PipBoxer v2.0

Table of Contents

Introduction .......................................................................................... 3

Attaching an EA to a Chart .................................................................. 5

The Location of EAs on Your Computer ....................................................................... 5
EA Formats ........................................................................................................................... 6
Compiling an EA ................................................................................................................. 6
Attaching the EA ................................................................................................................. 8
Changing the Properties of an Attached EA ................................................................. 10

The PipBoxer Strategy ......................................................................... 11

Recognizing the Box Size ................................................................................................. 12
Filtering Out the False Breakouts .................................................................................... 14
Built-in Visual Aids ............................................................................................................ 15
The PipBoxer Indicator .................................................................................................... 16
Taking Risk Management into Account ......................................................................... 18
Entering and Exiting Trades ............................................................................................ 22
Adopting Money Management Techniques ................................................................... 26
A Trading Scenario ............................................................................................................ 28

The Back-test Results .......................................................................... 31

How to Use PipBoxer v2.0 .................................................................. 32

Minimum System Requirements ...................................................................................... 32
External Variables Settings ............................................................................................... 33

PipBoxer v2.0 vs. PipBoxer v1.0 ......................................................... 37

Beware of Risks .................................................................................. 39

The Internet Connection .................................................................................................. 39
The Server Connection ..................................................................................................... 39
The Broker .......................................................................................................................... 39
The Trader ........................................................................................................................... 40
The EAs ............................................................................................................................... 40

Warning and Error Messages .............................................................. 41

The Commercial Version Messages ................................................................................ 41

Terms, Conditions, and Disclaimer ................................................... 44

Terms and Conditions: ...................................................................................................... 44
Disclaimer: ........................................................................................................................... 44

10.

Index ................................................................................................... 46

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 3

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

implement the methods introduced in this manual and/or use PipBoxer at your own discretion. The author/owner of
this manual and/or PipBoxer shall not be held responsible for your losses of any kind included but not limited to
the program’s malfunction.

Introduction

orex is the largest and the most liquid market in the world. With an average
daily trade volume of about $1.9 trillion no other market can beat it. Forex
market which is an Over-The-Counter (OTC) market is open 24 hours a day
for 5 days a week.

Entering the forex market is very easy. You can open an account with less than $300
and enjoy the high leverage of 100:1 or even more. For many people this means
making big money in a short period of time. The temptation is high but unfortunately
the reality is different. The majority of inexperienced traders lose in this market. Many
of them even blow out their accounts completely in a very short period of time. It is
not easy to constantly make money in forex.

To be a successful trader you need to be a disciplined, knowledgeable person. You
need to learn several skills including fundamental and technical analysis methods, and
risk and money management techniques. The psychology of trade also plays a key role
in your success as a trader.

Traders can be categorized as

mechanical

and

discretional

. A mechanical trader sets

up some strict rules for his/her trading and sticks with them all the time. A discretional
trader considers his/her power of judgment at the time of trading. I am not a fan of
discretional trading. In a mechanical approach you can estimate the likelihood of your
success and based on that likelihood you can make correct decisions. A discretional
trader has no clear way to evaluate his/her likelihood of success. A discretional trader
could be more successful than a mechanical trader in short term trading but in the long
run it is the mechanical trader who wins the most. There might be some exceptions
but in general mechanical trading is the right way to go.

The ultimate mechanical trader is the computer. Even a highly-disciplined manual
mechanical trader is not 100% free from discretion. If you leave your trades to your
computer it never breeches the rules you have set for it.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 4

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

A computer is a machine and it cannot setup trading rules. It is you “the trader” who
needs to define these rules for the computer to make your computerized trading
experience a successful one. I believe that PipBoxer is one of those successful set of
rules. I will explain this in more detail throughout this guideline.

There are several tools available to trade forex. Probably one of the most successful
ones is MetaTrader. This software application enables the trader to analyze and enter
the market at the same time. Unlike traditional trading platforms you do not need a
chart provider to analyze the market. MetaTrader provides you with the chart and
almost every necessary tool to analyze the chart.

Another nice feature of MetaTrader is the ability to install and run customized tools.
These tools are in the form of indicators, scripts, and Expert Advisors. Since PipBoxer
is an Expert Advisor (EA) I will explain the use of EAs and how to attach them to a
chart in the next section.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 5

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

Attaching an EA to a Chart

ne  of  the  reasons  that  MetaTrader  4  (MT4)  is  a  highly  regarded  trading
platform  is its capability to automatically run trading orders. The tool that
traders  use  to  conduct  such  automated  trades  is  called  an  EA  (Expert
Advisor).

An EA is a software program that a trader can use within the MT4 terminal. A trader
may use an EA for different reasons, including but not limited to analyzing the market
and creating trading signals, conducting fully automated trades, defining complex
criteria for running a trade, and so on.

In order to be able to use an EA you must attach it to a chart. If you attach an EA to a
chart it uses the chart tick movements to analyze the market and do its job. For
example if you attach an EA to the USDJPY chart the EA will run every time the price
of USDJPY moves. Let’s see how to attach, compile, and use EAs.

The Location of EAs on Your Computer
You need to place your EAs in the “experts” folder. If for example you have installed
MetaTrader in a folder called “My Trading Station” under drive C: the address to this
folder could be “C:\Program Files\My Trading Station\experts\”.

There are some folders under the “experts” folder that some EAs use. For example
PipBoxer v2.0.6 uses the following sub-folders

..\experts\indicators

save “PipBoxer_Indicator.ex4” in this folder

..\experts\libraries

save “PB_RiskManager.ex4”,

“PB_MoneyManagement.ex4”, and “PB_SM.ex4” in this
folder

The PipBoxer installation file automatically places all these files in their proper folders. This guide is for

maintenance and troubleshooting purposes only.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 6

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

..\experts\include

you need to save “PB_RiskManager.mqh”,

“PB_SM.mqh”, and “PB_MoneyManagement.mqh” in
this folder

..\experts\files

you need to save “activation.act” in this folder

EA Formats
EAs are available in two different formats: the raw format (or source code) and the
compiled format (or executable version). The file extension for EA source codes is
*.mq4 (e.g. PipBoxer.mq4) and the file extension of EA compiled programs is *.ex4
(e.g. PipBoxer.ex4). The default location for both formats is the “experts” folder.

You cannot use the source code to run the EA. You must compile the source code
first to make it an executable file. On the other hand the compiled (*.ex4) format is
ready to use. You don’t need the source code to run the compiled format. So
eventually all you need is the compiled file.

You always receive PipBoxer files in compiled format so you do not need to
compile EAs.

The following section is just for your information. You do not need to compile
PipBoxer EAs.

Compiling an EA
If you place an error-free source code in the “experts” folder and then start MT4 it
automatically compiles the EA and creates the *.ex4 file. You may also compile the
EA yourself as follows.

When you install your MT4 trading terminal you also install an application called
MetaEditor. The installation is done automatically. You can use MetaEditor to develop
EAs. You also use MetaEditor to compile EAs. So if you receive the source code of an
EA (i.e. the *.mq4 file) use the following steps to compile it. If you already have the
compiled file in hand skip this procedure.

1. From the MT4 terminal run MetaEditor. You can find the MetaEditor icon on

the Standard toolbar of the MT4 terminal (Figure 1).

“PB_RiskManager.mqh” is not included in the demo package

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 7

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

Figure 1

2. In the MetaEditor window open the EA source code. You can either use the

File>Open to locate and open the file or double-click the file name in the
“Navigator” window. This window is located on the right side of the
MetaEditor window by default.

3. On the MetaEditor toolbar click the “Compile” button (Figure 2).

Figure 2

4. If the code contains no errors the application creates the compiled (*.ex4) file

and you are ready to use the EA. The error messages appear on a window
called “Toolbox” embedded in the MetaEditor environment. If you receive a
message similar to the one shown in Figure 3 you are good to go. If not, you
either need to fix the error yourself or contact someone who is an MQL
developer.

Figure 3

5. Close MetaEditor.

Now you are ready to use the EA.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 8

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

Attaching the EA
To attach an EA to a chart use the following steps.

1. In the MT4 terminal open the desired chart.

2. Select the proper time frame by clicking one of the icons on Periodicity toolbar

or Chart > Periodicity menu.

The only timeframe that you can use for PipBoxer is M15 (i.e. 15 minute
charts).

