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Another very interesting System

StaticX

Member
Hey Guys,

It's like Christmas over at Forex-TSD at the moment. There is another very good strategy that only uses 2 CCI's. And if you guys have not guessed it yet, I have an addiction for this indicator :)

This is a 4 hour strategy. Personally I never really like 4 hour strategies, but after doing a simulation test last night using the FML trading simulator for MT4 (FML makes use of existing data in your MT4 history, so it's 100% real. You just cannot use this simulator to test EA's) I was quite literally blown off my seat at it's raw simplistic nature.

Code:
www.forex-tsd.com/manual-trading-systems/28215-using-cci-make-living-off-forex.html


For those of you that cannot get access here is the first post.
I have also attached his template (which is in the zip file) and the Tor indicator that he talks about. I have also attached a copy of the FML Trading simulator for anyone interested.

Updated: 21 December 2010

"This strategy takes into account multi timeframes, USD strength, and overbought and undersold levels to determine relatively safe trades. Goal was to make this strategy an all in one package that allows you to know why you are making a sell from a peak and a buy from the bottom, and how long the trend can safely last, allowing for good entries, and good exits. I really should have just names this strategy "No surprises CCI Strat"

I have used CCI alone to make a living off forex the past few years. I have felt very comfortable with CCI from when I first placed it on my charts and I know how CCI reacts to extreme levels and to zero line rejects.

I am sharing this strategy because it is simple, yet takes alot of experience to manage. Yet it might catapult some new trader a few years ahead and teach him 10 or 12 things.

This CCI strategy is based on the overbought level and on the zero line.

There are two ways to trade this strategy:
Aggressive way to trade: Go long when CCI 14 exits -100 and CCI 8 exits -100 and Non Lag MA 8 changes color.
(feel free to optimize Non lag Ma period)

Go short when the opposite happens.

Or open a trade when both CCI periods bounce off or penetrate the zero level around the same time.
Close trade when opposite signal happens.

Normal way to trade it (between conservative and aggressive): Go long when CCI 14 exits -100, and CCI 8 exits -100 and goes through zero into positive territory.

go short when opposite happens, and close trade when opposite signal appears.


Or open a trade when both CCI periods bounce off or penetrate the zero level around the same time.

(I personally trade the aggressive way since I like it simple and with less guess work and indicators)

Add stop Loss of 55 Pips
Trail Stop by 55 Pips
Break Even in 55 pips

Trade on 4 HR and above for best results.

This strategy works because it is a great mix of oscillators, which spot out tops and bottoms of ranging markets, and the Non Lag MA setting of 8 helps you stay in the trend when there is one without having the oscillator telling you to sell in an uptrend and buy in a downtrend since oscillators are great for tearing apart trends.

Also I trade with ToR, which is an indicator that stands for Trending or Ranging. ToR is a multi timeframe CCI indicator that shows you two CCI levels across 15m-daily timeframe. Only make a trade when USD is down or up on most timeframes, and consistent with related pairs. Such as, I would only make a safe trade, when GU,EU,NU, and AU are rising and in positive area across the timeframes, then I will check Usd/Chf and make sure it is down across the timeframes. If both are opposite, and signals are consistent across the pairs, then a trend is in way. This is how I implement multi timeframes, Usd Trend strength, trending and ranging areas in the market. ToR is great for spotting trends before they happen since CCI is a sensitive indicator.

Pairs I trade are GU, EU, AU, NZD/USD and USD/CHF
When a setup occurs, trade all except USD/CHF in the same direction at once, and USD/CHF in the opposite direction. This is because some pairs will go further than others.

----------
Keep track of your trade with the Swiss Army EA. Also it is useful because it shows your trade gain in % to your account size. Such as right now I am up 7.26% in GU short.

PS: When you load the template, change the Swiss Army EA to manage your trade how you want it ( Trail stop, Equity Stop etc) and feel free to change the Non lag MA period to see what works best. I have it at 8.

AND DONT WAIT FOR CANDLE CLOSE TO MAKE A TRADE WHEN CCI 8 GIVES A TRADE SIGNAL
Enjoy!
What inspired me to trade this system can be summed up with the following words. There had to come a point when I had to stop playing with indicators and strategies, and finally start making money.

