A Step-By-Step Guide To Autochartist
The market-scanning capabilities of Autochartist can provide forex traders with a tremendous advantage. This pattern recognition tool, which is integrated with the Phillip MetaTrader 5, will do a large part of your work for you.
Autochartist will keep track of your market watchlist and highlight multiple trading opportunities. If you learn to use Autochartist, it is quite possible that you will see a marked improvement in your trading results.
Register for a free MT5 demo account and start familiarising yourself with Autochartist now.
Here are brief guidelines on:
⇨ Installation of Autochartist.
⇨ The best way to use Autochartist.
⇨ Using the Risk Calculator.
Remember that your system should be compatible. You need Microsoft Windows XP SP2 or Windows Vista.
If you want to use the mobile app, you can Download MetaTrader 5 from Google Playstore or the Apple app store.
After opening the app, you have to click on “Login to your existing account.”
Now, select “Phillip Futures Demo” and log in with the ID and password that you have been provided within the email you received when you registered for Phillip MetaTrader 5.
The next step is to download the Autochartist plugin. Here’s the link.
⇨ Run the Windows installer that you have downloaded.
⇨ You will see the Autochartist MetaTrader Expert Advisor window.
⇨ Now, follow the instructions that appear on your screen. Click next, and then accept the license agreement.
⇨ Select the MetaTrader platform on which you want to install Autochartist.
⇨ Now all you have to do is to click “install.” This will complete the process.
When you open MetaTrader, click “save.” This will result in Autochartist loading onto MetaTrader.
Don’t have a MT5 account to use Autochartist? Get it here.
You can begin using Autochartist right away by restarting MetaTrader.
Autochartist will be visible in the Navigator window under Expert Advisor. To use Autochartist, you have to drag it to a chart window. When you do this, Autochartist will retrieve the relevant data. After this happens, the main window of the Advisor will appear on the bottom left corner of your screen.
There are several features of Autochartist that you should understand:
Feature 1 – you can select a minimum probability value. If you choose, say, 65%, the Autochartist patterns will be filtered to display those patterns that have a total probability of 65% or more.
Feature 2 – this provides you with a settings button. Click on this, and a new window will appear on your screen. You can enter your email address and specify:
- The reports you wish to receive.
- The language in which you want the reports.
- The session of your choice.
You will receive a daily email that will help you to improve your trading strategy. It is possible to subscribe for several reports that pertain to different sessions.
Feature 3 – this is the “Filter and information” feature. If you select this, another window will open which will allow you to choose the types of patterns that you can see.
This feature allows you to view historical patterns and provides you with information about the movement of the instrument.
If you click on the Performance Statistics window, you will see a URL. Copy this into a new web browser, and you will be able to see the performance statistics for your broker.
Using the risk calculator
One of the most significant advantages of forex trading is that it is possible to make massive profits without committing much of your capital. Traders get this benefit because of their ability to enter into leveraged trades.
A forex trader would usually put up only 10% or 5% or even as little as 2% of a trade’s value. The remaining sum would be arranged by the broker. If you are contributing only 2% of the trade amount, you are effectively enjoying leverage of 50 times on your capital. This can result in significantly enhancing the level of your profits.
Of course, this strategy carries risks as well. If the trade moves against you, the losses can be equally magnified.
That’s the constant dilemma that forex traders face. If the level of risk that you take is low, your profits will be low too. Take on too much risk, and you could incur huge losses.
What is the way out? How much risk should you be willing to take?
This is where Autochartist’s risk calculator comes in.
Identifying the Autochartist Risk Calculator on your screen
To use the Risk Calculator, drag it onto your chart window. You can use it by taking the following steps:
1. Tick the box on the top of the Risk Calculator control panel. This will enable Expected Trading Ranges. (Refer to 1 on the image below)
Note: The Expected Trading Ranges are calculated on the basis of the prices that were seen in the last six months.
2. Now you can select your entry level. This can be done by typing in the level. Alternately, you could move the entry level line to the desired point. (Refer to 2 on the image below.)
3. Similarly, set your stop-loss level. (Refer to 3 on the image below.)
4. The screen will show the number of pips difference between the entry price and the stop-loss price. (Refer to 4 below.)
5. This indicates the amount of money that you are willing to risk on this trade. (Refer to 5 below.)
Note: You have three options at this stage.
Option1 – you can enter a “Risk Cash Amount” (the sum that you are willing to risk on this trade).
Option 2 – set a Risk % of Equity (if you use this option the dollar risk amount will change as you make winning or losing trades)
Option 3 – set a Risk % of Balance
6. The Risk Calculator will tell you the position size that you need to take to risk the sum indicated by the stop less level that you have specified. (Refer to 6 below.)
Autochartist Risk Calculator – sample transaction
The bottom line
Autochartist can’t guarantee the success of your trading activity. But it can give you an advantage. It’s pattern recognition abilities, and Risk Calculator can help you to trade in a systematic and disciplined manner.
Make the time to learn how Autochartist works. If you can do that, it’s likely that you will see an improvement in your trading results.