Forex Cantata User Manual

Forex Cantata 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 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 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 © 2010-2013, Forex-Goldmine, Inc.
What is Forex Cantata ?
Welcome to Forex Cantata, an automated foreign exchange trading system, or Expert
Advisor, that runs on the Metatrader 4 platform. It can trade on either the AUDCAD or AUDNZD
currency pair. If only using one pair, the AUDCAD is the preferred pair. The Forex Cantata
features a greatly simplified group of settings, making it easier to get started without being
overwhelmed by too many potential settings. Before you can use Forex Cantata , 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.
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 activated for. We also need up to 3 demo account
numbers that you wish to use. Please send an email to the support address where you purchased
the Forex Cantata, requesting that the EA be allowed to trade on those accounts.
Installing Forex Cantata
1. Close all open Metatrader platforms.
2. If installing the Forex Cantata from an installer application, simply run the Forex Cantata
installer application. The EA and associated files will all be installed to their proper locations in
each of your Metatrader platforms. If you wish to install the EA manually, then you will need to
copy and paste the ForexCantata.ex4 file into the experts folder of your Metatrader 4 platform.
You will also need to copy and paste the Forex-Goldmine.dll file into the libraries folder that is in
the experts folder of your Metatrader 4 platform. All of the settings files would go into the
presets folder that is in the experts folder of the platform.
3. Restart your Metatrader platform(s). From the Market Watch (Control-M), select a currency pair
Copyright © 2010-2013, Forex-Goldmine, Inc.
to open the first chart. It will display with a 1 hour (H1) time frame.
4. Display the Navigator (Control-N or View Navigator. Drag the Forex Cantata from the Expert
Advisors branch of the Navigator tree onto the open chart.
5. In the open Forex Cantata dialogue box, under the Common tab, place a check beside “Allow
Live Trading”. This will allow the Forex Cantata 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” 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
Forex Cantata user settings are made in the dialogue box. To open the dialogue box, select
the chart on which you want to adjust Forex Cantata settings, and press F7. Once you have
made changes to the settings, save the new settings by pressing OK.
User Settings
DoTrades (default = true)
The default value of true will allow Forex Cantata to open
trades. If this is set to false, Forex Cantata will not open any
new trades, but it will it continue to manage any open trades.
MonitorAndClose (default = false)
If true, monitors and continues an existing trade sequence as
needed, and closes trades when appropriate but does not
allow any new trade sequences to be opened.
TradeBothDirections (default = False)
Should be set to false if the user is a U.S. trader. If from
outside the U.S. (so you can trade both directions at once),
this can be set to true, but false is still recommended for
lower drawdown.
ModifyMartingale (default = true)
If true, then the martingale sequence is modified to repeat
the lot size of the first trade for the second trade. Thus, the
sequence would be 1, 1, 2, 4, 8, 16.
If false, the regular martingale sequence of 1, 2, 4, 8, 16,
32 would be used as in previous versions of the EA.
The advantage of using this is that a much lower overall total
number of lots will be opened, and thus the BalanceFactor
can optionally be lower due to the decreased risk. However, if
you do reduce your BalanceFactor, be sure to set
ModifyMartingale to true!
Copyright © 2010-2013, Forex-Goldmine, Inc.
MaxMartingaleLevel (default = 14)
This sets the maximum martingale level that is allowed to be
opened on a trade sequence.
MaxDrawDownPct (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. It is a protection measure to avoid too large
a loss to your account.
TradeLots (default = 0.00)
This should be left at 0.01 or 0.02 unless you have an
unusually large account. This sets the size of the first trade
in the Martingale series. If this is left at 0.0, then the
BalanceFactor is used to calculate lot sizes.
BalanceFactor (default = 3000)
Not used if you specify an amount in TradeLots. Calculates
the TradeLots for you, as 0.01 lots per BalanceFactor worth
of account balance.
