Autochartlist is a platform that generates trading signals, delivers 1000+ actionable trade opportunities per month in financial markets in real-time. This tool is a market scanner and has the ability to provide statistically significant market movements, as well as identifying important price levels. So, we created one case study using the MT4 Autochartist plugin.
Autochartist accuracy is between 60% and 80% but generally, trades have low profit factor. Based on a case study, in the last 18 months (1.1.2019 till 1. June 2020) accuracy was 65% for major forex pairs and the profit factor was 1.01. Using Autochartlist MT4 plugin after 18 months of trading, the trading balance almost didn’t change.
Accuracy is not so important in trading.
If I buy 1 mini lot of EURUSD at 1.3, stop loss 1.295, and target 1.3025, I risk $50 and my target is $25.
I can trade 999 times risking $50 and trying to achieve $25, accuracy can be 66% but in the end, I will have $0 profit.
333 times I will lose $50 = -$16.650
666 times I will win $25 = +$16.650
Autochartist accuracy case study description
In this study, we used major forex pairs: EURUSD, GBPUSD, AUDUSD, NZDUSD, USDJPY, USDCAD, EURCHF, EURJPY, GBPJPY.
We made trades using 1 micro lot.
Tool: Autochartist MT4 plugin (our broker offers free tool).
We traded 1 hour and above (higher time frames) to avoid overtrading.
We traded only signals that had the probability of success at least 75%.
Why Autochartlist is important
Autochart list is an excellent tool for analysis and pattern recognition because it can recognize:
- Channels (up and down)
- Triangles (ascending, descending, and symmetrical)
- Double top and Double bottom
- Triple top and Triple bottom
- Head and Shoulders (plus inverse Head and Shoulders)
- Wedges (rising and falling – continuation and reversal)
- ABCD pattern
- Fibonacci retracements and extensions patterns
- Gartley (harmonic pattern)
- Butterfly (harmonic pattern)
However, this tool is no “Holy Grail” in trading and traders can not achieve high expectation profits. But this tool is good for analysis, and to “catch” interesting setups.