3. Make sure that the “Navigator” window is open. The default location of this

window  is  below  the  “Market  Watch”  window  on  the  left  side  of  the  MT4
terminal  (Figure  4).  If  the  “Navigator”  window  is  not  open  either  press
Ctrl+N or from the View menu select Navigation.

Figure 4

4. In the “Navigator” window click the “+”sign next to “Expert Advisors”. The

list of current EAs appear in the window.

5. From the list either drag-and-drop the EA to the chart or double-click it. A

dialog box appears.

6. On the “Common” tab select the “Allow live trading” option (Figure 5). If

you do not select this option the EA does not enter trades automatically.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 9

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

Figure 5

7. On the same dialog box select the “Inputs” tab. The tab is located at the top of

the dialog box. In this tab you can make any changes to external variables
(Figure 6).

Figure 6

When using PipBoxer the most important variable that you need to change is
“_server_time”. This variable refers to your broker’s winter server time in
relation to GMT. For example if your broker’s server time in winter is GMT+2
assign 2 to this variable. Contact your broker for more information.

7. Click OK. A smiley (happy face) appears on the upper right corner of the chart
indicating that the EA is running (Figure 7).

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 10

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

Figure 7

You may see an “x” sign instead of the happy face. This means that all of the
EAs are deactivated. To activate EAs from the Standard toolbar press the
“Expert Advisors” icon (Figure 8).

Figure 8

If instead of the happy face you see a sad face it means that this EA is not allowed to
trade live. To enable live trading:

1. Press F7 to see the EA properties dialog box.

2. Select the “Common” tab.

3. Select “Allow live trading” (Figure 5).

Changing the Properties of an Attached EA
To change the properties of an EA that is attached to a chart use the following steps:

1. In the MT4 terminal open the chart.

2. Press F7 to see the EA properties dialog box. Alternatively, you may right click

on the smiley located on the upper right side corner of the chart and select
Properties from the pup-up menu.

3. To change the values assigned to external variables, select the “Inputs” tab and

make the desired changes or click Reset to restore the original settings of the
EA.

4. To change other options select the “Common” tab and select or deselect

desired options.

5. Click OK.

Some brokers disable EAs by default. You need to contact your broker and
ask them to activate EAs for your account. They usually ask you to submit a
form.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 11

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

The PipBoxer Strategy

ipBoxer is a breakout system with a twist. The strategy consists of five major
steps to enter the trades correctly, manage them in the best way possible and
exit them safely. Here are those strategies:

1. Recognizing the box size.

2. Filtering out the false breakouts.

3. Taking risk management into account.

4. Entering and exiting trades.

5. Adopting money management techniques.

Figure 9 helps you to have a better understanding of how this system works.

Figure 9

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 12

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

Recognizing the Box Size
PipBoxer is a time sensitive system. It starts analyzing the market at a specific time of
the day. The analysis time depends on the currency pair. At the time of analysis the
system recognizes the highest high and the lowest low for a specified number of bars.
The number of bars varies for different currency pairs. The following table shows the
analysis time for the pairs that PipBoxer trades. We at PipBoxer lab may change these
times to get the best out of the market without prior notice. You usually need to wait
a few hours or even a few days to see the first trade takes place.

Currency Pair

Analysis Time

EST

NZDUSD

1:00 am – 1:15 am

AUDUSD

5:00 am – 5:15 am

GBPUSD

6:00 am – 6:15 am

USDCHF

6:00 am – 6:15 am

EURGBP

7:00 am – 7:15 am

EURUSD

8:00 am – 8:15 am

USDCAD

8:00 am – 8:15 am

USDJPY

10:00 am – 10:15 am

EURJPY

2:00 pm – 2:15 pm

GBPJPY

2:00 pm – 2:15 pm

The difference between the highest high and the lowest low is called “box height”.
This variable is very important. PipBoxer uses the “box height” to calculate TP (take
profit) and SL (stop loss) values.

The “box height” also affects the calculation of trading stripes. Trading stripes (green
stripes in figure 9) are price ranges that PipBoxer initiates a trade within them. There
are four scenarios possible.

•

Normal Long

: A green arrow appears on top of the analysis – peach – box.

The price falls within the “normal long stripe” and the EA enters a long trade.
The normal long stripe appears in dark green on your trading platform.

•

Normal Short

: A red arrow appears below the analysis – peach – box. The

price falls within the “normal short stripe” and the EA enters a short trade.
The normal short stripe appears in maroon (dark red) color on your trading
platform.

The author of PipBoxer may change the analysis time without prior notice. To run PipBoxer properly you

need to be connected to the internet and your broker’s server all the time when the market is open. EST is the
US and Canada Eastern time (which is -5 GMT in winter). GMT is the Greenwich Mean Time.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 13

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

•

Counter Long

: A green arrow appears on top of the analysis – peach – box.

The price falls within the “counter long stripe” and the EA enters a long trade.
The counter long stripe appears in light green color on your trading platform.

•

Counter Short

: A red arrow appears below the analysis – peach – box. The

price falls within the “counter short stripe” and the EA enters a short trade.
The counter short stripe appears in light red (tomato) color on your trading
platform.

The last two scenarios occur only if the external variable “counter_trade” is “true”. For
most pairs I have disabled this variable based on back-test results.

In a typical day you might see graphics on your chart as follows:

• The peach box is present but there is no arrow on it: No trades would

take place.

• A green arrow appears on the peach box: The system will enter a long

trade if the Ask price falls within the trading stripe(s).

• A red arrow appears below the peach box: The system will enter a short

trade if the Bid price falls within the trading stripe(s).

• Both green and red arrows appear on the peach box: The system will

enter a long or short trade depending on the price action. If price falls in the
light green stripe the system enters a long trade and if the price falls in the
light red stripe the system enters a short trade.

The last situation only happens when counter trading is enabled. For most of PipBoxer
auto-traders this option is not active.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 14

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

Filtering Out the False Breakouts
PipBoxer uses a set of CCI based calculations to filter out false breakouts. It calculates
the weighted average of CCI for a few bars right before and including the analysis bar.
In other words the calculations take place before entering the market. This helps the
system  to  make  its  decisions  almost  regardless  of  the  reaction  of  the  market  to  the
news.  I  found  out  that  this  combination  works  the  best.  Breakout  depends  on  the
news but the CCI calculation behaves almost independent of the market action. One
other benefit is that you can have a trading signal in place long before entering a trade.
The “PipBoxer_Signal” EA is an expert advisor that generates trading signals with the
help  of  PipBoxer  strategy  for  those  who  do  not  use  MetaTrader  or  prefer  to  trade
manually. Log on to

www.pipboxer.com

for more information.

The other usage of CCI calculations is to designate between “normal” and “counter”
trades.  As  I  mentioned  before  if  the  price  approaches  the  upper  stripe  but  the  CCI
calculations  fail  to  exceed  a  certain  level  the  system  does  not  enter  a  long  trade.
However, if counter trade is enabled the system enters a short trade. A similar situation
may occur if the price approaches the lower stripe.

The red and green arrows appear on the chart based on CCI calculations.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 15

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

Built-in Visual Aids
As I mentioned in preceding paragraphs the latest release of PipBoxer v2 draws
rectangles, arrows, and trading stripes on the chart to give you a better feeling of how
the system works. The rectangles represent the analysis boxes, the arrows show the
potential direction of the trade, and the stripes show where a trade might take place.
These visual aids help you to have a better understanding of trading opportunities in
the near future.

Visual Aids are in Beta mode. They might not appear on charts properly. If you
encounter an unusual situation please contact us at

info@pipboxer.com

Please not that visual aids has no direct impact in the calculations done by the
system.

Managing the Visibility of Visual Aids

You can control the visibility of visual aids with the help of the following external
variables:

• _draw_pb_box: Controls the visibility of the peach box.

• _draw_arrows: Controls the visibility of the arrows.

• _draw_stripes: Controls the visibility of the stripes.

PipBoxer assigns special names to its graphical objects so you can later easily recognize
them. Here are the names used by PipBoxer. (date) refers to the date that object is
drawn for example a rectangle that is drawn on October 16, 2006 is named
PB_Box_2007.10.16:

• PB_Box_(date): The peach box

• PB_Arrow_A_(date): The long trades (green) arrow

• PB_Arrow_B_(date): The short trades (red) arrow

• PB_Stripe_A_(date): The normal long stripe (dark green)

• PB_Stripe_B_(date): The counter long stripe (light green)

• PB_Stripe_C_(date): The normal short stripe (maroon)

• PB_Stripe_D_(date): The counter short stripe (tomato)

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 16

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

The PipBoxer Indicator
The “PipBoxer_Indicator” is an indicator that shows the CCI related calculations on a
window below your charts. This indicator comes with the PipBoxer v2.0 package.

