FRACTAL WIZARD VERSION 4.

0 (F RACTALS-4)
EXPERT ADVISOR QUICK START GUIDE

Disclaimer No claim is made by Forex Hope that the market information and/or trading methods shown in this manual will result in profits or will not result in losses. There is a substantial risk of loss in trading the Forex, or any other trading vehicle for that matter. Past performance is not indicative of future results. Trading the Forex may not be suitable for all recipients of this manual. Always seek competent professional advice when considering any trade. All examples in this manual are for educational purposes only. All material and examples in this manual are based on information obtained from sources that are believed to be reliable, but which are not guaranteed as to their accuracy or completeness. Nothing in this manual should be construed, in any way, shape or form, as a solicitation of any offer to buy or sell any trading instrument. Forex Hope and associates of Forex Hope have at times in the past and may now or at times in the future, trade or have traded any or all of the issues used as educational examples in the manual. Any thoughts or opinions expressed in this manual are subject to change without notice. No information provided in this manual should be construed in any way as an encouragement by the author, publisher or distributors to trade. Each trader must make his or her own decisions with regard to trading. Each trader must be responsible for his or her own decisions and his or her own actions, if any. Reading this manual or parts thereof constitutes acceptance of and agreement to this disclaimer and exempts Forex Hope, the author, publisher and distributors from any and all liability and litigation.

BASIC OF FRACTALS-4 EXPERT ADVISOR

Fractals-4 EA is a Combined High Volatility Breakout Trading and Low Volatility Breakout Trading System. High Volatility Breakout Trading High Volatility breakout trading systems can actually be considered another form of swing trading, (which is a style of short term trading designed to capture the next immediate move). In other words, the trading system is not concerned with any long term forecast or analysis, only the immediate price action. High Volatility breakout trading systems are based on the premise that if the market moves a certain percentage from a previous price level, the odds favor some continuation of the move. This continuation might only last one day, or go just a little bit beyond the original entry price, but this is still enough of a profit to play for. A trader must be satisfied with whatever the market is willing to give. With a breakout system, a trade is always taken in the direction that the market is moving at the time. It is usually entered via a buy stop or sell stop. The bit of continuation that we are playing for is based on the principle that momentum tends to precede price. There is also another principle of price behavior that is at work to create trading opportunities. That is, the market tends to alternate between a period of equilibrium (balance between the supply and demand forces) and a state of disequilibrium. This imbalance between supply and demand causes "range expansion", (the market seeking a new level), and this is what causes us to enter a trade. There are several ways to create short-term High Volatility breakout systems. I have found that different types of systems based on range expansion test out quite similarly. Fractals-4 trading the High Volatility breakout mode is by using "channel breakouts" which is shown by 2 blue lines at your MT4 chart.

If the price breaks, breakouts above or below the blue lines on your MT4 chart, then a trade is entered. (NOTE: the breakout times need to be in the trading time zone specified at the EA parameters).

Pros and Cons of Trading a High Volatility Breakout System: Like most systems, High Volatility breakout systems will clean up in high volatile or runaway markets but tend to thrash when conditions get choppy or volume dries up.

