autochartist generates three kindly of patterns, such as Chart patterns, Breakout, and Approach. The performance is not the same on FOREX and Index trade items. Let's study how to apply it well and to achieve high win rate in a low risk. A higher return rate is expected.

1. Shih-Hsin Chen
Associate Professor
Cheng Shiu University
Maximize your return rate by
autochartist signal

2. Outline
Basics
Statistics
Buy and Sell Strategies
Settings of Entry, TP, SL, Duration
Conclusions

3. 1. Basics
Return rate = win
rate * (profit/loss
ratio +1)
1
Return rate >= 1,
you make money
2
Otherwise, lose
money
3

4. 1. Basics
• Safe trading: Buy low and sell
high
• How to know the current
position is low or how?
• By pivot points!
• By this example, we won’t
buy at the current price.
• Instead, we should by the
Gold at S3 according to the
trend
Pivot points could refer the H4 or daily time frame
https://www.dailyfx.com/pivot-points

5. 1. Basics
autochartist generates
three kindly of patterns
Chart patterns
Breakout pattern
Approach pattern

6. 1 Basics
Three major patterns yield
different successful rate
Patterns has different
effectiveness on each trade item
Time frame is also an influenced
factor

7. 1. Basics: Chart Patterns

8. 1. Basics:
Chart
Patterns
Common mistake 1
Ascending triangle and Rising
wedge looks quite similar
Ascending triangle implies we
should go long
Rising wedge should go short!

9. 1. Basics:
Chart Patterns
Common mistake 2:
Descending triangle and Falling
Common mistake 3: Rectangle
and Triple bottom

10. 1. Basics:
Chart
Patterns
If a rising wedge pattern suggests a
long trade, we skip this signal
A basic Risk/Reward ratio is 1: 1
It means we set the take points (TP)
to be 100 and stop loss (SL) to be 100
A better Risk/Reward ratio is above
1:1, said 1:1.3 or 1:2

11. 1. Basics
Goal: Win rate 75% and Profit/Loss ratio
is 1.2
Method 1: We select the patterns with
at least 75% win rate
Method 2: Determine good entry, TP,
and SL points
Return rate: 0.75 * (1 + 1.2) = 1.65

12. 2.1 Statistics Performance in year 2016

13. 2.1 Statistics Performance in year 2016

14. 2.2 Statistic
Performance
2020/10

15. 2.2.1 FOREX Chart Pattern

16. 2.2.2 FOREX Breakouts

17. 2.2.3 FOREX Approach
Time frame is insensitive!

18. 2.3.1 Index Chart Pattern

19. 2.3.2 Index Breakouts

20. 2.3.3 Index Approach

21. 2.4 Filter signals on
Web App
• Don’t be panic about so many conditions
• We could select the patterns we need
• Edit button and then click the Advance settings

22. 3. Strategies:
Buy
Approach to Resistance
Breakout a Resistance
Channel up: Find the support at S1 to S3.
Ascending triangle
Falling Wedge
Rare: Inverse Head and Shoulders

23. 3. Strategies:
Sell
Approach to Support
Breakout the support
Rectangle
Channel down
Descending triangle
Rising wedge
Rare: Head and shoulders

24. 4. Settings of
Entry, TP, SL,
and Duration
Entry, TP, SL, and Duration directly
influence win rate and return rate
Each autochartist signal provides above
information
The original signal should yield at least
1:1 Risk/Reward ratio
Adjust the Entry to the Support or
Resistant level given by pivot points for
buy and sell order, respectively

25. 4. Settings of Entry, TP, SL, and Duration
• The charts for Forex,
commodities, stocks, and so
on provides detail pivots on
dailyfx
• Pivot points could refer the
H4 or daily time frame
• https://www.dailyfx.com/piv
ot-points

26. 4. Settings of
Entry, TP, SL,
and Duration
If the Risk/Reward ratio is very
good, we could reduce the TP to in
sure we take the profit
I currently select 1:1.3 Risk/Reward
ratio
Duration: A pattern is only useful in
a period of time. We shall set the
expiration time of each pending
order

27. 5. Conclusions
Autochartist provides useful signals
Approach and Breakout patterns are consistent for
FOREX and Index
75% win rate is achievable
Entry point, TP, and SL could refer to the pivot
points may result in better Risk/Reward ratio
With adequate Profit/Loss ratio 1.2, our return
rate is 1.65