"Talent without discipline is like an octopus on roller skates. There's plenty of movement, but you never know if it's going to be forward, backwards, or sideways."
? H. Jackson Brown, Jr.
"

I have also attached all his indicators and latest template that he mentions on using. I have however also added 2 of my own indicators for the nonlagma which I find work MUCH better than the one he posted.

Cheers
StaticX
 

StaticX

Member
Hi guys,

Quite interesting that no one here has tried this strategy out :) Maybe give it a bash on demo account,
and if you do, please make sure that you are wearing a human size nappy, cause what follows over the next hours will probably cause the release of bodily fluids (and this is all I am saying for now $:)$ )

Do not fear the 4 hour chart like I did, embrace them. (And if you have been following the Woodies-CCI system, then picking this one up is even easier, just 2 patterns ZLR and HFE)

Cheers
StaticX
 

fscrp

Member
I entered my first trade this week looking at H4 and D1 and it was kinda scary :D

My risk:reward was only 1:2 and such a high SL made me a little panicky, even though I was only risking 3%, when price moved against me. I stuck with my plan and didn't exit at a loss and waited. The only little snag was a trade management EA I forgot about moved my stop and price retraced and took me out ... oops! I still banked some pips, so it wasn't all bad.

With that, I will certainly be looking at this in addition to your great Woodies thread because I don't have the time to watch the lower time frames all too often.

Thank you for all of the time you have put into sharing with everyone, it is immensely appreciated.
 

StaticX

Member
No worries fscrp,

If the least I can do is stop some poor new comer from waisting precious $$ on the next big "scam" I am more than willing to help out.

(I know I once spent a small fortune on every system under the sun, refusing to listen to the current forex veterans who were say that $99 do not work. At the end of the day, I guess we all have to go through this stubborn stage... spend fortunes only to discover what everyone was telling us.... stop paying for these $99 or $250 systems )

I sometimes feel that most forex traders (and me included!) want to make the $$ fast and 15 min charts feel like this is the way. Making an average of 10-50 pips off these charts per trade with an aggressive trading style of say maybe 4-10 times a day, that would roughly be (taking the max pips of 50 and max trades of 10) +- 500pips a day if you were lucky. What I am seeing now with 4 hour charts is that I can make between 500-1500 pips a day (roughly off 2 trades maybe 3 if it looks good, worst case 1 - if I am in 3 trades then my pipage count is off the charts 1500+ )

One of the reasons I never liked trading a 4 hour chart was the amount of breathing room required for a SL, often leading to an almost panic stricken drawdown. (And yes I go through this every day, often smoking myself into a complete frenzy. ps only started smoking again because of this little drawdown) I find that with is strategy you must follow the rules, suck the drawdown in, over come the fear, and you will find that the outcome is rather surprising :D

I have a renewed interest now in 4 hour charts. I have helped the author of this strategy already by providing a better exit strategy by using a nonlagMA with a period set to 8. What I am looking into know is applying some more of my woodies knowledge to this with regards to trend line breaks and maybe even some divergence. The author is very strict with regards to the amount of indicators he wants to have, so keeping it simple is his policy. He already makes a living of this strategy as it stands. (He too once looked at woodies and also has a love for the CCI indicator)

What I feel still needs tweaking are the exists. So am continually trying to see if we can improve on the exits a little. Knowledge of the Woodies patterns is not essential for this strategy, but it does help if you want to enhance it and make it even better. If it was not for my Woodies Journey I would never have come across this and actually understood it for what it really was... pure brilliance!!

What I am going to do is run one of my old almost dead accounts on a MyFxBook for everyone to have a look at. It will be quite a challenge at first as I think this account only has about $5 (I may just deposit $50 in it :)) So the trades will be 0.01 lots and hopefully the drawndown will not give me a margin call. I am taking this challenge on to prove to some friends of mine that I can revive this account to a healthy state. (They believe that it is impossibe to make anything of such a low figure, I would like to prove them wrong because I am stubborn like that :). I do not have a target time period for doing this. But what I want you guys to focus on is the amount of pips the trades make... ignore the money values as they will be too small to make a point.

Will keep you posted with my MyFxBook Details.

