Owner's Handbook - Fibonacci Trader

I F T NSTALLATION HARDWARE SECURITY LOCK Fibonacci Trader uses a hardware lock to ensure that only authorized users can run the program. The software cannot be installed properly nor will the program run without the security lock in place. The hardware lock is an electronic device and should be handled with care. Avoid touching the ends of the lock. You can transport the lock between locations, such as home and office, without fear of damaging it, but do remember that it is an electronic device. Step 1 Exit your programs and switch off your computer. Step 2 The security lock fits between your computer and printer (if you have one). If you have a printer attached to the standard parallel printer port, disconnect it. Step 3 Attach the hardware key lock directly to the empty parallel printer port on the back of your computer. Only one end of the key lock will fit, so it cannot be put on backwards. Notice that one end of the lock is marked computer. Step 4 If you have a printer, (re)connect the printer cable to the now exposed end of the hardware security lock. Make sure all connections are snug. Step 5 If you have screws on the end of your printer cable that is attached to the hardware key lock, tighten them and also tighten the hardware key lock’s own screws in order to hold it firmly to the computer. If you have more than one security lock, then “piggyback” them, putting the Fibonacci Trader lock first (nearest the computer). The program has run successfully with as many as four locks attached. Nevertheless, if one of your programs requiring a security lock fails to run, try switching the order of the locks. With the lock now properly installed, proceed with the installation of the software. FIBONACCI TRADER Page 4

I F T NSTALLATION INSTALLING THE FIBONACCI TRADER PROGRAM The following steps will load the program and test files onto your hard disk. Step 1 Switch on the computer and start Microsoft Windows. Step 2 Put the Fibonacci Trader CD in your CD Drive. Step 3 Click on Start from the tool bar, click on run, click on Browse and find the CD Drive. Select Setup.exe, then click Open, and then click Run. Step 4 Follow the instructions on the screen. You Are Now Ready To Run The Program: Click on Start, click on Programs, click on Fibonacci Trader, and then click on the Fibonacci Trader program icon. The Fibonacci Trader 3.0 offers many new features. FIBONACCI TRADER Page 5

M MT F AIN ENU THE MAIN MENU The Main Menu is a set of pull down menus listed below the caption bar. The main menu includes the File, Plan, Indicators, Systems, FT Tools, Windows, Utilities, and Help. Main Menu Let’s start with the File Menu. Left click on the File menu and you can now access the ability to create,edit and delete contracts, and edit and list contracts. Here you can also set up your printer as well as exit the Fibonacci Trader. FIBONACCI TRADER Page 6

C F T ONTRACTS NEW CONTRACTS Contracts are all of the markets you wish to track, such as stocks and indexes. Go to the File Menu and select Contracts, and then New Contract for creating a new contract. When you click New Contacts the window below opens. Follow the steps below. 1) Click on Manual or End of Day. For End of Day there will be additional steps. 2) Select the trading units. If the units are Decimal then enter in the tick size, i.e., 2 decimal places and the Tick Size is “.05.” 3) Enter in the Description. 4) Select the Division you want the listing to appear in. 6) Select the Format. 8) Click OK. The steps above are for End of Day and Manual contracts. A manual contract would be updated by hand or by importing ASCII files suct as tab deliminated or comma seperated. When you select End of Day in the Create New Contract window you will have a FIBONACCI TRADER Page 7

list of data suppliers that are compatible . In this window you do not need to enter the contract’s symbol, but you do need to enter the file format where the data will be collected. The others inputs are the same as the Real Time Contract. Select the End of Day data format that you are using, which should be on your hard drive. For example, if you are using the MetaStock format the window to the right will appear. (Other formats of data Windows are also shown.) Using the drive selector and the tree directory selector you look for you MASTER file for MetaStock and Computrac format or you look for your QMASTER file for CSI format. If the master file is in this directory the name MASTER will appear in the file list. Click on the MASTER name. The list of all contracts in this master file will appear. Select and click the one that you want. Click the OK button. You will return to the create new contract window and you will see in the Description box the name of the file that you selected. Click the OK b u t t o n , a n d t h e D a i l y / We e k l y / Monthly plan for this contract will be created. Note that you can use the Select button only to create Daily/Weekly/ Monthly Contracts. For intraday plans use the sequence shown in the previous section. For the TC2000 format use the drive selector and the directory tree selector to find the contract that you want in the file list. Click on the file FIBONACCI TRADER Page 8

