Forex Cantata III User Manual

Forex Cantata III User Manual
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE
CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED
RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT
BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE
IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY.
SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT
THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS
BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES
SIMILAR TO THOSE SHOWN. No representation is being made that any account will or is
likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp
differences between hypothetical performance results and the actual results subsequently
achieved by any particular trading program. Hypothetical trading does not involve financial
risk, and no hypothetical trading record can completely account for the impact of financial
risk in actual trading.
All information provided is for educational purposes only and is not intended to provide
financial advice. Any statements about profits or income, either expressed or implied, do
not represent a guarantee. Your actual trading may result in losses as no trading system is
guaranteed. By using the Forex Cantata III EA, you agree that you accept full
responsibilities for your actions, trades and profit or loss, and agree to hold the
developers and authorized distributors of the Forex Cantata III EA and this information
harmless in any and all ways.
Please familiarize yourself with the method by which lot sizes are calculated. It is vitally
important that you do not exceed the recommended lot size in relationship to your
balance. There is no system of Forex trading that is guaranteed to be 100% safe, but
following these lot size rules will help increase your chances of success over the long
term.
Copyright © 2010-2014, Forex-Goldmine, Inc.
What is Forex Cantata III ?
Welcome to Forex Cantata III, an automated foreign exchange trading system, or Expert
Advisor, that runs on the Metatrader 4 platform. It can trade on any currency pair. The Forex
Cantata III has been entirely re-written from the ground up, in order to improve on previous
versions. Before you can use Forex Cantata III , you must download Metatrader 4 from a broker,
and open an account. A demo account is recommended for those learning foreign exchange or
getting started with Forex Cantata III.
Getting Started
Metatrader 4 can be downloaded from any broker that uses the platform to manage its
customers’ foreign exchange trading. We recommend a broker that allows you to trade micro
lots, ie, 0.01 lots. This is very critical. We also recommend that you use a broker that is not a
dealing desk, so that they are not trading against you. You may wish to consider Interbank FX,
out of Utah. They offer a mini account that allows you to trade 0.01 lots that are 1/10 the size
of the standard micro lots that are offered by other brokers. This will give you more granularity
in your lot sizes for the purposes of compounding. Other possibilities would be Forex.com,
GoMarkets, FXDD, or other similar brokers. These are mentioned because of their reputation as
established, regulated brokers, and not as to whether or not they function as a dealing desk.
With these last mentioned brokers, you would not want a mini account, but would want a
standard account that trades micro lots. As long as you can trade micro lots, feel free to use
any broker that you feel comfortable with, and where you feel your money is safe.
What We Need From You
If you have not already specified a live account number, we need one live account number that
you would like to have the Forex Cantata III activated for. We also need up to 2 demo account
numbers that you wish to use. Please send an email to the support address where you purchased
the Forex Cantata III, requesting that the EA be allowed to trade on those accounts.
Installing Forex Cantata III
1. The new installer file will handle the new data folder structure for MT4 Build 600 and above.
However, if you wish to install the EA manually, here is how you would do it: From within your
Metatrader 4 Platform (build 600 or later), click on File ---> Open Data Folder. This will open the
data folder under which your EA and DLL files must be placed. Once that folder is open, look for
the folder named MQL4, and click on it. You will notice a folder called “Experts”. Click on that
folder, and install the Forex Cantata III EA (Forex Cantata III.ex4) in that Experts folder. Then
back up out of that folder, back to the MQL4 folder, and look for the “Libraries” folder. Note that
this folder is no longer under the Experts folder. Install the Forex-Goldmine.dll file in that Libraries
folder. If you have already been running Forex Cantata II, then the required dll file will already be
there. The dll file has not changed.
