cant figure out how to get sequencer or arpeggiator to work

[Odregos]

I just bought a keystep and hooked it up to my gear.  It works fine as a controller.  I can play the keystep keys and hear sounds out of each keyboard.  I simply cannot get the sequencer or arpeggiator to make any noise .  I dont know if it is even recording patterns.
I have tried to sync to my gear with midi, usb and clock.  no luck.  I have connected it to cubase pro 10 and still it will only work as a keyboard - great for individual midi notes but no arpeggiator or sequencer.  I have tried all midi channels.

Any idea what I am doing wrong?

thanks

[Odregos]

I just changed the dip switches on the back to "midi".  At least now I am getting sound and am able to play a sequence and arpeggios.  Now onto cubase integration.