MagicNumber (default = 734775)
The number series assigned to trades opened so that Forex
Cantata can control exits. If Forex Cantata is attached to
more than one currency pair, the MagicNumber must be
changed so that each instance of Forex Cantata will control
its own trades. Use this feature when trading any currency
pair.
LookBackDays (default = 60)
This sets the number of days the EA looks back to find the
high and low price to set the current “center” for purposes of
determining if it should buy or sell.
CenterPrice (default = 1.0)
If 0.0, then the EA determines the center price using its old
method of looking back X days. If there is a number in here,
such as 1.03500, then that number overrides what the EA
calculates, and it is used as the center price in determining
whether to buy or sell.
Money Management and Safety
Forex Cantata 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.
Copyright © 2010-2013, Forex-Goldmine, Inc.
How Forex Cantata Works
The objective in designing Forex Cantata was to achieve a reasonable risk level in forex
trading while generating significant profits comparable to other forms of investment. The Forex
Cantata 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 have invented a new technology that throttles down
the growth of your lot sizes, which helps protect your account balance. The growth in lot sizes
is significantly less than with a martingale system, for example. This allows you to trade with
much less danger than with a martingale system. While no grid trading system is absolutely
100% safe, it is our belief that the methods we use to mitigate the dangers will go a long way to
help avoid the usual problems associated with the the typical martingale system. To our
knowledge, the Forex Cantata is the very first and only EA to use this new technology in
association with the grid method of trading.
Important Note
Even though the Forex Cantata EA uses the various tools to help the lot size expansion to be less
dangerous than normal, this type of system should still be respected as being potentially
dangerous if it is used 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.
For Moderate Risk Settings: Minimum balance in a standard account with 100K lot sizes would
be $4000, with $5000 preferred 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 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.
On Chart Display
Forex Cantata 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:
PipStrider II x.xx
Current Server Time
Account Leverage
EA name and release number
The current time according to your broker's server
The leverage on your account.
Spread
Shows the current spread for the currency pair.
Account Authorized
True or False – Shows whether EA is authorized for this account. True, if
your account authorized for trading. Demo accounts are always authorized,
but live accounts must have a license purchased in order to be authorized.
Copyright © 2010-2013, Forex-Goldmine, Inc.
Monitor And Close
Displays the current setting for the MontorAndClose setting. If true, the
EA will monitor the current trade sequence for each side, and will even
open additional trades if needed to carry the existing sequence to its
normal conclusion.
a buy or sell
sequence
closed,
Displays
the currentHowever,
setting ofonce
the DoTrades
setting.
If true,isthe
robota
DoTrades
will trade when the price is hit and the expert button is green, allowing
the order to be sent.
Balance Factor
Displays what you have in your BalanceFactor setting.
Current Equity Drawdown Percent
Shows the current percentage of drawdown on your account equity.
Trade Lots
This shows what you have in your TradeLots setting.
Base Lots
The starting number of lots for each Martingale series.
MagicNumber
Trade Direction (default=3)
Used to associate the trades of this EA to this EA.
Either Buy and Sell, Buy only, or Sell only. This is determined by the
TradeDirection setting. (0, 1 -1 or 3).
Center Price Where Trade Direction The price where the trade direction is calculated to change from sells to
Changes
buys or from buys to sells
Trade Range
The Trade Range in Pips for each trading grid level that is actually set in
the TradeRange setting.
Next Buy Price
The price at which the next buy trade will be taken.
Current Buy Level
Maximum Buy Level Reached
The current Martingale level on the buy side.
The Maximum buy martingale level reached historically in trading since
the last time this value was reset.
Next Sell Price
Current Sell Level
The price at which the next sell trade will be taken.
The current Martingale level on the sell side.
Maximum Sell Level Reached
The Maximum sell martingale level reached historically in trading since
the last time this value was reset.
Copyright © 2010-2013, Forex-Goldmine, Inc.
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