Using CCI to Make a Living Off Forex - page 12
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For sometime I had tried to implement a proper Woodies CCI system under Metatrader 4 and soon realized that it was a b!tch to get right. I eventually found and bought a very good 99.999% replica of the Woodies CCI system. (From KardamonFC
(Remember to trade Woodies properly, you need to remove time from your charts and hence the need to implement Range Bars, another indicator that I bought from The Forex Strategy) (Both purchases were the best thing I had ever done)
Anyway after much learning, I soon realized that Old Woodie was smoking some huge crack pipe and that of his 8 patterns only 3 are truly reliable. The other 5 you need to squint your eyes whilst jumping on one foot and rubbing your head and stomach. (Also I am convinced mr Woodie, did this on purpose as one his schemes to make people attend his overly priced seminars, to better understand his other 5 crazy patterns)
What this journey taught me was the true appreciation for the CCI indicator. I learnt all there was to about this indicator, both its pros and cons.
Now when James brought this strategy out, which I consider an enhancement to the Woodies System it just felt right to take a look. (For a long time a lot a people where suggesting to Ken Wood to use the newer CCI values of 8 and 14, but old stubborn would not hear of it. Discovering this post from James was the best thing I could have ever done. The natural migration from using Woodies to this was incredible.)
Thank you once again James and have a merry Christmas.
Cheers
Codex
Hi DayTraderBiH,
Yes I did do some trades yesterday. I traded only the EURUSD and GPBUSD. (My trading timezone is GMT +2 so I am lucky enough to trade both the end of the Asian session, the London Open and the New York Open)
Made a total of 120 pips (would have been more but I was playing a PC Game whilst babysitting my 3 little girls). (Also it did take litterally my full 8 hour trading session to squeeze these out... the market is very very quite now as you know)
In the new year I will start posting some of my trading screens. (Do you guys use an indicator to take snap shots or just some standard screen grabber?)
This strategy is well worth the effort it learning who the cci indicator moves in different market conditions and timeframes will definitely change your trading around (it did for me).
Cheers
Codex
Hello Codex
Hi DayTraderBiH,
Yes I did do some trades yesterday. I traded only the EURUSD and GPBUSD. (My trading timezone is GMT +2 so I am lucky enough to trade both the end of the Asian session, the London Open and the New York Open)
Made a total of 120 pips (would have been more but I was playing a PC Game whilst babysitting my 3 little girls). (Also it did take litterally my full 8 hour trading session to squeeze these out... the market is very very quite now as you know)
In the new year I will start posting some of my trading screens. (Do you guys use an indicator to take snap shots or just some standard screen grabber?)
This strategy is well worth the effort it learning who the cci indicator moves in different market conditions and timeframes will definitely change your trading around (it did for me).
Cheers
CodexHello codex is there anywhere we could chat. Cos I have a side project born out of this same system I wanted to discuss with you.
My reason is that I have an idea but people in forums like this have an attitude of killing a project before its even completed and from what I have seen, encouragements tends to come from straight forward people like you.
I know you will lend me ur ears and alert me to some unforeseen outcomes be cause u have a better understanding with this system.
Finally I would also want to run the tests with you cos I love ur friendly approach to research.
Thanks again for everything,
Deedee
Nigeria.
The Swiss Army EA is to only manage your trades. I use it to set my stoploss automatically, and trail it. And if my trade brings my account size down 5% to close that trade. It doesnt open trades, it just closes them if a trade hits your trail stop.
Yeah, it is actually a very useful piece of code. Very fast, and very accurate.