PipBoxer does not use this indicator to enter, exit, or manage trades. The
indicator is just a visual aid for the trader. If the indicator line crosses above the
upper level at the analysis time the odds that the system enters a long trade is
high. If the indicator line crosses below the lower line the odds that the system
enters a short trade is high. There are other factors like the trading stripes in
place that may prevent the system from trading.

How to Attach the “PipBoxer_Indicator” to a Chart

To be able to use the indicator use the following steps.

1. Place the indicator’s compiled file (i.e. “PipBoxer_Indicator.ex4”) in

“…\experts\indicators\” folder. For example if you have installed the
MetaTrader on drive C: the folder’s path could be
“C:\Program Files\MetaTrader4\experts\indicators\”.

2. Open the MetaTrader terminal (i.e. the trading platform). In the Navigator

window click the + sign next to “Custom Indicators”.

3. From the Custom Indicators list double click “PipBoxer_Indicator”.

4. Select the “Input” tab of the dialog box (Figure 10):

Figure 10

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 17

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

5. Double click the number under the “Value” column and change the

“PB_Period” number according to the following table (the second column).

Currency Pair

PipBoxer_Indicator Settings

Period

Levels

GBPUSD

EURUSD

USDCAD

USDCHF

AUDUSD

104

USDJPY

EURJPY

EURGBP

GBPJPY

NZDUSD

6. Click the “Levels” tab (Figure 11) and change the levels according the

preceding table. You may also change the color and line style of the levels.

Figure 11

7. Click OK. The indicator appears in a separate window below the chart.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 18

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

Taking Risk Management into Account
According  to  Investopedia.com  Risk  Management  is  “the  process  of  identification,
analysis  and  either  acceptance  or  mitigation  of  uncertainty  in  investment  decision-
making.  Essentially,  risk  management  occurs  anytime  an  investor  or  fund  manager
analyzes and attempts to quantify the potential for losses in an investment and then
takes  the  appropriate  action  (or  inaction)  given  their  investment  objectives  and  risk
tolerance.”

In other words a complete trading system is one that gives you the opportunity to
mitigate your risk while you have the chance to gain profit. PipBoxer is such a system.
It offers several features to increase your chance to make more money and lose less.

Value At Risk (VAR)

Every final version of PipBoxer v2.0 gives you the opportunity to trade the correct lot
size  according  to  “Value-At-Risk”.    VAR  (or  value-at-risk)  is  simply  the  maximum
percentage of your account balance that you are willing to lose in a single trade.  It is
very  important  to  take  VAR  into  account.  The  following  example  shows  how  the
application of VAR can save your investments and give you the opportunity to stay
active in the market.

Once I designed a trading system that showed profit in recent years. I decided to back-
test it with an initial deposit of $10,000.00. At first I used a fixed lot size. For each trade
the system traded 1 standard lot. Unfortunately in less than 14 months the system lost
over $8,700.00 and stopped out because it couldn’t initiate a new trade. Figure 12
shows how the system blew out the account after 127 trades.

Figure 12

I repeated the same experiment but this time I set the VAR to 3%. This means that I
accepted to lose up to 3% of my account balance on each trade. This time the system
survived the drawdown and made a profit of over $8,000.00 in four years (Figure 13).
The green columns at the bottom of the figure represent the number of lots the system
trades. As you see in the figure the system changes the number of lots to trade
according to the risk involved in each trade.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 19

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

Figure 13

Even when I increased the VAR to the unreasonable value of 20% (i.e. losing up to
20% of account balance in a single trade) it managed to make profit (a total of over
$16,500.00). It faced a drawdown of over 80% but the account never failed (Figure 14).

Figure 14

The  bottom  line  is  that  the  difference  between  allocating  fixed  number  of  lots  in  a
trade  to  using  VAR  is  sometimes  equivalent  to  staying  in  the  market  and  making
money or losing your investment.

Never a Margin Call

PipBoxer v2.0 follows the “Never a Margin Call” policy. It calculates the risk of losing
money per trade and also the amount of money you need to invest to enter the trade.
It then compares the total money that you might lose or engage with the trade to the
minimum  balance  that  you  need  to  avoid  the  margin  call.  If  there  is  a  chance  of
receiving a margin call from your broker it doesn’t enter the trade, so you never receive
a  margin  call.  The  system  receives  your  broker’s  margin  call  policy  from  the
MetaTrader terminal and then makes calculations accordingly.

The margin call calculations are done only if you use the risk management
tools. In other words instead of trading a fixed lot size you need to assign a
positive value to the “Value_At_Risk” external variable.

We found out that some brokers do not pass the margin call info to the system.
To avoid any problems with your live trades a new system variable
“bypass_margin_call” is in place and set to “true” by default. If this variable is
“true” the system won’t follow the “Never a Margin Call” policy. You may
change this variable to “false” to avoid any margin calls.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 20

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

Currency Pair Diversification

The other risk management tool is “currency pair diversification”. For example the
back-test of GBPUSD and USDCHF with PB2 from Dec 31, 2004 to Dec 31, 2006
with an initial deposit of $10,000 and a VAR set to 15% showed the following results.

Currency Pair

Net Profit

Profit Factor

Max Drawdown

GBPUSD

$2,478,904.00

1.89

37.89%

USDCHF

$361,076.04

1.60

35.30%

While the results look very tempting there are two problems. The first one is that you
cannot guarantee such good results in the future. The second one is that even in back-
testing you see that at some point of time you had lost over 35% of your account
balance. In general using such a huge VAR is not a very good idea. A good approach
to mitigate the risk is to distribute VAR among the pairs. For example you may risk 7%
on GBPUSD and 8% on USDCHF. With this approach the drawdown for each pair
reduces to 19.32% and 19.00% respectively. Note that since the majority of trades for
these pairs are winners and the average gain of winning trades is more than the average
loss of losing trades you may gain the same amount of money while your drawdown is
minimized

My suggestion is to distribute VAR between 3 or more pairs and let them trade at the
same time. The final release of the PipBoxer v2.0 package consists of several EAs that
enable you to trade over 10 pairs. You may choose the ones that you feel more
comfortable with, or your broker offers tighter spreads on.

Other Risk Management Tools

There are five variables in place that can help you mitigate your risk.

•

account_risk_control

: If you set this variable to true – the default value – the

EA does not allow you to assign a value greater than 10 to VAR. If you by
mistake enter a large value for VAR the system reduces it to 10%.

•

no_risk_balance

: This value is the part of your account balance that you don’t

want to be risked on a trade. For example if your account balance is $25,000.00
and you set $10,000.00 to this variable, the system calculates the lot size based
on the remainder of the balance that is $15,000.00 (or 25,000-10,000). So if
your VAR is 10% the worst case scenario would be to lose $1,500.00 per trade
not $2,500.00.

•

enter_high_risk

: Suppose your broker doesn’t allow you to trade less than 0.1

of a standard lot. If the calculated lot size for a trade is less than 0.1 lots and
“enter_high_risk” is “true” the system will trade the minimum lot size (i.e. 0.1
lots). However, if the trade hits the SL it may lose more than the value you
have set to VAR. To eliminate the risk of losing more than what you can
afford assign “false” to “enter_high_risk”. When “enter_high_risk” is “false”
the system will only enter a trade if the calculated lot size is equal or more than

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 21

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

the minimum lot size. The default value is “true” not to miss any trades.
This feature is especially very important if your account balance is low.

•

_max_open_trades

: Defines the maximum number of open trades. The

system enters a new trade only if the number of open trades – no matter how
they are initiated – is less than this number. The variable is set to 10 by default.
So if there are 10 or more trades open – whether manual or automatic –
PipBoxer v2.0 does not enter a new trade.

•

_trades_allowed

: If you assign “false” to this variable the EA does not enter

new trades. However, it stays alert, analyzes the market, and manages open
trades. This variable helps you to avoid entering trades when you are uncertain
about the market condition in the near future (e.g. because of news releases).
With the help of this variable you do not need to disable the EA. This helps to
keep money management tools active to manage existing open trades.