I believe they are still among the most profitable type of system to trade, and I also feel they will continue to be profitable in the long run. It is "durable" and "robust", though it tends to deteriorate when too large of an order is placed. Whipsaws are a drag but they are also inevitable when trading a breakout system. Many times Fractals-4 will buy the highs and sell the lows. It takes a great deal of "confidence in the numbers" to trade this type of system. Fractals-4 trading system has been testing with a minimum of 2 years. On balance, a High Volatility breakout system can be traded on most all markets. However, a market might be very profitable one year and yet perform mediocre at best the next. A portfolio of 2 to 3 High Volatility markets seems to work well. The problem with trying to trade too many markets at once is that it can become quite difficult to keep up with the activity level if your parameters are fairly sensitive. Low Volatility Breakout Trading System Low Volatility Breakout is a trading style specializing in taking profits on small price changes, generally soon after a trade has been entered and has become profitable in a Low Volatility market. It requires a trader to have a strict exit strategy because one large loss could eliminate the many small gains that the trader has worked to obtain. Having the right tools such as a live feed, a directaccess broker and the stamina to place many trades is required for this strategy to be successful. Low Volatility Breakout is based on an assumption that most currency pairs will complete the first stage of a movement (a currency pair will move in the desired direction for a brief time but where it goes from there is uncertain); some of the currency pair will cease to advance and others will continue. A Low Volatility trader intends to take as many small profits as possible, not allowing them to evaporate. Such an approach is the opposite of the "let your profits run" mindset, which attempts to optimize positive trading results by increasing the size of winning trades while letting others reverse. Low Volatility Breakout achieves results by increasing the number of winners and sacrificing the size of the wins. It's not uncommon for a trader of a longer time frame to achieve positive results by winning only half or even less of his or her trades - it's just that the wins are much bigger than the losses. A successful Low Volatility trader, however, will have a much higher ratio of winning trades versus losing ones while keeping profits roughly equal or slightly bigger than losses. The main premises of Low Volatility Breakout are:

Lessened exposure limits risk - A brief exposure to the market diminishes the probability of running into an adverse event.

Smaller moves are easier to obtain - A bigger imbalance of supply and demand is needed to warrant bigger price changes. It is easier for a currency pair to make a 10 pips move than it is to make a 100 pips move. Smaller moves are more frequent than larger ones - Even during relatively quiet markets there are many small movements that a Low Volatility trader can exploit.

Low Volatility Breakout can be adopted as a primary or supplementary style of trading. Primary Style A pure Low Volatility trading will make a number of trades a day, between five and 10 to hundreds. Low Volatility trader will mostly utilize one-minute charts since the time frame is small and he or she needs to see the setups as they shape up as close to real time as possible. Automatic instant execution of orders is crucial to a Low Volatility trader, so a direct-access broker is the favored weapon of choice. Supplementary Style Traders of other time frames can use Low Volatility Breakout as a supplementary approach in several ways. The most obvious way is to use it when the market is choppy or locked in a narrow range. When there are no trends in a longer time frame, going to a shorter time frame can reveal visible and exploitable trends, which can lead a trader to trade. Fractals-4 trade High Volatility Breakout Trading system at European trading hour and implement Low Volatility Breakout Trading supplementary style soon after US market closed. Fractals-4 has been tested to work on EURGBP, EURUSD and GBPUSD markets. RISK CONTROL: Fractals-4 use a Controllable Risk - the amount of risk which can be predetermined and defined by a money management (the percentage of your account equity you are willing to risk in one trade) combine with initial stop, break even point stop and trailing stop. There are 2 important parameters inside Fractals-4 to control risk: 1.RISK: Risk setting to control High Volatility Breakout 2.AGGRESSIVE SETTING: Risk setting to control Low Volatility Breakout Please read parameter descriptions section how to set the risk setting.

HOW TO RUN FRACTALS-4 EXPERT ADVISOR

This part of Quick Start Guide is to help you set-up the Fractals-4 on your Metatrader 4 system. Please read this Quick Start Guide very carefully and follow the simple steps provided to ensure that the EA is properly and correctly installed into your Metatrader-4 platform. Suggested Minimum Capital To start trading using Fractals-4, your account must have the suggested minimum capital. The suggested capital for each account is dependant on the account type: For Mini Lot-Size account like (example: FXCM), i.e. where the minimum lot size is 0.1 lot, the suggested capital is $10,000. For Micro Lot-Size account (example: FXPRO, FXDD), i.e. where the minimum lot size is 0.01 lot, the suggested capital is $5,000. For Nano Lot-Size account (example: InterbankFX Mini Account), the suggested capital is $1,000. Installation Please copy Fractals4EA.zip file into your MT4s experts folder directory and unzip there. Or you can unzip Fractals4EA.zip to any directory then copy these files below. You will receive four ex4 programs (1 ea and 3 indicators) and six preset files. Copy the files into the following folder: 1. Copy "Fractals4-XXX.ex4" EA into the MT4's experts folder. 2. Copy TrendWizard.ex4, PivotWizard .ex4, Osci l latorWizard.ex4 into your MT4's experts indicators folder. 3. Copy all DLL files (i.e. FRACTALS.DLL) into expert libraries folder. 4. Copy all preset files (*.set), ie: fractals4-eurgbp.set into your MT4s experts presets folder. Restart your Metatrader 4 software.