Cheers
StaticX
 

fscrp

Member
I have spent well over a year looking at a crazy number of threads, systems, charts and I settled on the following exit method: candle closes (say you are in a short order) on the upside of an 8 period LWMA using median price. I went with median price instead of candle close because using candle close seems to get you out too early. However, the weakness of it is when the trend has not been strong enough to really move price, but that is true of most exit methods.

Since I was up early this morning, I watched the Ultimate Day Trading System videos that techboy linked us to. Have you watched them yet? Any thoughts on pairing their "CCI method" of using the 50 level as another trade trigger?

My time for forex is coming to an end for today and I was really hoping to dig in to range bars, guess I'll be waking up early tomorrow if the wife's company Christmas party doesn't keep us out too late.
 

StaticX

Member
Not yet, but I have been meaning to watch them. They were short if I recall, around about 40 mins in totally.
 

manusingh

New member
Thank you for the great share staticX. I am very interested in learning more from you about trading from the CCI.
To make a living from it, you must be successful at it.
For example, you mentioned that you traded for years from the CCI before you found this method and don't really like 4h time frame.
Please teach us how you traded before this. I want to learn as much as I can from those that are successful already. Any help that you can give is greatly appreciated.
That, of course would be an 'adventurous' strategy whilst waiting for a cross of the center line would be conservative but safer trade.
Exit signals I don't bother with, I just get out when it threatens to turn against me.
 

stovedude

Active member
I've studied the CCI and have concluded that key levels are in multiples of 50 (+/-50,100,150,200,etc.). Your period setting dictates how high it will go, but usually not over 400. It can be a hard one to tame, but used correctly and reverently, it can be one of the best.
 

StaticX

Member
Hi Stovedude,

I can definitely concur that those levels are well worth plotting. Some of the strongest zero line rejects occur between the 0 and 50 level.

Manusingh, my old style of trading was very chaotic. For a long time I would bounce between the following 3 systems.
- Forex Rebellion, actually this strategy was the one that introduced me to the QQE indicator (which is a kind of RSI hybrid)
- Forex Stealth - Still a good system, but very dependent on a trending market. (Suggest only using this with good trending pairs)
- Then my own little CCI 14 with support and resistance lines. (15 min chart)

I had studied quite a spread of different courses and strategies. Ranging from the original Hector De Ville's course (before he brought out his new one), Nial Fuller's course, Babypips school, and then about every single article I could find on a number of forums.

Still the most success I had on a 15 min chart was by using my own little CCI 14 strategy and support and resistance lines. The strategy was very simple. If the CCI 14 cross from below to above the -100 line (or from above to below the +100) I would start looking for a trade. Before that I would have drawn my support and resistance lines in. Since I traded the 15 min chart, I would start drawing the SR lines starting from the Daily chart and working my way down to the 15M chart. Each timeframe would have it's set color coded SR lines. So that by the time I got down to the 15 min chart I could then see these lines for each of the higher timeframes. (In general I would pay attention to the 1 hour, 4 hour and Daily SR lines with Daily being the strongest and 1H being the lowest (note I did not say weakest)).

Then once I had a "potential" trade, I would quickly flip to Forex Rebellion and Stealth for an added confirmation...

This trade style was chaotic and very tiresome, as I would be montoring about 9 pairs, and each pair would have to have it's SR lines drawn and updated....
I eventually started seeing a pattern develop with the CCI indicator and that it always seemed to flow in a good cycle and that if I just stuck to watching this I could find higher probability trading setups. So I started diving deeper into the CCI indicator and discovering all it's little secrets, flaws and powers.

Eventually when I discovered my first Woodies-CCI indicator I gave it bash and eventually through it away. (that was before I knew that Woodies-CCI system only works properly with Range Bars)

Then recently you saw that I started looking into Range Bars and finally ended back up on Woodies-CCI system. My only issue with Woodies so far is that his other more obscure patterns are crazy difficult to identify correctly. He leaves far to much room for subjectivity. (but after learning about his unscrupulous business tactics, I am almost convinced that he did this on purpose to keep people coming to his "seminars", in the hope that "maybe this time I will get it...")

Finally I stumble onto this post at Forex-TSD, where the author "James the Giant" outlined his own successful CCI trading method. Since I already loved everything there was about the CCI indicator I looked into it and was subsequently blown away.