2. Note that going to the place where your terminal is installed, such as C:\Program Files\Platform
Name, or C: \ Program Files (x86)\Metatrader 4 at Forex.com\ or whatever broker you use IS NO
LONGER THE CORRECT PLACE TO INSTALL YOUR EA. Even though you see an MQL4 folder
Copyright © 2010-2014, Forex-Goldmine, Inc.
there, with an Experts folder under it, and with Expert Advisors in that folder, they are just sitting
there, and are not the Expert Advisors that are being traded. You must install any EA you plan to
use by clicking on File ---->Open Data Folder from within your Metatrader 4 folder to get to the
actual place on your computer where the Expert Advisors, Indicators, and dll files must be
installed. This is actually a hidden folder on your system, and you are not likely to find it any other
way.
3. Close and restart your Metatrader platform. From the Market Watch (Control-M), select a
currency pair to open the first chart. It will display with a 1 hour (H1) time frame. It is
recommended that you use the AUDCAD currency pair for Forex Cantata III.
4. Display the Navigator (Control-N or View Navigator. Drag the Forex Cantata III from the Expert
Advisors branch of the Navigator tree onto the open chart.
5. In the open Forex Cantata III dialogue box, under the Common tab, place a check beside
“Allow Live Trading”. This will allow the Forex Cantata III Expert Advisor to work on the chart.
6. To turn on Expert Advisors, ensure that the Expert Advisors button on the Metatrader toolbar is
green. If it is red, click on it so that it turns green. In the upper right corner of the chart, the word
“Forex Cantata III” should appear, followed by a happy face ☺.
7. If an x appears in place of the happy face, double check that the Expert Advisors button on the
Metatrader toolbar shows a green hat and arrow. Click on it if it does not.
8. If a frowny face / appears in place of the happy face, open the dialogue box (by pressing F7),
click on the Common tab, and make sure that there is a check next to Allow Live Trading. Press
OK to close the dialogue box.
Using Forex Cantata III
Forex Cantata III user settings are made in the dialogue box. To open the dialogue box,
select the chart on which you want to adjust Forex Cantata III settings, and press F7. Once
you have made changes to the settings, save the new settings by pressing OK.
User Settings
DisplayInfoPanel (default = true)
If true, this displays information about the current status of the
EA and its trades on the trading chart. If false, the display is
not shown.
DisplaySize (default = 12)
This sets the font size for the on-screen display. You will notice
that the information displayed on the chart is much easier to
read now. The smaller this number, the more will fit on your
screen, so don't go any larger than you need to.
LineSpacing (default = 17)
This sets the spacing between lines for the on-screen display.
If you are having problems fitting everything on your screen,
try reducing this to 15 or 16.
Copyright © 2010-2014, Forex-Goldmine, Inc.
FontColor (default = White)
If you are using a black background for your charts, then white
will work fine. If you have changed the background of your
charts to white, however, then you will need to change this to
either black or some other color.
DisplaySide (default = 2)
If 2, then the information will be shown on the left side of the
chart. If 3, then the information will show on the right side of
the chart.
ResetVariablesToStartOver ( default = false) This would only rarely be used. It resets the count on items
that the EA keeps track of over the long term, such as
statistics, but also resets trade information that is saved
between times you shut down the terminal and restart it.
MaxTradeLevels (default = 14)
This is the maximum number of trade levels you will allow to
open in any sequence. It must be at least 1, and cannot be
larger than 15. If a number larger than 15 is set, it will still be
limited to only 15 trades per sequence.
DoTrades (default = true)
The default value of true will allow Forex Cantata III to open
trades. If this is set to false, Forex Cantata III will not open any
new trade sequences, but it will it continue to manage any open
trade sequences, including adding trade levels if needed.
TradeDirection (default = 3)
If 3, the EA will trade in 1 direction at a time. If the currency
price is below the Center Price, then it will buy, and if it is
above the Center Price, it will sell. If this is set to 0, then the
EA will trade in both directions at the same time. If set to 1,
the EA will trade long only, and if set to -1, the EA will trade
short only. It is recommended to use TradeDirection 3 for
lower drawdown.
