Autochartist is a technical trading software that is one of the most popular tools available. This is partly due to the reason that Autochartist software is automatically installed with some MT4 and MT5 trading platforms.
At the very core, Autochartist is a market scanning tool and claims to save traders a lot of time when scanning the markets for potential trade set ups. The Autochartist software is aimed to enable traders to make a trading decision and at a faster pace.
The software is said to be servicing over 50 online forex brokers and boasts of an online community of more than 50,000 traders in over 80 countries across the globe.
The Autochartist platform is estimated to have sent over 400,000 potential trade opportunities each month.
Clearly, this third party tool has positioned itself as the leading chart pattern recognition software for brokers and traders alike.
One of the reasons for Autochartist’s popularity is that many online forex brokers use this third-party tool and market it as a value added benefit for traders. As a result, many traders have at some point used the Autochartist trading platform. The platform offers multiple trading opportunities by identifying chart patterns, Fibonacci patterns as well as key support and resistance levels.
The main benefit with Autochartist is that it can be directly plugged into the MT4 or the MT5 trading platform. Thus, signals are generated directly on the trading platform. This makes it a lot more convenient for traders to trade based off the signals directly.
If you’re an experienced trader, it is possible to identify patterns with no help from software such as Autochartist, but it can be of help if you’re only new in the game or you don’t have time to evaluate the charts yourself.
What is Autochartist?
Autochartist is an easy to use market scanning tool that plugs in with your MT4 or MT5 trading platform which highlights trading opportunities as they come by. The Autochartist platform allows traders to decide what currencies to trade based on the potential signals that are formed.
The signals can be generated on any time frame of interest and thus allows for both intraday traders and swing traders as well. The number of signals generated on the instruments depends on the instruments that are available from your forex broker.
The signals are derived from widely used technical chart patterns as well as wave theory and Elliott wave theory. Thus, the Autochartist signals are not generated based out of some proprietary trading system. The signals are visually displayed on the price chart directly and allows traders to further conduct their own analysis before evaluating whether to trade an Autochartist signal or not.
The main selling point for Autochartist is that the third-party application integrates directly with the MT4 or MT5 trading platform via plug-in that links directly to the services. You do not have to pay to use the Autochartist services as these come directly from your broker.
Here is a summary of the key features from the Autochartist platform
- Chart patterns: The Autochartist platform can identify various patterns that include chart patterns, Fibonacci retracement levels and support and resistance levels which are easy to use.
- The third-party application monitors the markets 24 hours a day through the week
- Autochartist presents all opportunities in the markets regardless of what chart or instrument that you are currently viewing
- Autochartist saves a lot of time for traders as it scans all the instruments and all the timeframes automatically for you.
- The application is supported by multi-language and you also get email market reports and alerts
- Autochartist can be installed on the MT4 or MT5 trading terminal and scans the instruments available from your broker
- There is a search functionality and filter options which allows users to create a custom watch list as well
- Autochartist offers volatility analysis as a way to get more meaningful insights into the instruments that are being monitored
There is a lot of educative and research material that is offered by the Autochartist platform with the main goal of creating time saving benefits for the traders. Users who use the Autochartist platform get access to proprietary articles, videos, ebooks and webinars that are hosted by Autochartist.
Overall, the platform aims to create an all-round trading service for traders which covers all aspects from educating the trader to giving you timely reports and offering actionable trading ideas.
The Autochartist application is fully customizable. This means that you can set the application to only scan the instruments of your choice and you can also set your preferred language. Based on the instruments set up in your watchlist, Autochartist constantly monitors these instruments in real time.
The application is aimed to work continuously and thus gives the trader more time to make informed decisions about the market rather than having you to do all the work. No wonder that most forex brokers who offer the Autochartist platform market this as a trader’s toolkit.
There is also the built-in economic calendar that is available from Autochartist. The economic calendar allows traders to be alert to any potential economic news releases. On some high impact news events, there is the possibility to also conduct a detail analysis to view the Autochartist analysis on the news event itself.
There are also some controversies surrounding the ownership of the application itself. However, looking at the website, it is clearly mentioned that the company has offices in South Africa and in Cyprus.
The website also claims that the company is headed by three individuals, Ilan Azbel, Rob Horton and Kobus Steenekamp. Each of the individuals have links to their respective social media websites.
On the Facebook page, there are links to the various offline events that the Autochartist team has attended and this brings some amount of clarity on the operations of the business. A majority of the Autochartist business is targeted to forex brokerages.