name of this contract and click the OK button. You will return to the create new contract window and you will see in the Description box the name of the file that you selected. The Auto Create button will appear when you have selected the End of Day s e c t i o n f o r C S I , Me t a St o c k o r CompuTrac formats. This button is to automatically create all contracts that are in the Master file (MetaStock, CompuTrac formats) or Qmaster file (CSI format). When you click this button you will see the window to select the directory of the Master or Qmaster file as on the previous section. Select the directory and then click on the name Master or Qmaster, click the OK button. The Create New Contract window will ask you if you want to create all contracts that are inside the Master or Qmaster file. Choose OK, all Contracts will be created and all plans Daily for these contracts will be created. FIBONACCI TRADER Page 9

CONTRACTS CONTROL Select List from the Contracts menu and the window below opens. Left mouse click on each of the the Divisions listed in the three categories and in the right hand window a list of contracts will appear. Here you can drag and drop contracts between divisions. Right mouse click on a contract and the menu shown here opens. You can create new contracts, Right mouse click edit contracts, delete on the contract for this menu contracts using the previous Contacts window. You can adjust your stock data for splits. You can also import and export ASCII data. Also available is the ability to create New Plans, as well as view the saved results from a system test. To adjust stock data for a price split select Splits/Events from the menu. The window opens, and you select the last day of trading before the split. Type in the split, such as 2 for 1, then enter.5. Click Insert and then exit. If you make an error, then select from FIBONACCI TRADER Page 10

the table the incorrect entry, make the changes and click change. Or if you want to delete the entry click on Delete. An example of a stock split is below. Microsoft had a 2 for 1 split with the split occuring on 2/19/98. The Split/Events window on the previous page shows the changes made to the data, and the next two charts show the results. Another method to enter a split is to right mouse click on the bar before the split. The Edit Window will open and you introduce the split by clicking on the Split button. A dividend is entered in the same fashion. Use the Splits/Events window. Dividends must be entered in decimal format. Again if there is an error then select the data from the table and click on Delete. FIBONACCI TRADER Page 11

To import ASCII data select the contract from the Contracts Control window, right click on the contract, and select Import Data from the menu. Import data from the Select List from the Contracts menu and the window below opens. Follow the instructions for importing the data. 1) Search for the file on your hard drive using the drive selector and select the file. 3) The program should recognize the date format and time format, if not then select the p r o p e r fo r m a t . I f t h e time of the trading does n o t m a t c h yo u r c o n tracts time then you can 2) The program should recognize the type of text file, tab or comma seperated. 4) If the time of the trading does not match your contracts time then you can adjust the time by adding or subtracting minutes. 5) Verify that the columns match the format selected. 6) Click Import, and all plans are updated. 2) Select daily,weekly, monthly or for intraday data the bar format from one minute bars or higher. You can adjust the time between two time zones 1) Select the amount of data, today’s only or all data. 3) Select the dates, by clicking on From and To. A calender will open. 4 ) C l i ck o n E x por t, and wExit when finished. To export ASCII data select the contract from the Contracts Control window, right click on the contract, and select Export Data from the menu. Follow the instructions above. FIBONACCI TRADER Page 12

FP T LANS PLANS Most programs provide you with a chart that is limited to one time frame. With the Fibonacci Trader all charts are called Plans because of the unique ability to view the market’s actions and all indicators in different time frames on the same screen. Each plan has three time periods. The first, that is the time 1) Select the contract frame you are trading is called “Own,” the next higher time frame, which 3) Once created the New Plan will sets the trend and other key appear here, listing the time frame for Own, Next, and High information is called 2) Select Create New Plan “Next.”. The highest time frame is called “High” and usually is referred to for the long term trends. Typical Plans will be Daily/Weekly/Monthly . How might you use this? For example, you could view the daily bars with your favorite moving average, and plot the weekly moving average (calculated from Friday’s close to Friday’s close) plotted on the same chart. You do not have to switch from a daily chart to a weekly chart. The best opportunities are the Fibonacci Trader’s exclusive set of indicators which take full advantage of the powerful multiple time frame trading concept. Click on Plan on the Main menu and the window above opens. Left click on the contract in the left window and you can either Edit the contract or select Create New plan. Select the type of contract, Manual or End of Day. Then select the contract for the new plan. FIBONACCI TRADER Page 13