TradeRange (default = 12)
This sets the grid size for the 1st grid level in a trade sequence,
and also sets the level where the next trade in the series will
be opened, if necessary. Subsequent grid sizes beyond trade
level 1 gradually increase in size by the factor in the
TradeRangeMultiplier setting.
StopLossInPips (default = 0)
Optional, but not recommended. The system is designed to
work with this left at 0.
CloseTradesBeyondMaxLevel (default = false)
If this is set to true, then, if the trading has reached the
MaxTradeLevels, and if the price movement reaches the point
where a higher level would normally be opened, the EA will
close all trades in that sequence and start over at level 1.
MaxAllowedDrawDownPct (default = 100.0)
The maximum drawdown that can occur between the account
balance and account equity before the EA will close all of its
trades and accept a loss. The EA will have more flexibility to
make full use of its trading strategy if this is left at 100.
StopTradingOnMaxDrawdown
If true, and if the equity to balance drawdown reaches the
maximum set in the MaxAllowedDrawDownPct setting, then all
trades are closed and trading is halted, until the settings box is
manually opened an OK is clicked.
(default = false)
TradeLots (default = 0.0)
If used, this hard codes the number of lots to trade, and
overrides any calculations that the BalanceFactor would
otherwise do to calculate the number of lots to trade.
Copyright © 2010-2014, Forex-Goldmine, Inc.
BalanceFactor (default = 5000.0)
Not used if you specify an amount in TradeLots. Calculates the
TradeLots for you, as 0.01 lots per BalanceFactor worth of
account balance. Should always be 4000 or higher. Higher is
better.
UseEquityNotBalance (default = false)
If true, then the account equity is used by the BalanceFactor
setting to calculate the lot size for level 1 trades. If false, then
the account balance is used.
MagicLong (default = 5201)
The number series assigned to the start of any sequence of
long trades. The 1st long trade will use MagicLong, the 2nd trade
will use MagicLong+1 (5202), the 3rd will use MagicLong+2
(5203), etc. If Forex Cantata III is attached to more than one
currency pair, this setting must be changed so that each
instance of Forex Cantata III will control its own trades
without a conflict with any other EA. Use this feature when
trading any currency pair.
MagicShort (default = 5101)
The number series assigned to the start of any sequence of
short trades. The 1st short trade will use MagicShort, the 2nd
trade will use MagicShort+1 (5302), the 3rd will use
MagicShort+2 (5303), etc. If Forex Cantata III is attached to
more than one currency pair, this setting must be changed so
that each instance of Forex Cantata III will control its own
trades without a conflict with any other EA. Use this feature
when trading any currency pair.
FixedCenterPrice (default = 1.00)
This sets the center point where trading switches between
long trades and short trades. When the price of the currency
pair is above the number in this setting, and the
TradeDirection is set to 3, the EA will go short. When it is
below this number, the EA will go long.
LookBackDays (default=1000)
If FixedCenterPrice is 0.0, then the LookbackDays setting is
used to look back X days, and find the center price from that
day to the present. If FixedCenterPrice has a value in it, then
that overrides this calculation.
MiddleNoTradeZone (default = 100)
If set to a number greater than 0, then this defines the pip
size of a zone centered on the Center Price, in which no trades
are taken. Above this zone, sell trades are taken, and below
this zone, buy trades are taken. For example, if this is set to
100, then the center zone extends from 50 pips above the
center price to 50 pips below the center price, and no trades
are taken in that zone. With the default of 0, then there is no
zone where no trades are taken, and sell trades are taken
above the center and buy trades are taken below the center
as before.
Copyright © 2010-2014, Forex-Goldmine, Inc.
Money Management and Safety
Forex Cantata III is designed to be as safe as possible, although no forex trading system can
be 100% safe. Consequently, it is highly recommended that users consider withdrawing ½ of any
profits generated at the end of each month from their accounts, and set this money aside. This
should be done until an amount equivalent to the original investment has been withdrawn. At this
point, only profits are being traded, and the original principal can no longer be lost.