When I think back to most of the material I had come across on the web with forex, even Hector's goodies, they seemed to indicate that trading the longer term time frames is what most "amateur" traders should be doing. The term "amateur" is not used in a negative way but it is the general category for all full time traders who trade for a living at home. "Pro" traders are the big guys who work for the large corporates.

Anyway by moving back to the 4H charts I started seeing that my profits where increased tremendously, but so was the stress, as having to sit through those massive drawdowns can be quite a nightmare.

So right now I dropped all my other systems and have adopted this 4 hour CCI strategy as my primary trading strategy (which actually incorporates 2 of the Woodies-CCI patterns).

What am busy doing now is running simulation tests on previous months to see if I can refine the entry and exists points.

My secondary trading method is recent addition and is that other strategy I have posted on this forum (the 15 min one) I only trade this strategy if I am waiting for my main method to present some setups.

Cheers
StaticX
 

Tinojazz

Professional Trader Since 2007
VIP Member
I confirm this is good strategy, you can grab about 50-60 pips daily, sometimes you can keep more open position how can you catch all trend whatever CCI says to exit. P.S i am warning you that even on trading simulator candlles are mooving totaly uncorect then live. They finishing same like live but they are mooving only on one way, what is not same on live.
So that is very important to ask you : did you wait to enter on closed candlle or you are entering on everytick?
 

StaticX

Member
Hi Tinojazz,

You are 100% correct, I should have mentioned that earlier as well. The FML_Trade_Simulator that runs in MT4 is about 90-98% realistic when it comes to the candle movements. Closes and opens are however 100% correct.

I also use another trading simulator that I find very good. I bought it sometime ago (it is pretty expensive, but it is far more realisitc.)
Code:
[URL="http://www.forextester.com/"]Forex Tester 2[/URL]
I also bought a 6 months Standard Data service upgrade (this allows me to update my pairs with 1 minute data from either: Alpari UK / USA, FXDD, FXCM or Forexlite. Data is available right upto the previous trading day for this subscription)
But please guys do not rush and buy this, you can still learn a lot from just using the FML_Trade Simulator. (Forex Tester 2 does not allow you to apply any custom indicators that you use in MT4. It has it's own set of indis which are the default ones, like the CCI.) Make a deal with yourself, buy it if and only if you have 1 good trading session and can make the purchase price. This software will not help you if you are not making a consistent profit yet. It helps you refine your strategies and test some other methods out.)
If you are just wanting to use it trade and learn your SR areas, fibos, trendlines etc, then FML trading simulator is all you will need.

With regards to my entry Tino, I do not wait for the candle to close. I enter as soon as I see the CCI's cross their appropriate levels (this is of course on the live charts). A general guide is do not enter if it simply just touches one of the levels, it must break through nicely. (I made this mistake once... will never make it again)
Having used the CCI indicator for sometime now, you tend to get to know its movements, so lots of screen time with this indicator does help. The addition to this strategy is adding the nonlagma with a period set to either 8 or 5 (cannot quite decide which one works better, but I am swaying more towards 5 at the moment)

If anything we can help "James the Giant" enhance his strategy by looking for a better entry and exit confirmation, specifically to help new comers out. Having a "feeling" for the CCI indicator cannot be taught its just one of those things you pick up by continually using it. But I will endeavorer to see if there are not "easier" mechanisms we can apply to help others out.

Update:
I just saw that an affiliate of Forex Tester 2 called ForexSmartTools (they create a pretty good trade journal and trade calculator) is offering the Forex Tester 2 on a XMas bonus of only $99. Original price is $150. But I also see that Forex Tester 2 on the main site is having a special of $115 for the product but only for the next 12 days)

Code:
[URL="http://www.forexsmarttools.com/forex_tester_simulator.html"]Forex Smart Tools - Xmas Bonus for Forex Tester 2[/URL]

Cheers
StaticX
 

manusingh

New member
I also don't like the big TF , but have a open mind, so will check it out.

will be that the trades for the month of November, red are shorts and blue are longs, then I have , I think if I calculate right 4 looses and 3 winners.

the winner will be bigger then the looser, thats for sure.

 

fscrp

Member
Great chart manusingh. I know Woodie would strike me down for saying this, but the losses happened when going against the trend - he would strike me down for looking at price. Something else to consider (no prices on the chart) is how close price gets to a round number.
 