FP T AGE As you develop your Plans, you may create a group of Plans that you refer to on a regular basis. With the Fibonacci Trader you can create Pages. Set up your collection of Plans, and then click on Pages from the Main Menu. The window in the center of the charts below will appear. In the Description box type in the name that you want to call the collection of pages. Click on Save and this collection will be avaiable to open at a later time. When you want to reopen the page just select the name and click on Open. To delete pages simply select the name of the page and click on delete. This step will delete only the page, the plans will not be deleted. FIBONACCI TRADER Page 14

I F T NDICATORS INDICATORS CONTROL WINDOW This control window can be accessed four different ways. (1)Left click on Indicators on the Main Menu. (2)Left click on the Indicator icon, (3)double left click on the chart to open the menu window, and select Chart, hold and then select Indicators. 4) Right click on the Fibonacci Trader (1&2) Click on Indicator from the in the Plan. main menu or click the icon. This window lists the Indicators currently in use. (4) Right click Add indicators from the bottom list by selecting the indicator the click Add. Edit, Delete or Delete all Indicators currently in use. This window lists all of the indicators currently available INDICATORS CONTROL WINDOW (3) Double click on the chart to call up the menu. Select Chart, and then select Indicators. Here, you can permanently edit or delete indicators that you created Let’s say you decided to add the Moving Average indicator to your list of currently used indicators. Select Moving Average from the Indicator List, and then click Add. The Moving Average will appear in the upper window. Notice that there are three columns next to the name. The first is SubChart, which states which window the moving average will be plotted FIBONACCI TRADER Page 15

in. In this case, SubChart 1 which is the main window will display the moving average. The next column is #Lines. Here, the fact that the Moving Average is a single plot line is indicated. Finally, the Values column lists the criteria for the moving average. You can edit the values by selecting Moving Average in the Active window list and then click Edit or you can click Exit and see the Moving Average plotted on the chart. Look to the top left of the chart and you can see the list of current indicators in use. Left click on one, here the Moving Average is selected, and a small window appears. You can edit the indictor, hide the indicator or delete the indicator. If you select Edit, the Edit Indicator window appears. Left click on the name of the indicator for the option to edit, do not show or delete. EDIT INDICATOR WINDOW Click Live Off and the Real time plan will not show the live calculation of the indicator From the Edit window you can change the parameters based on the table below: Period (O/N/H) Select which time period to calculate and plot: Own, Next or High. Use (O/H/L/C/M/V/T) Calculation based on: Open, High, Low, Close, Medium Point, Volume or Tick volume. Length (Value) Number of bars used in the calculation. OffSet (Value) This is the number of bars to offset forward. Y/N Some indicators have additional criteria which you can toggle on (Y) or off (N). FIBONACCI TRADER Page 16

Besides the parameters, you can set the alarm and adjust the way the indicator is displayed. Set the alarm by number of ticks based on (1) close past line, (2) bar crossing line or (3) change in slope or direction. Trade at (1) bar’s close, (2) next bar’s open or (3) at nearest indicator’s value. Draw as a line, step, 1/2 step histogram or no line. Pick a symbol to plot on the indicator line. Plot the indicator ahead of or behind the bar. Show trades on the chart. Set the colors for the indicator. Many indicators have more than one line. For those, select each line to be modified. Set the line to style solid or dash and adjust the thickness Select the chart to show the indicator. The options shown above give you the opportunity to display your indicators in a form not found in any other program. The key feature is the multiple time frame option based on the period selected by you. On any chart you can show an indicator’s plot based on the own, next or higher time frame. Examples of this feature will be shown in examples to follow. FIBONACCI TRADER Page 17