Hello everyone. I managed to sneak onto the Internet on vacation. The non lag ma doesnt repaint 8 bars. The color of the ma is fine after 1 or 2 bars. But the repainting doesn't matter because you are only trading had use strength across certain pairs. You are not trading one pair at a time, which would make repainting a problem since you are not sure of trend strength. This strategy filters trend strength and false moves through pairs instead of indicators. This is why non lag ma repaint is not important. I an working on a way to make the confirmation from for more concrete. I will update the strategy when it is perfect. Happy new years everyone
Thanks codex for your support. Its a shame so many traders try to skip out on true trading by trying to find that magic indicator without understanding how the market works at any level. This strategy works because it is more based on a reliable form of trend strength that price action strategies can not confirm. Once I update the strategy hopefully it will be more accessible to those traders that have Been brainwashed by those forex magic indicator ads.
A profile i cooked today
Hello everyone. I managed to sneak onto the Internet on vacation. The non lag ma doesnt repaint 8 bars. The color of the ma is fine after 1 or 2 bars. But the repainting doesn't matter because you are only trading had use strength across certain pairs. You are not trading one pair at a time, which would make repainting a problem since you are not sure of trend strength. This strategy filters trend strength and false moves through pairs instead of indicators. This is why non lag ma repaint is not important. I an working on a way to make the confirmation from for more concrete. I will update the strategy when it is perfect. Happy new years everyone
Hello james the Giant and ma good friend codex,
From what I have read so far, this trading system works best when all correlated pairs agree in same direction and non lag ma agrees so I cooked up a total profile for the trading system in the image below.
Now am writing this post for your (james and codex) confirmation and approval. The idea is to place trades when the colours of the first four pairs of the agree and the last pair usd/chf is giving an opposite signal.
We also have in the pic a smaller window to confirm exits with the non lag ma added by you(codex) to help us on exits. Please I need your advise on this lay out.
would also want to upload the profile.
Thanks a lot and please admin the speed at which you screen images is too slow but all the same thaks and keep up the good work
Looks very interesting. Maybe codex can test your project out since I did not bring my laptop with mt4 on vacation with me. I can't wait to see it first hand though. As for the layout, how does it work? Would it be like when all timeframes align, that the blue box changes color? And how would the non lag ma box for exits work?
Thanks again
I have added into the trading strategy a nice update that I think is a good improvement. I have added a double RSI of 5 and 13 that serve as a good confirmation. It can also be used as an exit. Some can replace the non lag ma with the double RSI if they want. I want to keep the strategy simple, and I feel that with this addition, simplicity is still the core of this strategy.
It works by placing both RSI periods on one window. When the fastrsi crosses the slow, make a buy. When the opposite happens sell. This double RSI update is convenient, since the nonlag ma repaints 1 or2 bars, making the entries not as concrete as they can and should be.
Good Trade Picker
This system gives great trade signals with high confidence interval (if there is such a thing in forex) but I have struggled some with the exits, especially using a signal like lagMa that might repaint on me. Oh ya, you should have exited 5 bars ago. LOL
I have tested 5 exit strategies trading EU 0.1 Lot for 1 year on H4. It is basically using the entry as suggested by JTG which is the same in all my tests. The only thing I changed was the exit. Here are the returns and the exit used.
I apologize also in that the crude EA I put together only did buy trades. Just wanted to get some feedback before adding the sell module.
NonLagMA7 (repaints at 8 bars?) + 295
NonLagDot (16 period)(repaints at 3 bars) +304
RVI Cross (Relative Virgor)(4 period) +862
CCI 10 cross below 0 +717
Stochastic cross down 5/5/2 (Not a big fan of this but it worked) +1006
RSI 4 cross below 50 +641
Like the idea though of an RSI cross. Will have to look at that.
Basically what I saw in all these test was that the repainting indicators jumped out too soon or stayed in too long and just weren't reliable for exits.
The hard indicators like CCI, RVI, RSI and Stochastics all kept me in the trades longer when I should be and out when I should be as well. I have not been a big fan of stochastics but in this case it did very well. I smoothed it and took a lot of the noise out which seemed to make it more reliable. Staying with the CCI theme, I was glad that at least the CCI10 did ok as well.
Merry Christmas to all !