The EA Fractals4-BuildXXX will now appear under the Experts Advisors su bfolder. Attach EA into the following charts: Knowing what currency pairs to trade is the first step in trading Fractals-4. Use EA Fractals4-BuildXXX on the following chart: EURUSD EURGBP GBPUSD Open those following currency pairs on H4 timeframe and attach the EA to each chart. NOTE: Fractals-4 has been optimized to work best on those three currency pairs. In the futures, I may add more currency pairs into Fractals-4. No need to attach the three indicators into the charts, it will not show anything. But the EA need those indicators for its calculation. HOW TO ATTACH FRACTALS-4 EA (BUILD 910) IN YOUR MT4 CHART: When you want to attach the FRACTALS-4 EA Build 910 (Release October 2009) on your chart, you need to turn on Allow DLL Imports and turn off Confirm DLL function calls:

NOTE: Before you can run your Fractals-4 EA, you need to register your live/demo account at our member area first. Please read more information at parameter setting.

Use the preset setting provided on each chart: I already provide three presets for you. Each currency pair I provide 1 setting that I use on my forward test and back-testing report (or you can enter the settings at the table below). You can back test the EA yourself and change those preset values I provided. If you back test the EA, you can back test as far as 2-3 years before. No need to back test to the past 5-10 years before. First, because the forex market condition always change. Second, the EA has been calculated to work best with the past 2 years market conditions. How Fractals-4 enter a trade: Fractals-4 trading the High Volatility breakout mode using "Fractals-4 build-in channel breakouts" which is shown by 2 blue lines at your MT4 chart. If the price breaks, breakouts above or below the blue lines on your MT4 chart, then a trade is entered. The breakout time needs to be in the trading time zone specified at the EA parameters.

The following table shows the different settings for each currency pair: EURUSD Filename Risk Aggressive_Setting Take_Profit BEP Min_StopLoss Max_Open_Position EURGBP Filename Risk Aggressive_Setting Take_Profit BEP Min_StopLoss Max_Open_Position Fractals4-EURUSD.set 0.3 5 300 20 20 5

Fractals4-EURGBP.set 0.2 3 300 20 20 3

GBPUSD Filename Risk Aggressive_Setting Take_Profit BEP Min_StopLoss Max_Open_Position BACKTESTING RESULTS

Fractals4-GBPUSD.set 0.2 3 350 20 20 3

Please go to our website for our backtesting and forward testing results: http://forexbreakthrough.com/development/fractals-wizard/fractals-4-new-version/ Performance Note: Our back testing shows that EURUSD is the best choices. If you want to run Fractals-4 on 1 chart only I suggest run EURUSD. From back testing chart, you will notice that from time to time Fractals-4 will make several losses trades, your equity sometimes will be in drawdown period. It depends when you start and what is the market condition. Normally, Fractals-4 will have positive results on trending market or on high volatility time, and have poor results on whipsaw market or on low volatility time.

IMPORTANT: The point from the performance is, it is a matter of initial conditions that makes the difference. Any system is going to have periods of loss, no matter how good it is, or how great the back tested results are. However, over the long term, the gains of Fractals-4 will outstrip the losses-provided, of course, that whether we're in a cycle of loss or a cycle of gain, we always apply our trading rules with consistency and discipline. I suggest that you run Fractals-4 on several demo accounts (with variety of settings and time zones) at least 2-3 months; until you have consistent results over a specific period. I recommend to test Fractals-4 until you get at least 100 trades before apply into a live accounts.

FRACTALS-4 PARAMETERS DESCRIPTION

RegisteredAccNumber Before you can use your Fractals-4 on Live or Demo account you need to register the EA at our member area. Our member area locate at: http://www.forexhope.com Go to Forex Hope member area using your email address and password. Find Fractals to register your Fractal account number.