CREATING NEW INDICATORS Select an indicator that will be the basis for your new indicator. For example, if you wanted to create a moving average with a particular look back period that you use on a regular basis then follow the steps below. 3) Modify the parameters and the display characteristics. 4) Save as Default if you want to replace the standard indicator. 1) Select the base 2) Click the lower indicator, such as Edit button. moving average. 3) Save with your new name to add a new indicator. You can select “Save as New” and create a new indicator or you can “Save as Default” and this will be the set paramters for this indicator. The Delete Button can only be applied to indicators created by you. Indicators that come with the Fibonacci Trader cannot be deleted. Select the indicator that you wish to delete and then click on Delete at the bottom of the window. Click OK to confirm that you wish to delete the indicaotor. FIBONACCI TRADER Page 18

FIBONACCI TRADER INDICATORS When you first look to the Fibonacci Trader to plot indicators in your plans you will find most indicators found in other trading platforms, as well as indicators found no where else. The uniqe and powerful opportunity is the Fibonacci Trader’s ability to use multiple time frame applications. Therefore, you should first look at your favorite indicators that you have worked with in the past, except here, apply your analysis using multiple time frames. For example, if you use moving averages, then use your favorite moving average as the Own indicator, and the weekly moving average in step formation as the Next indicator. The chart shown here has a 10 day Weekly Moving Average, moving average, and Next, in step formation. a 3 week moving average. Then the HiLo Daily Moving Activator was added. Average, Own. You can see that the Weekly moving average steps down with HiLo Activator the trend, as well as the slop of the 10 day moving average is clearly down. The HiLo Activator can be used as your trailing stop. On the next page you will find a list of all of the indicators, both standard and special available in the Fibonacci Trader. Experiment and find the indicators that work the best for you. For more information consider our book, A W.D. Gann Treaure Discovered, as well as the Fibonacci Trader Journal. FIBONACCI TRADER Page 19

STANDARD INDICATORS SPECIAL INDICATORS BOLLINGER BANDS BOLLINGER BANDS DIFFERENTIAL COMMODITY CHANNEL INDEX DIRECTIONAL MOVEMENT INDEX DIRECTIONAL MOVEMENT INDEX EASE OF MOVEMENT EFFICIENCY RATIO ENVELOPE KELTNER CHANNEL LEAST SQUARES SLOPE LEAST SQUARES MOVING AVERAGE CONVERGENCE-DIVERGENCE MACD HISTOGRAM MOMENTUM SIMPLE MOVING AVERAGE EXPONENTIAL MOVING AVERAGE WEIGHTED MOVING AVERAGE ON BALANCE VOLUME PARABOLIC PARABOLIC FILTERS PERRY KAUFMAN ADAPTIVE MA PERRY KAUFMAN ADAPTIVE MA BANDS PIVOT POINT CHANNEL PLAN LINE PRICE CHANNEL PRICE VOLUME RATE OF CHANGE RATIO OSCILLATOR RELATIVE STRENGTH INDEX RELATIVE STRENGTH STOCHASTICS STOCHASTICS RSI TRUE RANGE AVERAGE TRUE STRENGTH INDEX VOLATILITY VOLATILITY STOP VOLUME VOLUME ACCUMULATION OSCILLATOR VOLUME PRICE TREND VOLUME REVERSAL WILLIAMS %R WILLIAMS A/D OSCILLATOR WILLIAMS VARIABLE ACCUMULATION ARKAY MINOR LINE NEXT ARKAY MINOR LINE OWN ARKAY SWING CHART NEXT ARKAY MINOR LINE NEXT ARKAY MINOR LINE OWN ARKAY SWING CHART NEXT ARKAY SWING CHART OWN: BALANCE POINT NEXT BALANCE STEP NEXT BALANCE STEP OWN DANTON STOP DIRECTIO

indicators found in other trading software. Developed by trader Robert Krausz, who was featured in the best selling book New Market Wizards, is author of the soon to be classic A W. D. Gann Treasure Discovered, and is the Editor of the Fibonacci Trader Jour-nal, the Fibonacci Trader program stands alone in its powerful and unique ability to