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FX ARCANUM System Manual
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Risk warning. Before you begin trading on Real account please carefully consider your investment goals, risk and experience you have. It should be noted that Forex is a leverage based market. It should be remembered that leverage can work both in your advantage and disadvantage as well. Therefore there is high risk of losing a part or all of your financial input placed on your account and because of that you should remember to trade with the amount of money which you can lose without taking any influential financial damage.
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Installation
Launch the MT4 platform. Select the 'File' tab and then 'Open Data Folder'.
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Copy .tpl files to the 'templates' folder. -
FXAMscalp.tpl FXAMdaytrading.tpl FXAMswingtrading.tpl
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Go back to the main folder and select the 'MQL/indicators' folder. Copy the remaining system files.
Restart MT4 platform.
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Select the currency pair you are interested in. Press the right mouse button on the chart and select an appropriate template.
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m1 timeframe: m5, m15 timeframe: h1 timeframe:
FXAMscalp.tpl FXAMdaytrading.tpl FXAMswingtrading.tpl
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System is ready.
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System overview The system is comprised of two parts. The first one is investors' levels of interest. The levels are represented by horizontal lines on the chart. Thick line shows us long-term interest. Thin line shows us shortterm interest. Let’s discuss it on a simple example.
Thick line (1) shows us a long-term interest. Investors were interested in activity around that line throughout the past several days/hours (depending on the TF we chose). Thin line (2) shows us a short-term (current) interest. Investors have been making transactions around that zone throughout the past several minutes or hours (depending on the TF we chose).
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How to use it practically? It is very simple. The lines' arrangement tells us about the currently dominating sentiment on a given currency pair. Thin line under thick line - bear market - we sell.
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Thin line over thick line -bull market - we buy.
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The second part of the system is an algorithm that analyzes prior behavior of the price and on its basis calculates probable places for further movement.
Buy signals are represented by blue candles.
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Sell signals are represented by red candles.
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These two elements combined will give us top quality signals.
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Trade examples
Sell Trade example
1. Thin line is under thick line. The trend is down, only sell signals are taken into account. 2. Signal for sell: red candle + MT4 alert.
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Several minutes later.
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Sell Trade example
1. Thin line is under thick line. The trend is down, only sell signals are taken into account. 2. Signal for sell: red candle + MT4 alert.
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Buy Trade example
1. Thin line is over thick line. The trend is up, only buy signals are taken into account. 2. Signal for buy: blue candle + MT4 alert.
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Several minutes later.
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Buy Trade example
1. Thin line is over thick line. The trend is up, only buy signals are taken into account. 2. Signal for buy: blue candle + MT4 alert.
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Several minutes later.
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Despite the trend determined by the lines' arrangement, the system can show both sell and buy signals. In such a case, we should only consider signals in agreement with the sentiment determined by the lines.
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If you observe the market and expect a signal, do not worry about a change in position of the long-term line (thick line). It changes very rarely, depending on the TF you trade on, it changes its position only every several hours or even days (in case of swing trading). Pay more attention to the line showing short-term interest (thin line) and its position relative to the long-term line. Here is how an exemplary day goes in case of daytrading, timeframe: m5.
Thick line shows the investors' long-term interest. As we can see, the market shows growth tendencies. The thin line representing short-term interest is above the thick line, there are also buy signals in the form of blue candles.
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A few hours later the market still shows growth tendencies. You can notice that the thin line slowly moves away from the thick line, which means increased interest in higher prices. The thin line is above the thick line.
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Another few hours later. The thin line has once again changed its position to a higher one and remains above the thick line. We can notice that all buy signals ended with profit.
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The closer the lines are to each other, the weaker the trend is. It could mean that the market is in accumulation phase or has not yet decided in what direction it wants to go. In such case it’s better to wait and watch the thin line and it’s position compared to the thick line or simply look for trade on another pair.
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Where to put Stop Lose.
SL order should be placed at the last swing high (for sell trades) or at the nearest resistance level (if close).
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SL order should be placed at the last swing low (for buy trades) or at the nearest support level (if close).
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Where to put a TP order. Firstly, take note of the trade momentum. Does the price move dynamically or does it remain in one place for a long time? Based on that, you can determine your expectations as a simple R:R balance. This example shows how the price has dynamically broken after a buy signal. Such trade can easily bring 2-3R.
What is R? R is short for risk. For example, if we risk 20pips as our SL. Then, take profit set to 1R will also be 20pips. If we want to realize profit on 2R, it will then be 40pips. 3R will be 60pips, etc. Take note of relevant S/R levels as well, as the price can encounter significant resistance after reaching them.
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When to use a break even order.
An open order that generate profit can be secured by a BE order. For example, if your trade generates profit of 1R and the price moves very dynamically, you can use a BE order which will secure this transaction in case the price reversal. Also remember that BE can sometimes deprive you of potential profit, as it sometimes happens that a price take a significant turn and then gets back to its trend.
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A handful of advice: - glance through the calendar of economic news before each day of trade. If there are some important 'red' news, it is best to wait until they are announced. - pay particular attention to days in the calendar where the most important news are, like: non-farm payrolls, ECB press conference, FOMC. These news are crucial to the market and sometimes investors will wait outside of the market for their announcement. - do not worry if you are late for a signal. It is better to wait for another trade than get into one that has already been on its way a long time and may very well turn back. - the system can be used on any MT4 platform instrument. However, we recommend you stick to 'majors' due to low spread and good liquidity. - take note of individual days of the week. This is usually how a week goes: Monday - investors get back to work and perform initial analysis (possible low dynamics). Tuesday - an exchange of information between banks and investors gets underway, movement becomes more dynamic. Wednesday - the market has settled for a direction and follows it. Thursday - movement reaches its maximum level, everyone attempts to join it. Friday - profit realization and partial position closure before the weekend (possible sudden and unpredictable movements).
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If you have any questions please do not hesitate to contact us at: [email protected]
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