Mega Droid
Mega Droid
Mega Droid
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Copyright 2009-2013
Copyright Information
REPRODUCTION AND OR TRANSLATION OF ANY PART OF THIS WORK BY ANY
MEANS ELECTRONIC OR MECHANICAL INCLUDING PHOTOCOPYING BEYOND
THAT PERMITTED BY COPYRIGHT LAW WITHOUT THE PRIOR WRITTEN
PERMISSION OF THE PUBLISHER IS UNLAWFUL.
Authors
Website
Publisher
Index
Foreword
- New Users
- Existing Users
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Configuring MetaTrader
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26
40
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Inputs An Explanation
47
- System Parameters
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49
- Strategy Parameters
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50
50
54
Stopping Trading
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Strategy Testing
58
52
63
65
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Foreword
We would like to thank you for purchasing the Forex MegaDroid robot
the challenge of creating a system which flourished, regardless of market
condition, was extremely difficult though very rewarding.
One of the largest obstacles we needed to overcome was the fact that the
all-out assault on brokers over the last 18 months by owners of another
very successful robot has resulted in a very hostile environment for any
new robot to exist in.
Various measures have been implemented by brokers (most especially by
dealing desk brokers) in an attempt to stem a flood of winning trades
these measures include price-spiking, excessive spread widening and, in
an extreme case, simply preventing all robots from trading specific
currency pairs during certain market hours.
New Users
If you do not have MetaTrader 4 installed on your computer then you can
download a copy by going here and requesting a practice account:
http://www.finfx.fi/account.php
We personally like FinFX for several reasons not least that they are
extremely helpful, they do not penalize robot users (unlike some
brokerages), they have excellent spreads (which are perfect for Forex
MegaDroid!) and they can often open your live account in just minutes.
Of course, you are free to use any MetaTrader 4 broker you wish but
FinFX are our first choice and we suggest that you evaluate them even if
you already have an account elsewhere.
Simply (left-) click the link and a download window similar to the
following one should appear:
Either click the Save button, then select Desktop followed by Save
from the window that appears next:
...then double-click (left mouse button) the new mt4setup icon that will
have been created on your Windows Desktop, or...
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In either case, you are likely to be asked to confirm that you know / trust
the source of the file and that it is okay to continue this is perfectly
normal and simply function of the Windows in-built security system so
just agree to any questions asked.
Please be aware that you *might* receive a warning from your Anti-Virus
system that the mt4setup file contains a virus this is not the case at all
and any anti-virus warnings should be ignored. The MetaTrader 4 system
includes protection code to prevent hackers from reverse-engineering the
software - this protection code looks very virus-like to some Anti-Virus
systems which are unable to determine the difference.
As you make your way through the installation process, you will see
screens looking very similar to the following ones:
Select your preferred language then click the Next button to continue...
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Important: Make a note of the installation folder you will need to know
the location later in order to install any robots (EAs Expert Advisors),
custom indicators, code libraries and/or templates that you may wish to
test or trade.
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When MetaTrader 4 starts up for the first time, you will need to create a
demo / practice account.
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First, complete...
...the details shown in red
...then select your country
...then check the agreement box...
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Normally on this screen you can just click the Next button to continue...
(if more than one server is listed, select one with Demo in its name;
otherwise just leave the default server selected)
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Existing Users
If you already have MetaTrader 4 installed on your computer then the
first step is to ensure that you have the most recent version. To do this,
click Help in the main MetaTrader 4 menu, then click About... - a
window similar to this:
...will appear showing the version and build details plus the date it was
released.
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Whenever you see a screen like this, click the Start button and
MetaTrader 4 will update itself to the latest release. The process does not
take very long and will reduce the possibility of you encountering issues
with robots that you may wish to use.
Click the Update and Restart button to launch the updated version of
MetaTrader 4.
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Configuring MetaTrader 4
Once MetaTrader 4 has been installed, the next thing to do is go to the
Tools Options menu.
