Automated trade signals has been on traders minds for a long time, and has become more of a topic after the introduction of out-of-the-box AI tools. I previously used Oanda as my broker, and they had this deal with Autochartist who provided automated trade signals. I never acted on the signals, the few I looked at didn’t really play out as indicated. However, I decided to test the signals using paper trading. It is a small sample only 38 completed trades, here are the results.
I acted on as many signals as I could, all trades done at market price, implementing a 2:1 risk-reward. I categorized into FX, Index and Commodities. Win/Loss ratio should be over 1 and Profit/Loss ratio should be over 2. As you can see, the overall ratios are above minimum, whereas for the categories only Index delivers above minimum. All categories would be profitable trades.
I understand this is a very small sample, I just wanted some more flesh to the bone as to how well the signals are actually working. I have not dived into how Autochartist have built their algos, and I will keep on testing their signals.
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Autochartist is only good for pullbacks as it’s breaking resistance or support indicator basically
You might be right, I am starting to find the signals work best in trending markets. When things get a bit rough, the hit rate gets worse. I have only added 7 trades since last, and the overall is down to 1.5 (W/L Ratio) and 2.55 (P/L Ratio). For Commodities both ratios are now below target. All trades combined are still profitable, but this little test is of course in no way a go-to strategy. There are probably lots of sites online where this has been tested way more scientifically, but it is an interesting excercise as I predominantly use tech analysis in my trading.
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Yeah . All you do is set it to 80 percent probability and go against it
Sounds like you have some experience with services like this? I used to be all fundamentals, then went all technical for a while, but now are kind of in the middle. Figured if a signal service can provide above 2 P/L ratio I could put some money into that and then focus on my own analysis.
Yeah I’ve tried everything. The best indicator system I created which I’m happy to share because it’s not 100 percent is applying a 20 sma and 150 ema to ichimoku indicator . You’ll get around 60 to 70 percent outta that