Input account number, you can input your live account. If you do not have live account, you can input your demo account number. Then input the same number that you registered in our member area to RegisteredAccNumber setting on Fractals-4 EA.

Note: you can run Fractals-4 for 1 live account only, but you can run several demo accounts as long as you input the same RegisteredAccNumber. Risk: This is the percentage of your account equity you are willing to risk in one trade for breakout system. NOTE: 1.0 means 1%, or 0.02 fractions. Type 0.02 means 0.02%, or 0.0002 fractions. Aggressive Setting: This is the additional risk setting for Fractals-4 Low Volatility Breakout method. IMPORTANT: I recommend that you set the risk settings NO MORE than 0.5% Risk and 5 Aggressive_Setting for ANY SINGLE CHART; OR 1% Risk and 10 Aggressive_Setting in the aggregate for all your trades (3 currency pairs). For example: If you run Fractals-4 EA at EURGBP and EURUSD only, you can set 0.5% Risk and 5 Aggressive_Settings for each chart. If you run Fractals-4 EA at EURGBP, EURUSD and GBPUSD, you can set 0.5%, 0.3%, 0.2% Risk and 5, 3, 2 Aggressive_Settings for each chart. You prefer Low Volatility Breakout trade more than High Volatility breakout strategy; you can set Risk=0.1% and Aggressive Setting=5. Take Profit: This is Fractals-4 breakout take profit target. The default is in pips. You can change the value to suit your individual preference. You can set it at a high number, such as 1,000. IMPORTANT: DO NOT SET IT TO ZERO! If you do, youll be taken out of the market as soon as your profit reaches zero. BEP: Tell Fractals-4 how many pips of profit you want to have before it activates the break even point stop loss. Min StopLoss: It allows you to say, After the trade reaches x pips of profit, I want to have my stop loss start n pips from the market. Max OpenPosition: This is the maximum open positions allowed at the same time.
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Automatic OffsetHour: Default Set to TRUE. When this default set to TRUE, the EA will automatically calculate the how many hours the difference between GMT time and your broker trading time. If you change it to FALSE, you need to set the Broker_OffsetHour parameter below. Broker OffsetHour: Fractals-4 uses several trading hours to seek entry signal for its breakout system and Low Volatility Breakout method. You need to set this parameter if your broker server time do not based on GMT. IMPORTANT Note on Time Zones: The trading hours inside Fractals-4 are based on Greenwich Mean Time (GMT), which is the Time Zone that most MT4 platforms are based (example: Interbankfx and ODL).

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If your MT4 platform is based on another time zone, then youll need to adjust Broker_OffsetHour to correlate with the Greenwich Mean Time. Example: If your MT4 broker server time based on GMT+2 like ALPARI UK, Then you need to enter 2 at Broker_OffsetHour. This is some of the broker server time that we know: INTERBANK-FX ODL TADAWULFX ALPARI INSTAFOREX FXDD FX OPEN =GMT = GMT =GMT+1 = GMT+2 =GMT+2 =GMT+3 = GMT+3

I suggest you need to consult with your broker about their trading hours before you use Fractals-4. Two Direction Trade: Sometimes Fractals-4 generates Long Low Volatility Breakout signals while there is open Short breakout signal. If your broker allows Long and Short positions opened at the same time (which produce more trades), you can set it to TRUE; otherwise set it to FALSE. ECN Market Order: You need to set TRUE if your broker is ECN broker like FXCM. Slippage: Enter the slippage in pips you are willing to accept. Max Spread Allowed: Enter the maximum spread in pips you are willing to accept. Do not set more than 4. Magic Number: Enter the magic number used by Fractals-4. You need this parameter if you run Fractals-4 with other EA. You can use the following parameters to stop Fractals-4 from opening any positions during volatile news. I suggest stop Fractals-4 EA from running on very volatile dates (i.e. NFP report, CPI report or Rate decisions, etc).