Select the Expert Advisors tab and ensure that the highlighted options
are set exactly as shown below:
Do not overlook the Confirm DLL function calls option (which should be
unchecked) when doing this or the robot will not function correctly later.
You may also wish to uncheck Disable experts when the account has
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been changed and Disable experts when the profile has been changed
options though this is more of a convenience rather than a requirement.
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Once you have the files on your Windows Desktop, you will need to locate
the icons. Please note that the robot is a .ex4 file, not a .exe file. Do
NOT attempt to execute it as it will not run as a Windows application, it
can only function within the MetaTrader 4 trading platform.
Depending upon how your computer is set up, the MegaDroid robot icon
may look like this,... like this... or may display an entirely different icon
image.
There is also the support (DLL) file which will probably look like this.
The actual icon image displayed for each file is not really relevant and in
no way affects the operation of the system.
Having said that, whilst the icon image is not relevant, please be careful
to locate the correct file do not confuse the robot (or support) file with
any other MegaDroid file if you are in any way unsure, click the icon
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once then hover your mouse over the highlighted icon you will see a
small panel appear with some details about that file.
The details for the robot file icon should state Type: EX4 File.
...and the details for the support file icon will usually not state anything...
...because the file type is a standard Windows file type, whereas .ex4
(the robot file type) is not.
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Once located, simply click the MegaDroid icon using your right mouse
button to bring up the context menu and select Copy.
The next thing to do is locate the correct folder to install the robot into.
As standard, all installations of MetaTrader 4 follow a specific convention
for installing the various files which make up the MetaTrader system:
C:\Program Files\MetaTrader Folder\experts
Primary Path
Application Folder
Robots Folder
Unless you have deliberately chosen a different location, the Primary Path
(C:\Program Files) will always remain constant.
The only variation
appears in the newer 64-bit (x64) versions of Windows. On these
systems, the older technology, 32-bit applications such as MetaTrader 4
are installed into the C:\Program Files (x32) folder.
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If you are not certain where your installation is located then one simple
way of finding out is to position your mouse cursor directly over (do not
click!) the icon on your Windows Desktop that you use to start
MetaTrader 4...
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This example shows Windows Vista but Windows XP and Windows 7 look
quite similar and is equally intuitive.
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The next thing to do is expand out the Program Files folder by clicking
the small [+] (Windows XP), or small arrow (Windows Vista and Windows
7) to the left of it...
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Now, scroll through the list of folders to locate the installation folder for
MetaTrader and expand that too, followed by the experts folder:
By simply clicking the experts folder icon using your right mouse button
(to bring up the context menu) and selecting Paste...
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...as shown here, the robot will appear in the experts folder...
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The next thing to do is repeat this process for the support file
(MegaDroid.dll)...
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As with the robot (.ex4) file, the support (.dll) file will also be placed in a
specific folder, as shown below:
C:\Program Files\MetaTrader Folder\experts\libraries
Primary Path
Application Folder
Robots Folder
Libraries Folder
(DLL files)
Just as with the robot file, locate the support (DLL) file then simply click
the MegaDroid.dll icon using your right mouse button to bring up the
context menu and select Copy.
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This time, click the libraries folder icon using your right mouse button
(to bring up the context menu) and selecting Paste...
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...as shown here, and the support (DLL) file will appear in the libraries
folder...
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It is very important that the support (DLL) file is not renamed it must
be left exactly as we provide it on the download page.
If you rename this file in any way then Forex MegaDroid will not work!
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If everything is correct then the list will contain the MegaDroid robot
along with any other expert advisors that you have installed or were
provided as part of the MetaTrader 4 system.
Please note that the MegaDroid icon is gray ( ) whilst other icons in the
list are colored ( ) this is perfectly normal.
A colored icon means that you have the source code for that particular
expert i.e. the instructions that tell the expert how to trade. A gray icon
means that you do not almost all commercial experts will be gray.
