Caliber Fx Pro

EA Portfolio
Trading System
USDJPY – EURUSD - GBPUSD
Table of Contents
Caliber FX Pro – Portfolio Robots ................................................................................. 4
Caliber FX Pro Trading System Indicators .................................................................... 4
ZigZag Indicator ............................................................................................................. 5
Long Entry Overview ..................................................................................................... 7
Short Entry Overview .................................................................................................... 7
Final Exit ......................................................................................................................... 7
INPUTS ........................................................................................................................... 8
Portfolio Robot DEFAULTS ....................................................................................... 8
Money Management ..................................................................................................... 9
Risk % ...................................................................................................................... 9
Lots ................................................................................................................................ 11
Hidden Stops ................................................................................................................. 11
Stop Loss ....................................................................................................................... 11
Profit Target ..................................................................................................................12
Use Trailing Stop and Trailing Stop .............................................................................13
Break Even Trigger .......................................................................................................13
ECN Brokers ..................................................................................................................13
5 Digit Brokers...............................................................................................................13
Optimization Course Defaults ..................................................................................... 14
Forex Market Overview .............................................................................................. 18
FX Caliber Support Team ............................................................................................. 22
DISCLAIMER
U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options
trading has large potential rewards, but also large potential risks. You must be aware of the risks and be
willing to accept them in order to invest in the futures and options markets. Don't trade with money you
can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No
representation is being made that any account will or is likely to achieve profits or losses similar to those
discussed on this web site. The past performance of any trading system or methodology is not necessarily
indicative of future results.

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 on this website or any e-book purchased from this website is for educational purposes only
and is not intended to provide financial advise. Any statements about profits or income, expressed or
implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is
guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold Caliber
FX Pro and any authorized distributors of this information harmless in any and all ways. The use of this
system constitutes acceptance of our user agreement.
Caliber FX Pro – Portfolio Robots
Diversification in is one of the keys to successful trading, whether that be via
manual or robot trading. Diversification means you are ‘not putting your eggs in
the one basket’ and are taking positions simultaneously in other markets
offsetting potential risk.

The Caliber FX Pro was designed and optimally performs on the USDJPY currency
pair, but has also been optimized to also trade on the GBPUSD and EURUSD pair.

Caliber FX Pro Trading System Indicators

• MT4 (custom) ZigZag Indicator
• MT4 (custom) OsMA Indicator

Predominately the Caliber Robot follows a Trading System that is based upon two
MetaTrader 4 custom indicators called the ZigZag Indicator and the OsMA
Indicator.
ZigZag Indicator

The Zigzag Indicator (red zigzag line) is a good visual indicator of the main overall
trend movement of the price movement of a market via identifying peaks and
troughs, but isn’t the best type of indicator to determine an entry into the market.

Therefore we have introduced the OsMA indicator for pin pointing the entries and
exits. The MT4 OsMA is used as over bought and oversold indicator.
So two very nice and simple indicators have been added to the chart.

Both of these indicators can be found within MT4 – Insert/Indicators/Custom...

Now the combination of the Entries, Exits, Take Profit with Risk and Money
Management...
Caliber FX Pro Trading System
Long Entry Overview
Essentially the robot is looking for the simultaneous event of both the ZigZag
indictor must be pointing upward whilst there is ‘x’ number of UP OsMA bars (this
number of bars varies depending on the different currency pair defaults).

Short Entry Overview

Just the opposite of the long entry, here the robot is looking for the simultaneous
event of both the ZigZag indictor must be pointing downward whilst there is ‘x’
number of DOWN OsMA bars (this number of bars varies depending on the
different currency pairs).

Final Exit
The robot will make the final exit when there is ‘X’ input number of OsMA bars
into the opposite direction of the trade. Eg; A long trade would mean the trade
would exit when there are ‘X’ number of down OsMA bars.
INPUTS

Portfolio Robot DEFAULTS

Money Management
This setting must be on TRUE to work, otherwise the LOT setting will dominate.

Risk management is the most important component to trading. It is always best

to work on the basis of a “worst case scenario” and this is managed through your
‘position sizing’.

In the FX Caliber there are two settings which can be used to determine the
POSITION SIZING that the robot will take on each new trade.

1. RISK %
2. or standard LOTS

Risk %

The RISK – the FX Caliber default is set on 2%.

This means that the robot will automatically calculate the appropriate number of
Lots it enters into for every new trade according to the newest account balance
after the last trade.
For example, If your starting balance is $5,000 and your risk is set at 2% this means
for each trade you do not want to risk more than $100 on each trade. If the Stop
Loss was set to 100 pips from the entry, and if your Accounts pip value is 10cents
per pip movement, then your risk is $10 per every 1 lot (100x 10ct).

Then the robot calculates; $100 divided by $10 = 10 Lots it can enter into.

If your trade is profitable and you make a $200 profit – on the next trade the robot
automatically makes the same calculation but on the new $5,200 balance.

This is the better setting as you know exactly how much of your account you are
risking on each trade and when successful the new position size is compounded
and should you have a run of losses the robot reduces the position sizing so that
you keep within balance. Turn the default figure down if 2% is too much.

