Q-DIAMOND FX II FOREX SYSTEM

EXPERT ADVISOR FOR METATRADER4

INSTRUCTION MANUAL

2009

The Q-Diamond FX II Forex System is meant to be used only for your own personal purposes. You are not allowed to copy, lend, sell, publish or give the system, or any part of it, to the third party. If the system was sent to you to be used only on demo account, you are not allowed to use it for investing real money. www: www.qdiamondsystems.com Contact: qdiamond.ea@gmail.com info@qdiamondsystems.com

CONTENT
Content........................................................................................................................................3 1. Installation...............................................................................................................................4 1.1. Files..................................................................................................................................4 1.2. Running the MetaTrader4 and the EA.............................................................................5 2 Setting up the external parameters...........................................................................................6 2.1. ECNBroker.......................................................................................................................6 2.2. MagicNumber..................................................................................................................6 2.3. Slippage............................................................................................................................6 2.4. Alert.................................................................................................................................7 2.5. StopLoss, ProfitTake........................................................................................................7 2.6. lotsstart, amountstart, growthmanagement......................................................................7 2.7. minilots.............................................................................................................................8 2.8. Buy, Sell...........................................................................................................................8 2.9. Timecheck, hour00, hour01, ... , hour23..........................................................................8 2.10. MaxCount.......................................................................................................................9 2.11. timezone.........................................................................................................................9 3. Optimization and backtesting................................................................................................11 4. Risk Disclaimer.....................................................................................................................12

1. INSTALLATION
Q-Diamond FX II Forex System is the expert advisor programmed for the MetaTrader4 software. It is not supposed to be running under any other trading platform. The system works well with both, 4 and 5digit brokers.

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First of all, please make sure that you have the most current version of the MetaTrader4 software properly installed on your computer. More information about this software and the files for download can be found on metatrader.net 1.1. Files Please, check that you have received all the necessary files from us. The package of Q-Diamond FX II Forex System MUST include all of the following files: 1. 2. 3. 4. 5. 6. 7. Q-diamond indi07aII.ex4 Q-diamond indi07aII short.ex4 Q-diamond indi07bII.ex4 Q-diamond indi07bII short.ex4 qdiamondfxii.dll msvcr100.dll Q-diamond FX II ea XXXXXXXXXX.ex4

the first four files from the list are the indicators and should be saved into subdirectory experts/indicators. the .dll files qdiamondfxii.dll and msvcr100.dll are the library files good for the code security and the licensing process. Please, save qdiamondfxii.dll into experts/libraries and msvcr100.dll into your Windows/System32 folder (if using 32bit Windows) or into your Windows/SysWOW64 folder (if using 64bit Windows)1. Do not forget to allow DLL imports (Tools Options Expert Advisors Allow DLL imports). the last file Q-diamond FX II ea XXXXX.ex4 (the full name depends on the type of package purchased) is the expert advisor itself and should be saved into subdirectory experts.

After the installation you should see the alert message Q-Diamond FX II Forex System Licence OK. In case of any error message the system will not run properly. If error 126 (cannot load library files) is shown in your Journal tab, dll files are not saved correctly.

1.2. Running the MetaTrader4 and the EA. Run the MetaTrader4 and make sure to proceed through the following steps: 1. 2. 3. 4. 5. Login to your demo or live account Open the chart with the desired currency pair Change to desired timeframe Attach the Q-diamond FX II Forex System expert advisor to the chart Allow Live Trading2. smile face with the name of the expert advisor must be visible in the upper right corner of the chart. 6. Uncheck Ask manual confirmation box in Expert advisor properties.

Before allowing the live trading, please make sure that you have set up all the external variables properly. More about this in Chapter 2 of this manual.

2 SETTING UP THE EXTERNAL PARAMETERS

Setting up the external parameters of the system is very important as you can, among others, adjust the behaviour of the system according to your risk appetite. Thus, pay proper attention to all parts of this chapter. Please, open the expert advisor properties window (right click on the chart window Expert advisors Properties..., or press F7) and follow us through all the pre-set parameters. 2.1. ECNBroker Pre-set value of ECNBroker: False In case your broker doesnt allow you to set the stop loss and take profit values at the time the trade is open (mainly all ECN/STP brokers), please set this parameter to True. In this case, each trade is initially open with empty stop loss/profit take values and immediately after that these values are modified according to the EA requirements. 2.2. MagicNumber Pre-set value of MagicNumber: 1111 This parameter helps the EA to identify the trades open by Q-diamond FX II. You can change this parameter according to your wish, however in case you use more Expert Advisors on one account, make sure that all the magic numbers of all Expert Advisors are different. 2.3. Slippage Pre-set value of Slippage: 0 The brokers are sometimes not fully effective at executing the orders. Although the Q-Diamond FX II Forex System is quite robust against such inefficiency and includes special trading feature which minimize it, you have still the possibility to modify this parameter to make sure your trade will be always executed. During backtesting and demo forward testing, you can keep this parameter at 0. If trading on live account, you may set this parameter to 3, 4 or 5 (depending on the broker) but it is not really necessary.