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Once the chart is open, left-click the MegaDroid icon in the Navigator
and it drag to the chart.
Changing the chart timeframe once the robot is attached is not an issue.
When you drop the expert advisor onto the chart, a Properties dialog
window will open.
The dialog contains two tabs Common and
Inputs.
The Common tab looks like this:
It is very important that all three of the settings circled in red match the
image above or the expert advisor will not function correctly.
Please pay special attention to the Confirm DLL function calls option
which should be unchecked.
Failure to correctly set this option will result in several pop-up windows
similar to the following:
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You can click the Yes button each time to continue (clicking any other
button will prevent the expert advisor from functioning correctly) but you
should really click the Cancel button, close the chart then correct the
settings as shown in the Configuring MetaTrader 4 section of this
manual before dragging and dropping the robot onto a new chart.
Assuming that everything else is correct, the Inputs tab looks like this:
By scrolling the list, you will see that the Inputs tab has a number of
adjustable settings which are explained in the following pages.
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To change the value of any setting, double left-click in the Value column.
For example, to change the Slippage setting, simply activate the
property editor by double-clicking the value area (the right portion of the
parameter line) as shown below and the property editor will activate.
Once changes are complete, click the OK button to restart the robot.
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Inputs An Explanation
The first thing you will notice is that there appears to be a large number
of inputs, however, many are simply descriptions and section headers.
The remaining user settings are explained below:
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AutoLocalGmtOffset:
When enabled (default), the MegaDroid robot will calculate the GMT
Offset of your brokers server from information provided by Windows.
This is often the safest approach as it can automatically adjust for
Daylight Saving. Unfortunately, this is not possible when using the
Strategy Tester and a manually specified value is therefore required in
order to achieve realistic back-tested results. Determining the correct
value is covered later in the section on Strategy Testing.
AutoServerGmtOffset:
When enabled (default), the MegaDroid robot will calculate the GMT
Offset of your brokers server from information provided by our trade
server. This is an additional approach and a safeguard for instances
where the local Windows time settings are incorrect.
As with
AutoLocalGmtOffset, the facility does not function within the Strategy
Tester and a manually specified value is therefore required in order to
achieve realistic back-tested results. Determining the correct value is
covered later in the section on Strategy Testing.
Setting AutoLocalGmtOffset and AutoServerGmtOffset to False will
force the MegaDroid robot to trade based on the GmtOffset value.
S1_Reference:
This parameter is used to identify Strategy 1 trades. This is one of the
primary methods that unscrupulous brokers use to identify which robot(s)
you may be using so it is strongly suggested that you enter a random (or,
at least, non-default) value here. Changing the value regularly is also
highly recommended. Simply ensure that no other EA you may be
running is using the same Reference / Magic number.
S2_Reference:
This parameter is used to identify Strategy 2 trades. This is one of the
primary methods that unscrupulous brokers use to identify which robot(s)
you may be using so it is strongly suggested that you enter a random (or,
at least, non-default) value here. Changing the value regularly is also
highly recommended. Simply ensure that no other EA you may be
running is using the same Reference / Magic number.
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Note: Where apportioning of the risk capital would result in a lot size too
small to be traded, the minimum possible lot size will be used, in which
case, the actual risk would increase slightly above the specified level.
RecoveryMode:
An important trait of the MegaDroid robot is that it has a very high
success rate so consecutive losing trades are very, very rare. When
RecoveryMode is enabled this fact is exploited in the event of a losing
trade and the LotSize for all trades is doubled until the loss has been
recovered. Do not use with VolatilityAware and DollarAveraging. (Disabled
by default)
ConsiderCommission:
The robot will be considering the broker's commission on the client's
account, so the trades won't now close in zero gross profit and net loss
due to the commission but with sufficient profit to cover the commission
charges. This way, the minimal profit will be covering the commission
charges even for the break-even trades. Out tests show this system does
not worsen the trading results or the precision of the trades closure.