How Forex Cantata III Works
The objective in designing Forex Cantata III was to achieve a reasonable risk level in forex
trading while generating significant profits comparable to other forms of investment. The Forex
Cantata III uses a dynamic grid method of trading, coupled with a gradually expanding lot size
for each trade level in the grid . Normally, increasing your lot size for each trade would be
considered quite dangerous. However, we use a specific technology that throttles down the
growth of your lot sizes, which helps protect your account balance. And now, instead of simply
copying the code from previous versions, Forex Cantata III has been completely redesigned
and re-written from scratch, in order to use the latest programming technology.
Important Note
Even though the Forex Cantata III EA trades in as safe a manner as is possible with this type of
system, the Forex market should still be respected as being potentially dangerous if it is traded
too aggressively. The developer and distributors of this EA cannot give you trading advice, but
we can tell you that we would not use aggressive settings if we were not thoroughly experienced
with this EA, and did not understand the principles behind it. There is a place for the more
aggressive settings, but not when you first use the EA.
When using a different currency pair, please remember to either change the
FixedCenterPrice setting to an apppropriate center for that currency pair, or else, set
FixedCenterPrice to 0.0 and allow the LookBackDays setting to calculate the center
to use.
For Moderate Risk Settings: Minimum balance in a standard account with 100K lot sizes would
be $4000 to $5000, with $5000 preferred (less aggressive) when trading only the AUDCAD pair.
TradeLots=0.01 . If you are trading in an IBFX mini account with a base lot size of 10K, then
your minimum balances would be $400-$500 with $500 preferred to trade the AUDCAD pair
only. In either case, you should make certain that you are able to trade 0.01 lots as your
minimum lot size.
Copyright © 2010-2014, Forex-Goldmine, Inc.
On Chart Display
Forex Cantata III displays information on the currency pair chart in order to keep you
informed of its status and trading.
The on-chart information is summarized in the following table:
Forex Cantata III x.xx.xx
Current Server Time
Spread
EA name and release number
The current time according to your broker's server
Shows the current spread for the currency pair.
Account Leverage
Shows the leverage for your account.
Balance Factor
Displays what you have in your BalanceFactor setting.
Current Equity Drawdown Percent
Shows the current percentage of drawdown on your account equity.
Current Margin Utilization
Shows the current margin being used as a percentage of equity.
Center Price
Shows the current center price that is being used for the currency pair,
either entered under FixedCenterPrice, or calculated using
LookBackDays.
The number of lots that will be traded on the first (level 1) trade.
Lots to Trade
Magic Number (Long) and Short
Shows the Magic Number that will be used to start the long and short
trade sequences, respectively. This number will be used on level 1
trades, and 1 will be added to each magic number for each additional
level. Every trade will have its own unique magic number.
Calculated (Long or Short Close
Price OR (Long or Short) Close
Price.
If UseProfitTargetCalcs is false, then this number is based on the actual
TakeProfit Price, based on Pips or Levels. If UseProfitTargetCalcs is true,
then this number is calculated to be the price where the profit target will
actually be hit, so that the trades can close.
Next Buy Price/Current Buy Trade
Level
If the ea is going long, then this line will show the price at which the next
buy trade is scheduled to open and will also show the current buy trade
level.
Next Sell Price/Current Sell Trade
Level
If the ea is going short, then this line will show the price at which the next
sell trade is scheduled to open and will also show the current sell trade
level.
Account Authorized
True or False – Shows whether EA is authorized for this account. True, if
your account authorized for trading. Live accounts must have a license
purchased in order to be authorized.
DoTrades
Displays the current setting of the DoTrades setting. If true, the robot
will trade when the price is hit and the expert button is green, allowing
the order to be sent.
Copyright © 2010-2014, Forex-Goldmine, Inc.