2.4. Alert Pre-set value of Alert: False In case you are in doubt whether the system is properly installed on your MetaTrader4 platform, please set this parameter to True. You should now see the Alert Text Message EA Q-diamond FX II successfully downloaded and working. failing which probably mean the incorrect installation of the system try to re-install the system according to the Chapter 1 or/and contact our support team. 2.5. StopLoss, ProfitTake Pre-set value of StopLoss: 0.0135 Pre-set value of ProfitTake: 0.0010 Type in the desired value of your stop loss and profit take in pips/10000 without the spread. However we strongly recommend keeping these parameter as default. In case you need to change the StopLoss value (eg. for backtesting optimization purposes) it is necessary to keep the StopLoss value over 50 pips (more than 0.0050), otherwise the whole system will not work properly. 2.6. lotsstart, amountstart, growthmanagement Pre-set value of lotsstart: 0.5 Pre-set value of amountstart: 10000 Pre-set value of growthmanagement: true Note: if backtested, change the initial deposit (Expert Properties Testing Initial Deposit) to be equal to amountstart. These parameters are the first ones that help you to adjust the overall undertaken risk. Generally, they say, how much you are willing to invest within every single trade. CASE A: growthmanagement value is set to False In this case, the amount of lots of every trade is constant and is given by the value of lotsstart. (amountstart value is irrelevant in this case). Minimum value is 0.1, while the maximum value is 100 lots. It does not matter how much money you have or how much you have earned so far, the amount of lots is always the same, constant.

If youre willing to increase the lots automatically as your account balance increases, you have to use the growthmanagement tool (as follows). CASE B: growthmanagement value is set to True In this case, the amount of lots of every trade is given by the constant ratio of initial lots (lotsstart) and initial amount (amountstart). The system is continuously tracking the greatest value of equity reached and sets the lots of every trade accordingly. For example, within the pre-set values the system buys/sells 0.1 lots of given currency on every 10 000 dollars (or other currency used) of the maximum equity reached since the system was turned on3. E.g., in case there was 20 000 dollars equity on your account, than the amount of the forthcoming trade would be 0.2 lots.

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Please, make sure, that you fully understand the mechanism described above. If you have any doubts, dont hesitate to contact us for further explanation.

2.7. minilots Pre-set value of minilots: false In case that your broker allows you to use minilots (less than 0.1 units of lot), you can set the value of this parameter to true. After that, you will be able to set the lotsstart parameter to less than 0.1 (minimum would be 0.01 and maximum 100). 2.8. Buy, Sell Pre-set value of Buy: True Pre-set value of Sell: True These parameters let the permission regarding the trade direction to your discretion. Shall you be, for any reason, persuaded that the EA should not be taking either Buy or Sell trade, set the respective direction to False. However, we recommend keeping these parameters as default. 2.9. Timecheck, hour00, hour01, ... , hour23 Pre-set value of Timecheck: true Pre-set value of hour00,...,hour23: true
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The system saves the maximum equity within a special file on your computer and deletes it after the system is turned off/on.

Although the Q-diamond FX II System handles very well the unexpected huge market movements, in case you want to lower the anticipated risk, it is advisable to turn the Expert Advisor off if such huge movements are expected (especially FED, ECB meetings, important data release etc.). Timecheck is a special function which forbids the trades during the times which are generally considered as dangerous for FOREX trading. If Timecheck is set to true, there will be no trade during the start and end of the week sessions.

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We strongly recommend keeping this function turned on. According to your market movement expectations and new data release calendar, you can manually forbid opening new trades during particular time period of the day. E.g. you go to work in the morning and turn on the Q-diamond FX II EA. You know, for example, that at 9.30 of your server time there will be an important news release, you can forbid trading from 7.00 till 11.00 simply by setting the values hour07, hour08, hour09 and hour10 to false.

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If interested in this feature, turn the system off at least one hour before and one hour after the time of high importance data release. On the day when very important data are going to be released (such as FED rate decision etc.), we strongly advice you to keep the system turned off for at least half day. 2.10. MaxCount Pre-set value of MaxCount: 5 MaxCount value restricts the maximum number of trades that can be open (unclosed) at one time. The Q-Diamond FX II System is optimized for MaxCount set to 5 and we recommend keeping this parameter at this default value. In case you set this parameter to less than 2, the system cannot use the main strategy it is based on. On the other hand, if you increase the MaxCount, you increase the profitability but also increase the possible drawdown. MaxCount Profitability Possible drawdown

2.11. timezone

Pre-set value of timezone: 0 You have to set this value according to your server time in relation to CET (Central European Time) which is valid in almost the whole Europe4. If your server time runs ahead of CET(CEST), add hours accordingly. E.g. if your server time is CET + 2 hours, then set the value of timezone to 2. And vice versa, if your server time is e.g. CET 5 hours, then set the value of timezone to -5. For Q-Diamond FX II system, this parameter is important only for avoiding the trading during the beginning and end of the trading week. In case you are in doubt about setting this parameter, please inform us which broker you currently use and we will send you the correct TimeZone parameter.

Compare for example with http://en.wikipedia.org/wiki/Central_European_Time

3. OPTIMIZATION AND BACKTESTING

We have run thousands of backtests and optimized the system for the GBP/USD currency pair and five minute chart.

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It is not possible to use Q-Diamond FX II Forex System on any other pair than GBP/USD. In case you try to break through the security or use any other timeframe, it may cause you big losses. It is strongly advisable to download reliable data set before starting the backtest. For our purposes, we have used the time series downloaded from the MetaTrader server. The system uses M1 and M5 data sets of GBP/USD currency pair. Make sure that your backtest report shows 90 % modelling quality.

4. RISK DISCLAIMER

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Before investing real money, please, pay attention to this disclaimer. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your monetary objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your deposited funds and therefore you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent advisor if you have any doubts. Past returns are not indicative of future results. FOREX market conditions are not stable and are changing over the periods of time. Any FOREX market system might eventually fail if the market conditions change dramatically. We strongly advise you to do proper back and forward tests of any system on your demo account before investing real money. We are not responsible for any losses that might occur by using our Q-Diamond FX II Forex System.