StaticX

Member
manusingh did you use a stop loss for your tests? At the moment this appears to one of the hot topics on James the Giant's thread. He's asking the thread followers for some suggestion, until then he has been using a SL of 50-59 pips...

But yes the Winning trades annihilate the losing trades. I have been looking at the 1H time frame today as well (this is the lowest timeframe he suggest using, he recommends the 4H and daily as they are the "safest and best")

Cheers
Codex
 

jyrik

Member
Hey StaticX
You said in forex tsd forum that you will posting a sreenshots of your trades. Could you please post your trading templates. Or they are the same what is already posted here? And please post few screenshots of your trades. Cant wait and thank you very much.
 

StaticX

Member
I definately will post some screens here. (But only in the new year, after today I am gonna take a little break)

My template is exactly the same as post 1. Nothing has changed or been tweaked.

I cannot wait for the new year to see how this strategy really shines. Even over this really quite holiday period (and I mean r-e-a-l-l-y quite, its like watching paint dry) this strategy has been proving to be really profitable :) (And with my Trade Manager applied, I have been able to free up a lot of time)

Cheers
StaticX
 

johncapa

Member
hey StaticX! Nice to see you here! I read your previous strategy and I'm curious to absorb the "Know-How" of this one too!

Just a question: you talk about a trad manager, obviously you don't use any automating EA, but it's interesting the concept around the "Trade Manager" you wrote. Could you write me a "TM" name you trust on?

Thanks in advance man, you got a curious and interesting mentality!

maybe it's the "swiss Army EA".. Perfect .. flu is driving me crazy .. it was obvious that it was the swiss army
 

bashida

New member
Hi StaticX,

Thank you so much for the time and effort you have invested in sharing this strategy. I am in the process of using it as my primary trading system.

Please kindly enlighten me why you have recommended the use of CCI 8 and CCI 14 as opposed to CCI 25 and CCI 50 used by James the Giant who thinks the latter pair work much better with the Non lag and catch larger moves excluding non-viable ones. Thank you.

With best regards and appreciation,
bashida
 

migmac

Member
I definately will post some screens here. (But only in the new year, after today I am gonna take a little break)

My template is exactly the same as post 1. Nothing has changed or been tweaked.

I cannot wait for the new year to see how this strategy really shines. Even over this really quite holiday period (and I mean r-e-a-l-l-y quite, its like watching paint dry) this strategy has been proving to be really profitable :) (And with my Trade Manager applied, I have been able to free up a lot of time)


Cheers
StaticX

StaticX ,

I am also curious to know what trade manager do you use, is it swiss Army EA ?

Do you also know any kind of alert that can be used?
 
Hi StaticX,

Thank you so much for the time and effort you have invested in sharing this strategy. I am in the process of using it as my primary trading system.

Please kindly enlighten me why you have recommended the use of CCI 8 and CCI 14 as opposed to CCI 25 and CCI 50 used by James the Giant who thinks the latter pair work much better with the Non lag and catch larger moves excluding non-viable ones. Thank you.

With best regards and appreciation,
bashida

Bashida
What is your Primary trading system?
Barry
 

kobe136

New member
This is an extremely appearing successful system. Is anybody still using it? If not, why not?

I have reviewed it and it seems good. However I am a fan of the CCI indicator. What am I missing. Since there are no recent postings to this thread? Thanks for any help.
 

Corona4X

New member
No worries fscrp,

I sometimes feel that most forex traders (and me included!) want to make the $$ fast and 15 min charts feel like this is the way. Making an average of 10-50 pips off these charts per trade with an aggressive trading style of say maybe 4-10 times a day, that would roughly be (taking the max pips of 50 and max trades of 10) +- 500pips a day if you were lucky. What I am seeing now with 4 hour charts is that I can make between 500-1500 pips a day (roughly off 2 trades maybe 3 if it looks good, worst case 1 - if I am in 3 trades then my pipage count is off the charts 1500+ )


StaticX

Seriously? 500 pips per day per trade? Not saying this isn't a valid strategy, but no need to over exaggerate.. No pair even moves that much in a single day..on a really good day the GBPJPY might move 250-300, but that doesn't happen nearly as much as it used to..
 

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