(Enabled by default)
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Preparing To Trade
That is about all there is to do!... everything has been set up, all of the
parameters have been configured so the only thing left to do is click the
OK button to start the robot trading!
Depending on how well you have followed instructions so far, there will be
one of three possible things displayed in the top-right corner of the chart
with the robot attached:
The first possibility is an X, as shown below.
This means that expert advisors have not been enabled and can be
confirmed by the red Expert Advisors button in the toolbar:
Simply click the button to turn it green and enable expert advisors:
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This means that the Common tab settings are incorrect. Either press the
F7 key or click the sad face to open the properties dialog window again
then confirm that the Allow live trading setting is checked before
clicking the OK button.
The final possibility is a smiley face which means that the robot is
correctly configured:
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Important: The version number displayed and the general content above
will change over time as new versions are released and additional
features are incorporated!
As you can see, there are various items of information displayed,
including two times, plus an offset.
Working from top to bottom, they represent:
Robot / Version / Currency pair
Status:
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Members Area:
Aggressive:
ServerTime:
This is the chart time and varies between brokerages the offset displayed will vary dependent upon which
broker supplied your copy of MetaTrader
The offset (2 in the example above) is the value that
you should set the GmtOffset parameter to when
using the Strategy Tester.
UtcTime:
GmtOffset:
Lot:
Spread:
Leverage:
Status:
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Stopping Trading
There are four ways to stop the Forex MegaDroid Robot from trading:
1) Click the green Expert Advisors button in the toolbar please be
aware that this will also stop any other expert advisors that you
may be running.
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3) Click the EUR/USD chart then press the F7 key to open the
properties dialog window. You can also right-click the smiley face in
the top-right of the chart window and from the context menu select
Expert Advisors => Properties. Once the properties dialog
window is open, switch to the Common tab and un-check the
Allow live trading option before clicking the OK button.
4) Last, but not least, simply close the chart by clicking the red X
button in the top-right of the chart window.
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Strategy Testing
If you intend to perform strategy testing then you will need data to test
against. When installed, MetaTrader contains no historical data at all so it
must be downloaded.
From the MetaTrader menu, click the Tools option, then select History
Center (alternatively, simply press the F2 key) and the following
window will appear:
The layout of the left-hand panel varies between brokers but the
operation is the same.
Start by clicking the small [x] to the left of Forex to open out the list of
available currency pairs.
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Next, locate the EUR/USD entry and double left-click it to expand out the
data timeframes.
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Now double left-click on the 1 minute (M1) tag which loads a few
recent data records.
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The last thing to do is click the Download button which will trigger the
download warning window...
Click the OK button to begin downloading the process can take several
minutes so be patient.
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A rather annoying issue with the data that can be downloaded is that it
includes a number of errors. It is possible to purchase excellent quality
data from commercial data providers but the cost tends to be prohibitive
usually in excess of $200 per currency pair and only for a limited
historical period (approximately 2 years).
Fortunately, it is possible to repair the most glaring errors in the free
data provided by MetaQuotes.
As soon as the download has completed, click the Download button
again. The download warning window will appear again and, a few
seconds after clicking the OK button, a new window will open, explaining
that no new data is available and offering you the option of recalculating
all timeframes.
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Brokerage
Live Trading
Back Testing
FinFX
+2 (+3)
+2
FXDD
+2 (+3)
+2
Forex Meta
+2 (+3)
+2
Insta Trader
+2 (+3)
+2
Alpari UK
+1 (+2)
+1
Alpari RU
+2 (+3)
+2
Gallant FX
+1 (+2)
+1
InterBank FX
+0
+0
ODL
+0
+0
Forex.com
+0
+0
IamFx
+0
+0
FxCBS
+2 (+3)
+2
ATC
+2 (+3)
+2
FXCM Trader 4
-4
FXCM MT4
+1
Oanda
- 5 (- 4)
-5
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...to display the Strategy Tester panel at the bottom of the MetaTrader
window.