To use the Risk % you need the MONEY MANAGEMENT to be set to TRUE to work
– otherwise the Lot setting will dominate.
Lots
The Standard LOTS gives you the ability to override the RISK % setting – make sure
you set the MONEY MANAGEMENT to False for this to become active.

This means your EA will continuously purchase the same number of lots that you
have requested for each trade until instructed otherwise.

Hidden Stops
This setting is for traders should they wish to hide their stop losses from Brokers.

Stop Loss

As soon as the Caliber Robot takes a new trade it will immediately place a Stop
Loss to the order at ‘X’ pips from the entry price (X = the default setting each
particular EA currency pair).

This means should the market go against you at some point and reach that
distance the trade will automatically be closed out.
Profit Target
The Caliber Robot will also Take Profit and capture half of the positions profits by
closing out half (50%) of your Lots when it reaches the ‘X’ pip Profit Target. This is
great in fast moving markets that may suddenly reverse.

So for the USDJPY Caliber if you took 2 Lots for a trade and the value per pip was
$1. That means your total risk on the trade is $200 (100 pip SL x $1 x 2).

Once the market reaches the 200 pip Profit Target (should the Break Even tool not
be used...see next page), the Caliber Robot automatically closes out 1 Lot (50%)
and that means you now have $200 in the bank. The remaining risk is now left at
the 1 remaining lot with the Stop Loss still 100 pips from the entry price ($100). So
your $200 profit covers the $100 remaining risk plus puts $100 profit into your
pocket should the initial Stop Loss be hit.
Use Trailing Stop and Trailing Stop
Although the default settings do not require the trailing stop loss for peak
performance, this function is there for traders who would like to use a trailing
stop loss for peace of mind and lock in profits earlier.

Just remember that at times a trailing stop loss can hinder good trades by being
too close to the market price action.

Break Even Trigger

The Caliber Robot also has further built in optional profit protection and risk
minimisation tools, this one comes in the form of moving the Stop Loss to break
even (entry price) when a certain level of profit has been reached.

The USDJPY Caliber has been programmed with a 40 pip profit breakeven point.

So once the market has moved 40 pips into profit the Stop Loss is immediately
brought up to the entry price protecting the position should the market suddenly
reverse.

ECN Brokers
If your broker is an ECN broker ensure this is set to TRUE

5 Digit Brokers
If your broker displays prices with 5 digits (# of digits after decimal point for all
pairs except USDJPY) ensure this is set to TRUE.
Optimization Course Defaults
As mentioned, the performance results for the Caliber are for the 12 month period
of 2009, (all input settings are noted further below for 2009). We also include the
2010 settings below too. For any traders who have purchased the Optimization
Course these are the default settings for each pair so you now have the ability to
optimize the entire robot. Most of the advanced EA input settings are ‘hidden’ but
an ‘unlocked’ version of the Caliber EA comes with the EA Optimization Course
which teaches you how to continually optimize the EA to best performance over
changing market conditions and even tune to any currency pair. OPTIMIZATION
COURSE and EA - Follow this link

USDJPY – DEFAULTS - 2010

• OsMA Min=17
• OsMAMinEXIT=20
• OsMAFast =16
• OSMASlow=34
• OsMASignal=2
• ZZDepth=22
• ZZDeviation=16
• ZZBackstep=6
• ZZExit=True
• UseMM=True
• Risk=2%
• Hidden Stop=False
• SL=50
• TP=80
• Use Trail=False
• Trail=30
• BETrigg=40
• BEBuffer=10
GBPUSD – DEFAULTS – 2010 (no change)

• OsMA Min=10
• OsMAMinEXIT=14
• OsMAFast =20
• OSMASlow=15
• OsMASignal=14
• ZZDepth=16
• ZZDeviation=16
• ZZBackstep=6
• ZZExit=True
• UseMM=True
• Risk=2%
• Hidden Stop=False
• SL=50
• TP=190
• Use Trail=False
• Trail=30
• BETrigg=40
• BEBuffer=10

EURUSD – DEFAULTS - 2010

• OsMA Min=7
• OsMAMinEXIT=9
• OsMAFast =8
• OSMASlow=14
• OsMASignal=12
• ZZDepth=14
• ZZDeviation=20
• ZZBackstep=4
• ZZExit=True
• UseMM=True
• Risk=2%
• Hidden Stop=False
• SL=20
• TP=250
• Use Trail=False
• Trail=30
• BETrigg=40
• BEBuffer=10
USDJPY – DEFAULTS - 2009

• OsMA Min=12
• OsMAMinEXIT=20
• OsMAFast =14
• OSMASlow=40
• OsMASignal=14
• ZZDepth=16
• ZZDeviation=16
• ZZBackstep=6
• ZZExit=True
• UseMM=True
• Risk=2%
• Hidden Stop=False
• SL=100
• TP=200
• Use Trail=False
• Trail=30
• BETrigg=40
• BEBuffer=10
GBPUSD – DEFAULTS - 2009