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You can get the schedule date at many forex news websites like http://www.dailyfx.com (look into calendar menu). StopTrading Date: This parameter tells Fractals-4 when you want to stop trading. Input specific date using yyyy.mm.dd format. ContinueTrading Date: This parameter tells Fractals-4 when you want to continue trading. Input specific date using yyyy.mm.dd format. Enable HighVolatility trade: Default set to TRUE. If you do not want the EA to open the High Volatility Trade (breakout trade) set this parameter to FALSE. Enable LowVolatility trade: Default set to TRUE. If you do not want the EA to open the Low Volatility Trade (scalping trade) set this parameter to FALSE. Manual Comment: Fill this parameter if you want to change the comment. For example, if you do not want the EA name showed at the comment section. IF YOU HAVE PROBLEMS OR DIFFICULTIES OPERATE FRACTALS-4: Open ticket at our support page, locate at: http://support.forexhope.com/ OR Send email to support@forexhope.com

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HERE ARE SOME TIPS FOR TRADING FRACTALS-4 EXPERT ADVISOR

1. Gain confidence with your initial trades. 2. Make sure you can successfully trade the system pure mechanically before attempting to add any discretion. 3. Track Fractals-4 actual performance against the back-test performance at the end of week, rating the success for each market condition. 4. Open several demo account and apply different parameters settings and different time zone settings. 5. Monitor performance over an adequate sample, perhaps 100 trades or a set number of weeks. Do not let a down week or several trades deter you. 6. It takes a great deal of "confidence in the numbers" to trade this type of trading system. Often whipsaws are a drag but they are also inevitable. Many times Fractals-4 will buy the highs and sell the lows, which produce some losses, until the big move arrive and produce huge profit. 7. Discretion Tips: If you want to combine Fractals-4 with some discretionary trading. Manage the exits rather than filter the entries. It is impossible to tell in advance which trades will be the good ones. The one entry skipped might be the BIG ONE, and one can't afford to miss it. Managing the exit means two things: The first, learn when it's okay to let that occasional great trade run an extra hour or two before getting out; the second (which really depends on one's skill level), learn to recognize a bit sooner when a trade is not working and exit just before the stop is hit. 8. Keep a notebook of your observations and patterns you notice. Try to find when to exit and when not to enter a specific trading zone for the specific market. In this way you truly "make Fractals-4 trading system your own". 9. If slippage seems excessive, it often suggests a significant breakout from a triangle or period of congestion. Remember: Something had to drive the market far enough to penetrate the breakout point in the first place! 10. Your capital reservation is the most important. Do not set Risk more than 0.5% and Aggressive_Setting 5 per trade or 1% and 10 Aggressive_Setting in aggregate. You need Fractals-4 to be able to go through the drawdown period during whipsaw market.

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FAQ: Can I use Fractals-4 trade the News? Yes. Having the advantage of knowing when a given report will be released, you can enter the time and the day you want the Fractals-4 to run. That way, you'll have a pending order in place for the specific time and day of the report. Of course, not all news reports move the market, so we focus on the ones that have the highest likelihood of movement. As you become familiar with Fractals-4, you will become familiar with which economic reports work the best, their average pip moves and best time-frames. The price breaks the blue line why does Fractlas-3 not initiate a trade? Fractlals-3 only initiate trade at the time zones you specified at the EA parameters. Fractals-4 start seeking High Volatility signals at European market. What is the expected Back Testing Performance/Forward Test Results? Weve spent the last 3 months with over our own internal 100 beta testers (some are our students from forex industry) working out all the bugs and errors, ensuring that the Fractals-4 forward testing is acting precisely according to the back testing results. And I expect the future performance of Fractals-4 match the forward testing weve done to date. When there is an update after the underground launch, what will happen to those who have the old version? You are eligible for all free updates as they become available. When there is an update, we will let you know via email, the members download page and the forum. If my computer crashes, or my Internet-connection drops out, and the market moves heavily against me ....... Could I suffer a catastrophic-loss? I do not foresee any circumstance that would cause a catastrophic loss. The worst that would happen is that you would be stopped out at your last stop loss. In other words, before the crash or disconnect, if you were in an open trade, the system would have also generated a stop loss order. That would protect you against any catastrophic loss.

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