Click here to select the expert advisor...
...here to select the currency...
...and here to select the 1-hr (H1) timeframe
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Once everything has been set, the Strategy Tester panel should look like
this:
The last task is to click the Expert Properties button which opens a
dialog window similar to the usual properties dialog covered earlier:
Accept the $10,000 initial deposit then click the Inputs tab.
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The Inputs tab lists the same parameters as the normal properties
window covered earlier but has some additional columns.
As this is the first time running a test with the Forex MegaDroid Robot,
some values will require changing (only update the Value column):
GmtOffset:
RiskLevel:
ReduceLots:
Optional
RecoveryMode:
Optional
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...which shows each trade, its profit (or loss) plus a running balance, and
the Graph tab which shows the trading results in graphical format:
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Quite often, the very last trade in a strategy test will appear as a losing
trade... but all is not as it seems!
If you look at the comment just to the left in the results list...
...you will notice the phrase close at stop. That does not mean what you
assume it does! As you can see in the following screen shot, the Stop
Loss did not get hit at all.
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The order was closed at 1.3770 yet the Stop Loss was at 1.3635 135
pips away! What actually happened is that the Strategy Tester reached
the end of the test period and still had that order open, so it was simply
closed.
That is an aspect of strategy testing that you always need to be mindful
of. The Strategy Tester can only do the best it can and sometimes that
can result in misleading information if you are not aware of how things
work.
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Once the test has concluded, you will want to review the Report tab
which provides a summary of the test results.
One final aspect of Strategy Testing that you should be aware of is the
inherent inconsistency between brokers. As I hope you already realise,
each broker will have different server times, treatment of Daylight Saving
Time, spreads, swap rates, etc.
All these things will impact on your testing results so great results on one
platform may equate to poor results on another.
To further complicate matters, the spread used by the Strategy Tester is
the actual spread when you begin your testing process so, tests initiated
during the main sessions will generally enjoy a narrow spread whereas
tests initiated during the Asian session may have spreads several pips
wider this can mean that Stop Loss levels which were missed during
main session tests may be hit during Asian session tests and will affect
the profitability.
These are just some of the things to keep in mind when running tests,
especially because this makes it quite difficult to reproduce results.
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the
displayed
options
in
the
Control
Panel
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window...
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Your system should be as shown below, with the upper option selected:
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If, for any reason, your system has the lower option selected...
...then simply click the upper option then click the Apply button. You
will be asked if you want to restart your computer - click the Yes
button. If your system does not restart automatically then restart it
manually.
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Having the lower option selected is very likely the reason for MetaTrader
crashing as only specified applications are allowed to function.
The list of permitted applications is here:
Most often, this list is empty i.e. no applications have been approved,
which means that applications like MetaTrader are forcibly shut down by
Windows as soon as they start up.
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It is also very possible that the robot will not trade for 24-48 hours,
regardless of broker, due to non-conducive market conditions. Hopefully
you would agree that standing aside when conditions are uncertain is far
better than entering into low probability trades which result in losses.
Remember that the objective of trading is profitability - it is NOT an
exercise in "thrill-seeking" from high-frequency trading!
You can find trade-by-trade results for recent years here:
http://www.forex-megadroid.com/?p=3#Results
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Use the File Create an Account option from the MetaTrader menu to
open a new account.
If possible, please also check the Experts and Journal logs for comments
which might assist us in particular, check for messages such as those
shown below (the important comment / warning is the `error 126`
message):
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EURUSD,H1:
cannot
load
library
If the `error 126` message is present then the DLL file has been blocked
so please locate the MegaDroid.dll file in the experts\libraries folder
using a file browser (as shown in the installation section of this manual)
and right-click the icon. Select Properties from the context menu and
look for an Unblock button on the Properties dialog that will appear. If
the button is visible, click it, then restart MetaTrader.
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