There are also quite a few complaints about a non-existent customer support or that support queries are very delayed.
The Autochartist team also recent acquired a few other online businesses which include VerifyMyTrade.com which is used by traders to validate their trading history and returns and Delkos.com which is a news aggregation website.
How does the Autochartist MT4 plugin work?
The Autochartist application integrates with the MT4 trading platform. Usually, you do not have to do anything as the application is shipped automatically with the MT4 platform from your broker.
However, you can install Autochartist by yourself directly. The installation requires you to download a plugin and double click the installation which will allow you select the language and install the plugin into the MT4 file.
A similar procedure is available for the MT5 trading platform as well. The only additional step is that you need to add the Autochartist URL into your Allow for WebRequest for listed URL field in the EA options configuration window.
Once the installation is complete, under the Expert Advisor section you will find the Autochartist EA installed.
You can then drag and drop this onto your chart and the plugin gets to work automatically.
The chart below shows how the plugin looks like once installed onto your charts.
As you can see above, the Autochartist plugin starts to plot the chart patterns on the interface as soon as it is enabled. You will also see other details such as the key support and resistance levels and any potential set ups that are forming in the markets.
To receive the automatic subscriptions from Autochartist you only have to enter your email address. You can then select the type of reports that you selected.
You can login to enable the signals from Autochartist either directly by entering your login and password to the Autochartist account or just enter your broker login and password if the plugin is automatically shipped from your forex broker.
Autochartist subscription - Pricing
The plugin is available free of cost when offered by your forex broker. At the time of writing there are over 50 forex brokers that automatically offer the Autochartist platform.
However, you can also subscribe to the service independently. In such cases, the cost is about $49.95 a month. The pricing looks to be somewhat high but considering the amount of services offered, it is quite competitive.
The fact that using such a tool can make your trading a lot more comfortable, cannot be argued upon. Depending on your trading volumes, there is a good chance that you can expect the return on investment quite quickly. But this would mean that you will have to be an active trader or trade with larger volumes.
When you opt for a three month or a six month subscription the pricing is a little bit lower.
Autochartist accuracy - How well do the signals work?
When it comes to online reviews of Autochartist and the basic question on how accurate Autochartist signals are, there are quite a bit of mixed responses. In fact, on popular forums such as Forexpeacearmy the Autochartist application ranks a 2.5 out of 5 ratings.
This clearly shows that Autochartist is by no means an accurate price forecasting or a predicting tool.
However, there are two sides to the story. Traders who think that they can build consistent income in forex trading by depending on third-party tools and features aren’t really traders. There is a good chance that such approach will lead to losses in forex trading sooner than later.
As a third party tool, Autochartist does exactly that. It provides crutches for traders who believe that they are marathon runners, to draw an analogy. Therefore, the idea of questioning the accuracy of the trading signals from Autochartist is baseless.
Another factor worth mentioning is that anyone who cares to spend a little time doing their homework on the Autochartist website will clearly see that the product is promoted to forex brokers. The product’s USP is that it creates engagement and is targeted toward trader acquisition and retention.
Nowhere on the website does Autochartist claim to be a trading signals service that will make you consistent returns.
Last but not the least, it is evident that most of the trading signals are based off chart patterns and other technical analysis are require some subjectivity. What might look like an ascending wedge pattern for one trader might not look the same for another trader.
The Autochartist platform makes use of automated software to draw the trend lines and to identify the chart patterns. Thus, trying to bring an automated solution for an analysis that requires subjectivity is often prone to false signals.
One of the main drawbacks with using the Autochartist platform is that it can influence your bias. If for example you are bullish on a currency pair but the Autochartist signals that the outlook is bearish, you could end up questioning yourself on the validity of your analysis.
This can become a major drawback for you to evolve as a trader. Depending on third party opinions and analysis is certainly not the way that you can expect to become a successful trader.
Autochartist Review – Conclusion
In conclusion, the Autochartist service is a B2B service that is targeted to forex brokers as a tool that they can use to attract and retain traders. Given that most traders lose money, it is not surprising to note that traders end up depending on the Autochartist signals rather than trade by themselves.
The service offers a lot of information, but sometimes there can be information overload. For a normal trader who would focus on one or two currency pairs at max, the Autochartist program is a distraction as it can tempt you into taking undue risk.
Overall, while the platform and the concept is quite appealing, from a trading perspective it is ideal that traders not use or depend on the Autochartist services, especially if you want to truly grow as a trader and develop your own forex trading skills.