•

_above_max_lots_ok

: This variable is set to “true” by default. When this

variable is true if the calculated lot number is more than maximum number of
lots allowed by your broker the system trades the maximum number of lots. If
the variable is “false” and calculated number of lots exceeds the maximum lot
number the system does not initiate the trade.

•

bypass_margin_call

: This variable controls the margin call feature. It is “false”

by default. If you set it to “true” then it won’t a trade if the odds of getting
margin call is high. Some brokers do not support this feature.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 22

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

Entering and Exiting Trades
A  complete  auto-trader  is  the  one  that  can  enter  and  exit  trades  automatically.
PipBoxer  v2.0  is  no  exception.  It  automatically enters  a  trade  when  it  recognizes  an
opportunity  and  exits  a  trade  by  setting  proper  Take  Profit  and  Stop  Loss  levels.
PipBoxer v2.0 uses the following external variables to keep entering and exiting trades
under control.

•

counter_trade

: If set to false the system will not enter counter trades. A

counter trade is the one that is in the opposite direction of the breakout. For
example if the system breaks out from the top of the box the system will enter
a short trade. For many of the pairs this variable is set to false. User does not
have access to this variable.

•

normal_trade

: This variable enables the system to enter trades in the direction

of the breakout. By default “normal_trade” is always “true”. User does not
have access to this variable.

•

_close_at_the_end_of_day

: If you pay high interest (or rollover swap) on your

open trades you may enable this variable to close your trades automatically at
4:00 PM EST. However, I do not recommend this action as it shows severe
losses in back-testing. The nature of PipBoxer trades is that they stay open a
few days. Some trades get closed in a few minutes but most of the trades stay
open between 1 to 3 days or even more.

•

trades_slippage

: Slippage shows the systems flexibility at the time of entering

a new trade. For example if the current Ask price is 1.9000 and the
“trades_slippage” is 2 when the system request to initiate a trade the broker
has the flexibility to open the trade up to 2 pips away from the requested price.
The default value is set to 2. If your broker re-quotes you a lot you can increase
this value. However, you may increase your chance of losing a trade.

•

_short_trades

: It “false” the system won’t enter short trades. The default value

is “true”.

•

_long_trades

: It “false” the system won’t enter long trades. The default value is

“true”.

•

_max_takeprofit

: Defines the maximum take profit in pips targeted by each

trade. For example if you set this variable to 300 the maximum profit that you
can make per trade does not exceed 300 pips. We have optimized this value
for every currency pair but gave you the capability to override our calculated
value.

•

_max_stoploss

: Defines the maximum stop loss in pips targeted by each trade.

For example if you set this variable to 300 the maximum loss that may occur

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 23

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

per trade does not exceed 300 pips. This feature is especially useful for those
who use fixed lots to trade. It helps them to control their maximum loss.

•

_quick_be

: Moves the stop loss 1 pip above the open price when the market

teaches this value. For example if you set this value to 50, if the market moves
50 pips in your favour the stop loss moves 1 pip above your open price and
your trade is locked in profit. We have optimized this value for each EA but
you may override it at your own discretion.

The _sever_time Variable

This variable is probably the most important trading variable. “_server_time” refers to
the server time of your broker with respect to GMT in winter. The exact value of
_server_time in summer depends on your broker’s policy. If your broker follows the
daylight time shift then you do not need to change _server_time in summer. If the
broker server time remains the same in summer then in summer you need to subtract 1
from this variable. The following table shows some examples of _server_time variable
for some of the brokers

Broker

Summer Winter

Interbank FX

-1

MIG FX

FXDD

NorthFinance

Alpari

For example MIG FX server time in winter is GMT+1. This broker changes the server
time to GMT+2 in summer. Therefore the _server_time variable remains “1”
throughout the whole year.

As another example InterBank FX server time is currently GMT throughout the year
so you need to assign “0” to _server_time in fall and winter and “-1” in spring and
summer. Please remember that broker’s policy may change and you need to make sure
that your _server_time variable is set correctly.

These are not our recommended brokers. They are simply some of the brokers that our customers use the

most. They may change their policy and these variables become invalid. We suggest that you double check
with them about these values.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 24

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

The short-term effect of this variable is usually not significant so you don’t need
to be worried about the exact time of changing this variable. If your setting is
wrong for a couple of weeks you usually won’t encounter a serious problem.

The following procedure shows you how to make sure the _server_time variable is set
properly.

1. Contact your broker and ask them about their server time relative to GMT.

They might provide you with two numbers for summer and winter. Write
down their current server time for your future reference and assign their winter
time to the _server_time variable. For example if their time is GMT+1 in
winter and GMT+2 in summer the initial value that you assign to _server_time
would be 1. If it is summer right now you also need to write down the current
time which is GMT+2 for future calculations. .
If they mention one server time both for winter and summer then if it is fall or
winter use this time and if it is spring or summer subtract 1 from this time and
use the new value. For example if they mention GMT+2 both in summer and
winter. If it is summer right now use 1 (i.e. 2-1) and if it is winter right now use
2.

2. Run PipBoxer on one of your charts on a demo account. For example run it

for GBPJPY. Get back to the chart when at least one peach box is drawn. It
might take up to 1 business day to see the first peach box appear.

3. Draw a vertical line on the right border of the peach box. Write down the time

that is shown under the vertical bar. For example if the time shown on this line
is 20:00 write it down.

4. Subtract the current time of your broker from this value. For example if your

broker’s current time is GMT+2 the calculated value would be 20:00-2 which
is 18:00. This value refers to the calculation time in GMT.

5. Google “New York Time”. The first option shows the current EST (New

York) time. Write it down on a piece of paper. Turn this value to a 24h system.
For example if the current time is 6:40 PM you need to write down 18:40.

6. Visit

http://wwp.greenwichmeantime.com/

to see the current Greenwich

Time. Write this value down in 24h. For example this value could be 22:40.

7. Subtract the NY Time (EST) from the Greenwich Time (GMT) to calculate

the current difference between these values. In the preceding example the
difference is 22 :40-18:40 which is 4 hours.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 25

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

8. Subtract the value calculated in step 7 from the value calculated in step 4. In

this example it would be 18:00-4 which equals to 14:00. This value is your
chart’s calculation time in EST.

9. Refer to the table shown on

page 12

of this manual for the correct calculation

times. As you see the correct value for GBPJPY is 2:00 PM or rather 14:00. If
the value that you calculated in step 8 matches this value your _server_time
settings is correct, if not you need to correct it. For example if the value in step
8 is 15:00 you need to subtract 1 from your current _server_time value. If it is
13:00 you need to add 1 to the _server_time value.

If you have problems with assigning the correct value to _server_time please contact
us via

info@pipboxer.com

. We will help you to assign the proper value to this variable.

The value of _server_time is independent of your physical location. It only
depends on your broker’s policy.

The Use of Trading Stripes

One of the features that I like a lot about PipBoxer v2.0 is the definition of trading
stripes. With this concept in hand the system does not enter a trade if the price does
not fall into the stripe. This means that you are secured against sudden uncontrolled
breakouts. The value of this approach is demonstrated when you are trading live. For
example if, because of a news release the price suddenly jumps to 30 pips above the
box a trade does not take place. This is a fantastic shield against an unpredictable forex
market.

For long (buy) trades the Ask price needs to fall within the stripe and for short
(sell) trades the Bid price needs to fall within the stripe.

Multiple Trades on the Same Pair

If PipBoxer v2.0 recognizes a chance to enter the market even if another trade from
the same pair is open it enters the trade. Sometimes two trades in the opposite
direction are open and build a hedge until one of the trades gets closed. When you see
two or more trades open from the same pair do not panic. PipBoxer knows its job and
manages all those trades individually and at the same time. Sometimes both trades that
are open in opposite direction make money.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 26

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

Adopting Money Management Techniques
Money management (MM) techniques are those that you use to get the best profit
from each trade. With the help of these techniques you can maintain the win rate (i.e.
the ratio of winning trades to losing trades) while you increase your pay rate (i.e. the
average gain per winning trade to the average loss per losing trade). The following
variables define the MM techniques. Note that some people consider the calculation of
the number of lots an MM technique. I prefer to call it a risk management technique.

I have optimized the system and assigned proper values to these variables.
You do not need to change the default values However, you have access to
these variables just in case you wish to customize the system based on your
priorities.

