs shows a better gain of 15.32%, though the draw down also has been relatively much higher at 26.81%.

Conclusion

The license cost is $350 and you will get 2 live accounts and 2 demo accounts for this price. This EA is also NFA compliant. Unfortunately, there is no refund policy. Just as in the case of any other EA, even this one should be thoroughly tested before you decide to use it. Make full use of the demo account and be convinced about the strategy before you start using it on a live account.


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