• OsMA Min=10
• OsMAMinEXIT=14
• OsMAFast =20
• OSMASlow=15
• OsMASignal=14
• ZZDepth=16
• ZZDeviation=16
• ZZBackstep=6
• ZZExit=True
• UseMM=True
• Risk=2%
• Hidden Stop=False
• SL=50
• TP=190
• Use Trail=False
• Trail=30
• BETrigg=40
• BEBuffer=10

EURUSD – DEFAULTS - 2009

• OsMA Min=20
• OsMAMinEXIT=16
• OsMAFast =16
• OSMASlow=10
• OsMASignal=14
• ZZDepth=10
• ZZDeviation=2
• ZZBackstep=6
• ZZExit=True
• UseMM=True
• Risk=2%
• Hidden Stop=False
• SL=30
• TP=180
• Use Trail=False
• Trail=30
• BETrigg=40
• BEBuffer=10
Forex Market Overview

• Currencies values are forever fluctuating, their value is measured up to

another currency; the two currencies together are referred to as a “pair”.
• There are two groups of “pairs” – the Majors and the Crosses. These two
names distinguish the difference between the more popular (the Majors)
and the less traded (the Crosses).
• Pairs are abbreviated, for example the Euro Dollar against the US Dollar is
displayed as EUR/USD. The first currency, eg the EUR, is the “base”
currency and the second currency, the USD, is the “counter” currency.
• The Majors are; EUR/USD, AUD/USD, GBP/USD, USD/JPY, NZD/USD,
USD/CAD, USD/CHF.
• The quotation of the price in Forex is either in 4 decimals or 5 decimals. So
quite different to the usual 2 decimals we are used to in normal everyday
money exchange. Normally if something was priced at $1.50 and increased
in price by 1 cent the new price would be $1.51. But in currencies this 1 cent
increase is actually a massive move in forex trading and is actually quoted
as 100 “pips”.
• Price movement is quoted in PIPs, which is short for ‘Price in Points’ and are
only a fraction of a cent (1 hundredth of a cent), so are quite tiny and the
very reason for the requirement of such large leverage in Forex trading to
make the profits on these small price movements worthy.
• Prices are displayed with 4 digits like this; 1.5000. Some Brokers quote in 5
digits for more accuracy in price quotation; 1.50000.

The PIP is read as the last digit on the right, so if the market
increased by 4 pips the price would now be quoted as;

1. 5004

If the market increased by 100 pips the markets new price

would be displayed instead as;

1.5100

The only differently quoted currency is the Japanese Yen

which looks like this:

104.50

• The Leverage is a great attraction of forex – this means you put down a
small deposit to trade larger sums of borrowed currency – so this opens
this investment vehicle up to smaller investors. But remember, be smart
with your leveraging, do not go beyond your knowledge!
• Another exciting feature is that the potential risk in forex trading is
‘limited’. This means at the very maximum you can only lose the balance of
your trading account. I know that still may sound significant, especially if
you had quite a few thousand dollars in there – but my point is, other
instruments like Futures and Derivatives can run the account into the red, a
 negative balance. (A stop loss is a safety mechanism where your trade is
automatically liquidated should the market go against you and reach
predetermined exit level).
• As a trader, it is your responsibility to ensure that your positions are
monitored. Should they get close to your Brokers margin policy minimum
then you need to either put more capital into your account, or increase your
leverage (which decreases your margin).Some brokers will close out all
your positions regardless if they are a losing trade or in profit – so be
mindful of this and check out your brokers margin policy carefully,
otherwise you would be very disappointed to be closed out of a good
trade, one that could have made up for the losses of the bad ones that
brought you into the losing situation in the first place. Your trading
platform may have an alert system that makes you aware your account is
getting low, however when the markets are moving fast there may not be
enough time for you to make any adjustments.
• Currencies are traded by ‘Lots’ and these determine the value of the pip
movement. The size of each lot depends on what type of trading account
you have opened; a Standard account or a Mini account or a Micro Account
or a Learner Account. The difference between them is the minimum lot
sizes available to trade.

Standard Account minimum is 100,000 currency units (1 lot),
value per pip movement = $10.

Mini Account minimum is 10,000 currency units (1 lot), value
per pip movement = $1.

Micro Account minimum is 1,000 currency units (1 lot) , value
per pip movement = 10 cents.

Learner Account minimum is 100 currency units (1 lot) , value
per pip movement = 1 cent.

• No Commissions or Brokerage! Well the brokers actually make their money

through the “spread” is how the brokers make their money. When trading
stocks both a spread and brokerage are charged to the trader. But the main
cost to a currency trader is the spread. Spreads are generally not fixed so
can widen during times when news is released and there is high market
activity, so is not a defined amount. Some Forex brokers do charge a flat
brokerage rate so the charge is a little more transparent. The dealing
spread is the price difference between the Bid and the Ask.

The BID is the price that the Trader SELLS to the Broker and
which the broker BUYS from the Trader for.

The ASK is the price that the Trader BUYS from the Broker and
which the broker SELLS to the Trader for.
FX Caliber Support Team

support@caliberfxpro.com