•

_move_to_break_even

: With this variable set to “true” if the price moves in

your favor (e.g. 30% of profit target) the system moves the Stop Loss to the
purchase price of the currency or a value near to it. This reduces the chances
to lose a trade or at least mitigates the loss size. For example if PipBoxer v2.0
buys USDCHF at 1.2400 and the TP (Take Profit) is set to 1.2500 (i.e. 100
pips) while SL (Stop Loss) is set to 1.2320 (i.e. -70 pips) you might lose up to
70 pips if the market moves in the opposite direction of the trade. That’s why
if the price moves to 1.2430 PipBoxer moves the SL to 1.2387 (i.e. -13 pips).
Now if the market moves against you the maximum loss will be 13 pips rather
than 70 pips. The exact deviation from the BE (Break-Even) point depends on
the back-test results and it might be positive or negative.

•

_trailing_stop_available

: If the price moves in your trade’s favor to certain

level (e.g. 60% of the profit target) the stop loss will jump to BE plus 1 pip
and  then  every  pip  the  price  moves  toward  TP  the  SL  also  moves  one  pip
above BE. If the price moves in the opposite direction, the SL does not move
and  remains where  it was.  Therefore,  if  the  direction  of  the  market  reverses
you still make some money. For example in the previous example if the price
moves to 1.2461 the SL moves to BE + 1 pip (i.e. 1.2401). If the price moves
to 1.2467 the SL moves to BE + 7 pips (i.e. 1.2407). Now if the price moves in
the opposite direction the SL stays where it is and if the price drops over 60
pips  it  hits  the  SL  but  instead  of  losing  money  you  gain  7  pips.  I  have
optimized the behavior of TS (trailing stop) for every pair to make sure you
make the most out of it.

•

_move_to_mid_TP

: Suppose the price advances 90% in your favor and

suddenly reverses. In this case the trailing stop will save a few pips for you but
that probably is not even enough to pay for the rollover swap interest. To
address this problem in such cases the system moves the SL to somewhere
around 50% of the TP. In the previous example if the price moves to 1.2485
the SL moves to 1.2455 so if the price drops you make 55 pips. If the “mid
TP” was not in place you would have only made 25 pips with the help of TS. I

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 27

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

have optimized the “mid TP” system to make as much money as possible in a
market that keeps changing directions.

•

_compromise_TP

: If the price moves in the opposite direction and there is a

big  chance  that  you’ll  lose  this  trade  the  PipBoxer  v2.0  moves  the  TP  to
somewhere near BE so if the price moves in your favor the system closes the
trade with minimal loss or even a little bit of profit. This feature is one of my
favorites because many of the trades that were supposed to end up in loss will
make  money  just  as  a  result  of  a  short  move  of  price  in  your  favor.  This
feature  is  similar  to  “_move_to_break_even”  but  when  the  price  moves
against your trades.

•

_neg_TS_available

: This variable enables a trailing profit in the opposite

direction. It means that when the price moves in a negative direction it moves
the TP to BE first and then follows the price in the negative direction. This
feature in some cases minimizes the loss. However, throughout the back-
testing I found out that I need to disable it for many pairs.

•

_move_to_mid_SL

: With the help of this variable if the price approaches the

original stop loss the system moves the TP midway to SL. This means that if
by chance the price slightly moves in your favor the trade may get closed with
half the loss instead of full loss. I have disabled this feature for most pairs but
it can be used as a potential tool to reduce the loss.

With all these MM tools in place you are guarded against negative market movements
to get the best results possible.

With a combination of market analysis techniques, entry and exit tools, risk
management techniques, and money management tools PipBoxer v2.0 is beyond a
simple EA. It is a powerful trading package.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 28

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

A Trading Scenario
To have a better understanding of how PipBoxer works I take you step by step
through a trade. The currency being traded is EURGBP (Euro vs. British Pound).

Analysis

PipBoxer v2.0 analyzes the EURGBP chart between 5:00 am to 5:15 am EST (i.e.
10:00 am to 10:15 am GMT). Figure 15 shows a screenshot of the analysis result. The
chart _server_time is GMT.

The system considers all the bars from 12:30 am GMT (7:30 pm EST) or the left
vertical line to 10:00 am GMT (5:00 am EST) or the right vertical line to calculate the
highest high and the lowest low. The analysis leads to extracting the trading strips.
Here only the lower stripe is shown which starts from 0.6862 and extends to 0.6865
(i.e. 3 pips). The system will only trade if the price falls within the trading stripes.

Figure 15

The system also uses the calculations made by “PipBoxer_Indicator”. Note that you
do not need to install this indicator. The indicator is a built in feature for PipBoxer. I
just included the indicator as a presentation tool. As you can see the indicator line is
below the lower level at 10:00 am GMT. This means that the system will only enter a
short trade if the price falls between 0.6862 and 0.6865.

Entering a Trade

Around 10:16 am GMT (i.e. about 1 minute after the analysis is done) the price falls
within the stripe and the system enters a short trade. The open price is 0.6862, the stop

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 29

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

loss is 0.6940 (i.e. -78 pips), and the take profit is 0.6830 (i.e. +32 pips). Figure 16
shows an image of the chart at the time the system entered the trade.

Figure 16

Managing the Trade

As soon as the trade begins the MM tools take charge and manage the SL and TP. For
a couple of hours the price moves slightly against the direction of the trade and
nothing happens but at 2:06 pm GMT nearly 4 hours after the initiation of the trade
the price moves significantly in the trades favor. The system moves the SL right below
the open price to 0.6861 based on TS settings (Figure 17). If the price hits the SL at
this moment the trade closes with 1 pip in profit. However, the price moves towards
take profit and the system moves the SL to 0.6860 and 0.6859 in less than 1 minute.
Now the minimum profit would be 3 pips.

Figure 17

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 30

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

After a few seconds the price further moves toward the TP and the BE tool moves the
SL 9 pips below the open price (i.e. to 0.6853). The EURGBP EA activates the BE
tool after the TS tool. In many other pairs the BE tool gets activated before the TS
tool.

Further movement of the price in the trades favor enables the Mid-TP tool and the
system moves the SL to 0.6847 at 2:47 pm GMT (Figure 18). The minimum profit
would be 15 pips which is almost 50% of the total profit target.

Figure 18

Closing the Trade

The trade closes at TP. The price hits TP at 2:28 pm GMT and generates 32 pips profit
(Figure 19).

Figure 19

The above example was one of those situations that ended up in profit. However, as
you could see the system changed the SL a few times to make sure the trader loses the
least and gains the most.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 31

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

The Back-test Results

ince the parameters of the EAs change from time to time we publish the latest
back-test reports on our website. You must also consider this fact that back-test
does not show the best realistic report about the behavior of the system. We
therefore publish our live trades statement along with forward-test reports on

http://www.pipboxer.com/reports

If you are still interested in back-test reports please visit the following page on our
website:

http://www.pipboxer.com/fximages/v206/index.htm

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 32

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

How to Use PipBoxer v2.0

very  PipBoxer  package  contains  three  libraries,  three  include  files,  an
indicator, an activation file, and one or more Expert Advisors. Please refer to
the  “Installation  Guide”  for  more  information  about  installing  these  files
correctly.  When  the  installation  is  complete  you  need  to  attach  PipBoxer

Expert Advisors to 15 minute charts in MetaTrader 4 terminal. For example you need
to attach PipBoxer for GBPUSD to the M15 chart of British Pound vs. US Dollar. If
you do not know how to attach EAs to charts and where to place the PipBoxer v2.0
files refer to

section 2

of this guideline. Make sure to enable live trading with EAs.

We expect that you have basic knowledge of using MetaTrader4 for the
purpose of installation and using our EAs.

I suggest forward-testing the EA on a demo account for a while. When you feel
comfortable with the EA you may start live trading. When you are trading live it is
better to use risk management tools to reduce the risk of losing your money.

To be able to trade with PipBoxer v2.0 your computer needs to be connected to the
internet all the time. The analysis tools and MM tools won’t operate properly if your
computer disconnects from the internet or your broker’s server.

You may turn off your computer or close MetaTrader4 when the market is
closed.

In case there are two EAs available for the same pair you may open the M15 chart
twice and attach each EA to one of the charts. They will operate smoothly.

Minimum System Requirements
The EAs are currently working on Build 204 or a newer version of MT4. If you are not
using this build upgrade your platform.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 33

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

Other minimum system requirements are the same as requirements to use the MT4
terminal.

