【Basis】DSATEA fully automatic point trading's disadvantages and advantages! Also notes
Hello! This is Chiryuu!
In this article, I will clearly introduce Tian and Chi's DSATEA fully automated point trading (DSATEA Fully Auto Point Trading) including the disadvantages, advantages, and points to note.
- Disadvantages
- Advantages
- Points to note
in an easy-to-understand way!
【Basis】Disadvantages of Fully Auto Point Trading
Disadvantage ①
The disadvantage of fully automated point trading is
that it may enter even when the location of the points is wrong.
There is also a rare pattern where the candlestick crosses the band after temporarily exceeding FUTUREBAND and returning.
For example, if you enter at a large candlestick as shown in the image, your profit target will drop significantly.
If this happens while you are asleep, you won’t notice it.
Cases like this can occur when major economic indicators move the market, so when there are large indicators, either accept the loss as a cost or turn off the EA for the target currency.
Disadvantage ②
Hard to cut losses
As a standard method, for point trading you usually set risk-reward to 1:1.
However, in fully auto mode, it is surprisinglySL huntingis somewhat common.
As shown in the image, there are patterns where after an SL hunting, the profit point appears.
Opinions differ among Tian and Chi users, but some people deepen the stop-loss and wait for the profit point to appear.
Also, some people set a 100 pips stop-loss as a precaution against surprises.
In full auto mode, you need to devise ways such as
- if the filter is strict, risk-reward 1:1
- if the filter is loose, 2:1
to manage trades effectively.
For example, I use a 4-hour chart
・Oscillator TF3・LV2
・Oscillator DXLime
and a 15-minute chart
・Histogram current
as well…
and in such a setup, I feel that risk 1:5 to reward 1 is good.
Disadvantage ③
Long time to profit
Even on a 15-minute chart, the time to hold a position varies,up to 18 hoursin some cases.
From testing,on average about 3–5 hoursand in faster cases it can be 30 minutes to 1 hour to profit.
On the 15-minute chart, you perform environment recognition on higher timeframes, especially the 4-hour chart, but holding positions too long can cause the trend to change.
Whether it is a disadvantage to hold unrealized gains or losses for a long time is unclear, but some people may dislike it.
【Basis】Advantages of Fully Auto Point Trading
Advantage①
Can exit at break-even or near break-even even in adverse moves
The market moves in an N-shapeso even if the price moves adverselyyou still have many chances for the profit point to appear again.
Small losses or small profits near break-even
If there are 7–8 entries in a day, there will be one or two times when you can close at small loss or small profit.
Advantage②
Can capture big profits in strong trends
If buying on dips or selling on rallies works well and you ride a large trend,there are scenes where you can gain a lotin profits.
Advantage③
Tian and Chi point trading is simply amazing
Abu-san X Post
In my view, a particularly important indicator set includes ADX, ATR, and MOMENTUM—10 indicators (now 14) consolidated into one, grouped by purpose via programming, using the same period or multiples thereof.
Sorry for the unclear explanation, but this is what the actual logic looks like when verbalized.
This is my personal view: Tian and Chi indicators are primarily for trading points.
Displaying points on Tian and Chi is the main method.
In other words, I feel that Tian and Chi point indicators are a culmination of Abu-san’s work.
Therefore, trading with Tian and Chi points shows a high level of advantage in itself.
For Tian and Chi points, please also refer to the following articles.
Table of contents: Tian and Chi indicators, Tian and Chi points
【Basis】Notes for Fully Auto Point Trading
Notes include:
- There are opportunities for SL hunting
- Stop-loss settings are difficult
- If possible, check at least once after entering
Tian and Chi points can appear at strange timings in volatile markets or around indicators release times.
If possible, it is recommended to check once after entering.
If stop-loss settings feel difficult,
- 2 filters = risk-reward 2:1
- 3 filters = risk-reward 1.5:1
- 4 or more filters = risk-reward 1:1
so deciding in your own way makes trade management easier, which is recommended.