You may encounter some limitations set by your broker such as prohibition
from the use of EAs and/or trailing stops. Contact your broker to remove such
limitations.

External Variables Settings
The only settings that you need to change is the “_server_time” external variable. For
more information about setting this variable refer to “

The _server_time Variable

”

under section 3 of this manual currently located on page 22.

Assigning the correct value to the “_server_time” variable is critical. Do not
overlook it.

External variables fall into three categories:

• Group 1: Trading Variables

_server_time

(default value = 1): This variable defines the server time

of your broker with respect to GMT. Please refer to

page 22

of this

manual for more information about this variable.

_short_trades

: It “false” the system won’t enter short trades. The

default value is “true”.

_long_trades

: It “false” the system won’t enter long trades. The

default value is “true”.

_max_takeprofit

: Defines the maximum take profit in pips targeted by

each trade. For example if you set this variable to 300 the maximum
profit that you can make per trade does not exceed 300 pips. We have
optimized this value for every currency pair but gave you the capability
to override our calculated value.

_max_stoploss

: Defines the maximum stop loss in pips targeted by

each trade. For example if you set this variable to 300 the maximum
loss that may occur per trade does not exceed 300 pips. This feature is
especially useful for those who use fixed lots to trade. It helps them to
control their maximum loss.

_quick_be

: Moves the stop loss 1 pip above the open price when the

market teaches this value. For example if you set this value to 50, if the
market moves 50 pips in your favor the stop loss moves 1 pip above

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 34

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

your open price and your trade is locked in profit. We have optimized
this value for each EA but you may override it at your own discretion.

_max_open_trades

(default value =10): If the number of open trades

whether opened by PipBoxer or other methods is equal to or greater
than this variable PB won’t initiate a new trade.

_close_at_the_end_of_day

(default value =false): If “true” closes open

trades around 4:00 PM EST.

_draw_pb_box

(default value = true): Shows the analysis box on the

chart. It is a visual aid and has no effect on the behaviour of the
system.

_draw_stripes

(default value = true): Draws the trading stripes if there

is a trading opportunity ahead. It is a visual aid and has no effect on
the behaviour of the system.

_draw_arrows

(default value = true): Draws arrow(s) on the analysis

(peach) box to show the potential direction of the trade. It is a visual
aid and has no effect on the behaviour of the system.

trades_slippage

(default value =2): Represents the maximum

deviation of the open price from the requested price in pips. The
larger this value the less is the chance of getting re-quoted. However,
you increase your risk of losing the trade.

• Group 2: Risk Management Variables

Value_At_Risk

(default value = 1): This variable defines the maximum

percentage of the account balance that you accept to lose in a single
trade. For example if your account balance is $2,300.00 and
Value_At_Risk is set to 2% you may lose up to $46.00 per trade. Your
losses might be slightly higher than this value due to limitations set by
your broker. The maximum value that you can assign to
Value_At_Risk is 10 (i.e. 10%). I do not recommend assigning higher
values. However, if you want the system to accept higher values set the
“account_risk_control” variable to “false”.

user_lot_size

(default value = 1): If you want to trade fixed lot sizes

you  need  to  assign  0  (zero)  or  a  negative  value  to  “Value_At_Risk”
and  then  the  lot  size  value  to  this  variable.  For  example  if  you  are
willing  to  trade  0.5  lots  per  trade,  assign  0  or  a  negative  value    to
“Value_At_Risk” and 0.5 to “user_lot_size”.

no_risk_balance

(default value = 0): This variable allows you to

exclude part of your account balance from lot size calculations.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 35

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

account_risk_control

(default value = true): When true, if you assign

a value greater than 10 to Value_At_Risk it generates a warning
message and replaces the value with 10. With the help of this variable
you make sure that you do not assign a high VAR to your trades by
mistake.

enter_high_risk

(default value = false): This variable is “false” by

default meaning that the system does not enter trades that might lose
over the specified VAR. If you alter this variable to “true” you might
lose more than what you expect.

above_max_lots_ok

(default value = true): If “true” when the

calculated lot number is greater than the maximum lot number
allowed by your broker the system trades the maximum lot number. If
“false” the system won’t trade in such situations.

bypass_margin_call

(default value = true): If “false” the system will

not enter trades that might result in margin call. However, since some
of the brokers do not provide the system with correct margin call
information this variable is “true” by default.

• Group3: Money Management Variables

_move_to_break_even

(default value = true): If “true” stop loss

moves to break-even point or near to break-even point when the price
advances in the trade’s direction. The exact behaviour of this feature
varies from one currency pair to another.

_trailing_stop_available

(default value = true): If “true” stop loss

follows the price with a specific distance when the price advances in
the trade’s direction. The exact behaviour of this feature varies from
one currency pair to another.

_move_to_mid_TP

(default value = true): If “true” stop loss moves to

somewhere in the middle of open price to take profit value when the
price significantly moves in the trade’s direction. The exact behaviour
of this feature varies from one currency pair to another.

_compromise_TP

(default value = varies): If “true” take profit moves

to break-even point or near to break-even point when the price moves
in the opposite direction of the trade. The exact behaviour of this
feature varies from one currency pair to another.

_neg_TS_available

(default value = varies): ): If “true” take profit

follows the price with a specific distance when the price moves in the
opposite direction of the trade. The exact behaviour of this feature
varies from one currency pair to another.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 36

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

_move_to_mid_SL

(default value = varies): If “true” take profit moves

to somewhere in the middle of open price to stop loss value when the
price significantly moves in the opposite direction of the trade. The
exact behaviour of this feature varies from one currency pair to
another.

The variables affect the EA attached to the current chart. If you want to change
a variable for all of the pairs you need to change if for every EA one by one.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 37

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

PipBoxer v2.0 vs. PipBoxer v1.0

hen I built the first version of PipBoxer I thought it was an EA like many
others in the market but apparently it was not. Many people forward tested
the system and even traded it live and found it profitable. More
importantly several discussions took place around the improvements to

PB.  The  PB  thread  on  ForexFactory.com  was  viewed  over  45000  times  in  about  3
months  resulting  in  over  900  posts.  Interestingly  there  are  many  other  forums  in
English or other languages that discuss this EA.

Because of this level of attention from traders and because of the great comments I
received from Forex Factory members, through Private Messages, and also emails I
decided to make several changes to the EA to convert it from an EA to a complete
trading package. The following table compares many of the features of PipBoxer v2.0
with PipBoxer v1.0 to show you their differences.

PipBoxer v2.0

PipBoxer v1.0

Analyzes the market everyday and initiates a
trade if there is an opportunity, no matter
whether a trade is open from previous days or
not.

Analyzes the market everyday but initiates a
trade only if all of the trades on the same pair
from previous days are closed. This may result
in late entry into the market and loss of
money.

If it loses a trade it doesn’t enter a “revenge
trade” and waits for future opportunities.

If it loses a trade within its operation time
enters a trade in opposite direction. This
approach may increase your loss size in a
single day.

It uses a stripe (i.e. a price range) to enter the
market. If the price jumps above or below the
stripe it doesn’t enter the trade to avoid losses
due to temporary volatility.

It doesn’t care about the current price and
enters the market as soon as possible. This
may result in being trapped by a volatile
market.

You can force the EA to close the trades at the
end of the day. This feature is available for
certain circumstances and not recommended
in general.

Not available.

It considers CCI changes for 5 time periods
and averages them out with an optimized
approach. The CCI values are calculated at
the time of analysis to avoid being affected by
sudden changes to the market.

It considers the CCI changes of the previous
bar at the time of entering the market. This
results in being exposed to sudden changes of
the market.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 38

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

PipBoxer v2.0

PipBoxer v1.0

Take Profit and Stop Loss values depend on
the box size resulting in a more flexible
system.

Take Profit and Stop Loss are fixed in most
cases and rarely change due to the box height
resulting in a less flexible system.

There are several money management tools in
place to enhance the results. These tools
move SL and TP levels according to price
changes. Trailing Stop, Move to Mid-TP, Move
to BE, Compromise TP, Trailing Profit, and
Move to Mid-SL are the tools to achieve this
goal.

The user can easily enable or disable any of
these tools.

Only a simple Trailing System is in place.

The user can disable trading while the EA is
still active to manage previously opened
trades.

Not Available.

The user can specify the maximum number of
open trades. If the number of open trades –
whether manual or automatic – reach or
exceed this value the EA will not open a new
trade.

Not Available.

The history (i.e. the box length) can vary for
different pairs resulting in better analysis.

The box length for all pairs is 30 bars resulting
in a less flexible analysis.

The improved risk management tool enables
the EA to calculate number of lots for accounts
that their currency of denomination is not
USD.

The risk management tool provides correct
results for USD based accounts only.

Trades more than 10 pairs.

Trades 5 pairs only.

If you assign a positive value to
“Value_At_Risk” does not enter trades that
might result in margin call.

Not Available.

In general PB2 is a more reliable tool. There are many features in place to make it a
better trading tool.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 39

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

Beware of Risks

orex traders are aware that this market is probably one of the riskiest markets
in the world. There are several reasons that make Forex a risky market. The
fundamentals behind forex are very complex and make it unpredictable. Forex
is directly affected by both economic and political news. The highly leveraged

environment of forex is another reason that makes it so risky.

Other than the inherited risks of forex trading there are many other risks that you need
to take into account. Some of them are as follows.

The Internet Connection
The MetaTrader terminal is by default located on your computer while you need
information through the internet to be able to enter and manage trades. One of the
greatest risks that you may encounter is being disconnected from the internet. There
are different ways that you can cope with this risk. For example you can get a good and
reliable service and also attach your computer to a UPS machine to make sure the
system is always on. The other solution could be installing the terminal on a Virtual
Dedicated Server (VDS) also known as a Virtual Private Server (VPS). Many of such
servers guarantee over 99% uninterrupted connection to the internet. If you want to
use a VDS service make sure it really works for you.

The Server Connection
Even if the trading terminal is connected to the internet all the time it may get
disconnected from the trading server. There is no specific solution to this problem.
That’s why PipBoxer always uses its trading tools to define SL and TP clearly. In case
of disconnection from the trading server the worst case scenario would be hitting the
SL.

The Broker
Know your broker. Some brokers do not honor TP or SL all the time and may put you
into trouble. PipBoxer uses several tools to mitigate the broker’s interference but at the
end of the day it is you who should select the broker wisely.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 40

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

The Trader
PipBoxer is a mechanical system that works based on solid rules but if you are not a
disciplined trader you may ruin everything. Make sure to close a trade manually only if
you are quite sure that it won’t work for you. Sometimes a trade moves against you for
several days but eventually hits the TP. PipBoxer MM tools can help you to take care
of your trades but your interference can ruin the overall performance of the system. If
you do not feel comfortable with PB demo trade it for a while and enter live trades
only if you feel this is the right system for you.

Trading with fixed lot size is not a good idea. I suggest using risk management tools to
make sure the drawdown is under control. Do not increase VAR to huge numbers. It
can be destructive especially on a live account. If you want more, trade more than one
pair. For example pick 3 to 5 pairs that show the best results or your broker offers the
tightest spreads and then risk 1 to 2 percent on each.

The EAs
The built in risk manager in the EA calculates lot size based on the maximum loss per
trade (or VAR). However, the brokers do not allow you to trade any number of lots
you want. For example the calculations might show that you need to trade 1.072 lots
while your broker might not allow you to trade less than 0.1 fractions. This means that
you either need to trade 1 lot or 1.1 lots. The system rounds the number to the nearest
value allowed by your broker. In this case it would be 1.1 lots which is more than the
calculated lot size. Therefore if the trade hits the SL you will lose a little bit more than
what you expected. Be prepared for such incidents. To avoid this problem make sure
to set the “enter_high_risk” variable to “false” and lower “Value_At_Risk” below your
loss tolerance. For example if you wish to lose not more than 2% per trade, enter 1.5%
to avoid unexpected losses.

Although I have done my best to predict all policies set by the broker there might be
exceptional cases that you would see contradictions between the broker’s policy and
the EA. For example the price approaches the TP and the EA tries to move the SL to
mid-TP but the broker doesn’t accept the request. Such incidents might happen if the
price is very near to the TP. You might rarely encounter such problems. One approach
is to manually correct the trade to the nearest value allowed by your broker. You may
also contact your broker and ask them to fix the problem. They might be able to help.
While I cannot guarantee to be able to fix such broker related problems you may also
contact me via

info@pipboxer.com

to see if I can modify the program to deal with

such situations.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 41

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

Warning and Error Messages

There  are  two  types  of  error  messages  that  you  might  receive  during  the  course  of
trading with PipBoxer v2.0: MetaTrader and PB. You usually see the MetaTrader error
messages  when  an  open  trade  request  cannot  go  through.  You  receive  an  error
message  that  explains  the  problem.  Such  errors  appear  on  the  Journal  tab  of  the
Terminal window.

The Commercial Version Messages
The PB errors either appear in a popup window or on the Journal tab of the Terminal
window. Some of the error messages are just warnings and do not interfere with the
flow of the program. They either automatically change the settings or allow the trader
to decide whether to continue or change the settings. Other messages halt the
execution of the program till the situation changes either by the user or due to changes
in the market condition. Here is a list of PB errors:

PB Error 101 – Make sure to attach this EA to a (symbol) chart only.

If you attach an EA that is designed for a specific symbol to another one you receive
this message on a popup window. PipBoxer replaces (symbol) with the relevant symbol
name. For example if you attach PipBoxer_v2.0_GBPUSD to a USDCAD chart the
error message reads “PB Error 102 - Make sure to attach this EA to a GBPUSD chart
only.”

This error message does not halt the program because some brokers might
use special symbols for the forex pairs. In such cases the program does not
recognize the chart and shows the error. If you have attached the EA to the
correct chart and still receive this message simply ignore it.

PB Error 102 - Switch to an M15 chart. The EA is designed for M15 charts only.

This error message appears on a popup window and halts trading. It allows the system
to manage open trades but won’t allow it to open new trades. To avoid this message
change the timeframe to M15.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 42

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

PB Error 204 - Insufficient number of bars in the chart.

If the chart contains less than 100 bars the system does not enter a trade or manage
existing trades. Reload the chart to make sure there is a correct chart in place.

PB_RM Error 3202: Market information not available.

This  error  message  appears  on  the  Journal  tab.  If  PipBoxer  fails  to  get  market
information it cannot calculate the correct lot size and avoids entering new trades. This
error could be generated due to problems with your trading terminal. You may restart
the MT4 application and if the problem insists contact your broker. As an alternative
solution  you  may  trade  fixed  lot  sizes.  To  trade  fixed  lot  sizes  alter  the
“Value_At_Risk”  external  variable  to  0  and  assign  your  desired  lot  number  to  the
“user_lot_size” external variable.

PB_RM Error 3203: No money left to trade. Reduce no_risk_balance.

This error appears on the Journal tab ad stops system from trading. It shows that your
“no_risk_balance” value is greater than the account free margin. Reduce this value to
be able to trade.

PB Error 3204 - Lot size smaller than min lot size.

This error message appears on the Journal tab. If the calculated lot size is less than the
minimum lot size allowed by your broker and the “enter_high_risk” variable is “false”
you get this message. You may alter “enter_high_risk” to “true” to avoid this message
but you are exposed to the danger of losing money more than the specified Value At
Risk (VAR).

PB_RM Error 3205 - Lot size larger than max lot size.

If the calculated lot size is greater than the maximum lot size allowed by your broker
and the external variable “above_max_lots_ok” is false the system will not open the
trade. You need to reduce Value_At_Risk or change above_max_lots_ok to true to
avoid this error message.

PB_RM Error 3206 - The risk of Margin Call is high.

The error message appears on the Journal tab. This error appears when you might
have the chance of receiving a margin call. The system won’t enter a new. You might
be able to enter a trade by reducing the value assigned to Value_At_Risk. You may also
bypass this error by trading fixed lot sizes. The other option would be to assign “true”
to the “bypass_margin_call” variable.

PB_MM Error 4201: I cannot find the order. OrderSelect error.

This error message appears when the Money Manager fails to select an order for
analysis.

PB Warning 3201 - Lot size smaller than min lot size. Trade min lot size.

The warning message appears on the Journal tab. If the calculated lot size is smaller
than the minimum lot size allowed by your broker the system trades the minimum lot
size. This situation happens when the “enter_high_risk” external variable is “true”.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 43

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

This message is just a warning message. It won’t interrupt trading or managing open
trades.

PB Warning 3202 - Lot size larger than max lot size. Trade max lot size.

The warning message appears on the Journal tab. If the calculated lot size is greater
than the maximum lot size allowed by your broker the system trades the maximum lot
size. This message is just a warning message. It won’t interrupt trading or managing
open trades.

PB Warning 303 - _account_risk_control in effect. The risk replaced with 10%.

If the external variable “_account_risk_control” is “true” and you enter a value greater
than 10 to VAR the system replaces the VAR with 10 to mitigate the risk. To avoid
receiving this message set “_account_risk_control” to “false”.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 44

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

Terms, Conditions, and Disclaimer

Terms and Conditions:

PipBoxer  v2.0  Expert  Advisors  and  Indicator,  and  their  future  updates,
and  all  related  presentations  and  documents  are  under  Investatech  Inc.
(www.investatech.com)  copyright.  The  files  and  programs  are  supported
by  Canadian  and/or  international  copyright  laws.  Any  violations  will  be
prosecuted.

PipBoxer v2.0 Expert Advisors and Indicator are Non-For-Resale
software programs. You purchase these programs for your own personal
use. You are not permitted to share these applications with others either
for free or in exchange of money.

If you are interested in purchasing multiple licenses please contact
info@pipboxer.com.

Disclaimer:
Forex  trading  has  large  potential  rewards,  but  also  large  potential  risk.  You  must  be
aware of the risks and be willing to accept them in order to invest in the forex market.
Don't  trade  with  money  you  can't  afford  to  lose.  This  ad/presentation  is  neither  a
solicitation  nor  an  offer  to  trade  forex.  No  representation  is  being  made  that  any
account will or is likely to achieve profits or losses similar to those discussed on this
ad/presentation. The past performance of any trading system or methodology is not
necessarily indicative of future results.

Trading  foreign currencies  is  a  challenging and  potentially  profitable opportunity  for
educated  and  experienced  investors.  However,  before  deciding  to  participate  in  the
Forex  market,  you  should  carefully  consider  your  investment  objectives,  level  of
experience  and  risk  appetite.  There  is  considerable  exposure  to  risk  in  any  foreign
exchange transaction. Any transaction involving currencies involves risks including, but
not  limited  to,  the  potential  for  changing  political  and/or  economic  conditions  that
may substantially affect the price or liquidity of a currency.

P I P B O X E R V 2 . 0 . 6

A L P A R S A I

Page 45

Disclaimer

: Forex is a risky market. There is no system or person who can guarantee your success. You

Moreover, the leveraged nature of FX trading means that any market movement will
have an equally proportional effect on your deposited funds. This may work against
you as well as for you. The possibility exists that you could sustain a total loss of initial
margin funds and your position will be liquidated and you will be responsible for any
resulting losses. Investors are recommended to lower exposure to risk by employing
risk-reducing  strategies  such  as  'stop-loss'  or  'limit'  orders.  Investatech  Inc.,
PipBoxer.com  and/or  the  author  of  PipBoxer  Expert  Advisors  (i.e.
aparsai/pipboxer/Al Parsai) and strategy will not be held responsible for the reliability
or accuracy of the information available on this ad/presentation. The content provided
is put forward in good faith and believed to be accurate, however, there are no explicit
or  implicit  warranties  of  accuracy  or  timeliness  made  by  PipBoxer.com  and/or
aparsai/pipboxer/Al Parsai.

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.

10.

Index

_close_at_the_end_of_day, 22
_compromise_TP, 27
_move_to_break_even, 26, 27
_move_to_mid_SL, 27
_move_to_mid_TP, 26
_neg_TS_available, 27
_server_time, 28, 33
_trades_allowed, 21
_trailing_stop_available, 26

15 minute charts, 32

account_risk_control, 20
allowed, 10, 42, 43
Analysis, 12, 28
analyzes, 18, 21, 28
Analyzes, 37
arrows, 15
attach, 4, 5, 8, 32, 39, 41
Attaching, 5, 8
AUDUSD, 12, 17

Back-test, 31
BE, 26, 27, 38
box height, 12, 38
box size, 11, 38
Box Size, 12
Breakout, 14
breakouts, 11, 14, 25
brokers, 10, 39

calculations, 14, 16, 28
CCI, 14, 16, 37
CFTC, 45
Closing, 30
Common, 8, 10
Compile, 7
compiled, 6, 7
Compiling, 6
concept, 25
Conditions, 44
Connection, 39
copyright, 44
counter_trade, 13, 22

currency, 12, 20, 26, 28, 38

demo, 32
dialog box, 8, 9, 10
direction, 15, 22, 25, 26, 27, 29, 37
disabled, 13, 27
disciplined, 3, 40
Disclaimer, 44
discretional, 3
drawdown, 18, 19, 20, 40

EA, 4, 5, 6, 7, 8, 9, 10, 12, 13, 20, 21, 27, 32, 37, 38
enabled, 14
enough, 26
Entering, 3, 11, 22, 28
Error, 41, 42
EST, 12, 22, 28
EURGBP, 12, 17, 28, 30
EURJPY, 12, 17
EURUSD, 12, 17
ex4, 6, 7
executable, 6
exiting, 11, 22
Expert Advisors, 4, 6, 8, 9, 10, 15, 16, 19, 24, 25, 32,

33, 36, 41

external, 9, 10, 13, 22, 33, 42, 43

False, 14
features, 25, 37, 38
Filtering, 11, 14
fixed, 18, 19, 38, 40, 42
Forex, 3, 37
Formats, 6

GBPJPY, 12, 17
GBPUSD, 12, 17, 20, 32
GMT, 12, 28, 29, 30

highest high, 12

identification, 18
indicator, 16, 17, 28

information, 14, 39, 42
Inputs, 9, 10
install, 4, 6
Insufficient, 42
Internet, 39
investment, 18, 19

Journal, 41, 42, 43

Levels, 17
Location, 5
losing, 19, 20, 26, 32
lot, 18, 20, 25, 40, 42, 43
lower, 14, 16, 28
lowest low, 12

M15, 32, 41
market, 3, 4, 5, 12, 14, 18, 19, 21, 25, 26, 27, 32, 37,

39, 41, 42

maximum, 18, 21, 26, 38, 42, 43
mechanical, 3
menu, 8, 10
Messages, 41
MetaEditor, 6, 7
MetaTrader, 4, 5, 32
minimum, 20, 29, 30, 42
MM, 26, 27, 29, 32, 40
money, 3, 11, 18, 19, 20, 21, 25, 26, 27, 32, 37, 38, 42
money management, 3, 11, 21, 27, 38
Money Management, 26
mq4, 6
MT4, 5, 6, 8, 10

Navigator, 7, 8
no_risk_balance, 20
normal_trade, 22
NZDUSD, 12, 17

optimized, 26, 27, 37
OTC, 3
Over-The-Counter, 3

PipBoxer, 1, 4, 6, 11, 12, 14, 18, 20, 22, 25, 26, 27,

32, 37

PipBoxer_Indicator, 16, 17, 28
PipBoxer_Signal, 14

popup, 41
Properties, 10

rectangles, 15
reliable, 38
restart, 42
risk management, 11, 18, 20, 26, 27, 32, 38
Risk Management, 18

Scenario, 28
Server, 39
signals, 5, 14
size, 11, 18, 20, 26, 37, 40, 42, 43
SL, 12, 20, 26, 27, 29, 30, 38, 39
solid rules, 40
source code, 6, 7
strategy, 11
stripes, 12, 16, 28
symbol, 41
system, 11, 12, 14, 16, 18, 20, 21, 22, 25, 26, 27, 28,

29, 30, 37, 38, 39, 40, 41, 42, 43

terminal, 5, 6, 8, 10, 16, 32, 39, 42
Terminal, 41
Terms, 44
Toolbox, 7
TP, 12, 26, 27, 29, 30, 38, 39, 40
Trader, 40
trades, 3, 5, 8, 11, 14, 18, 20, 22, 25, 26, 27, 37, 38
trading stripes, 25
trading system, 18

understanding, 11, 28
USDCAD, 12, 17
USDCHF, 12, 17, 20, 26
USDJPY, 5, 12, 17

v2.0, 18, 20, 22, 25, 26, 27, 32, 37
Value_At_Risk, 42
value-at-risk, 18
Value-At-Risk, 18
VAR, 18, 19, 20
Visual Aids, 15