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MTF CCI Strategy

StaticX

Member
Hi Guys,

Some of you may have already been following James the Giant's post over at Forex-TSD with regards to his "Using CCI to Make a Living Off Forex". I viewed this strategy as the enhancement to the Woodies System as it made use of the newer CCI periods (14 and 8).
For Reference here is the link to his old CCI system
Code:
[URL="http://www.forex-tsd.com/manual-trading-systems/28215-using-cci-make-living-off-forex.html"]Using CCI to Make a Living Off Forex[/URL]
The strategy made use of an additional indicator called the nonlagma that was used to exit / enter trades. This nonlagMA was set to have a period of 8.
James eventually decided to drop this nonlagMA and replace it with 2 RSI indicators. These RSI indicators were then placed ontop of each other. The chosen periods for these 2 RSI's were 5 and 13. (When the 5 crossed from below to above the 13 it was considered an uptrend and with confirmations from the CCI 8, 14, he would then enter the appropiate trade. Just reverse the conditions for sells)

James then decided to enhance this strategy even further to only make use of the CCI indicator by itself. He got hold of a MTF CCI indicator and came up with the following new version to his existing CCI strategy:

________________________________________________________________
MTF CCI Strategy

The strategy works by placing a multi timeframe cci on the:

Newest Addition- 15 min trades- CCI
CCI 8 on 15 min
CCI 4 on 1 HR,
and CCI 2 on 4 HR.

Enter when CCI enters zero on all timeframes in one direction, no matter which timeframe enters it first. If all timeframes align, except 4 hr, then 4 hr aligns, take the trade and exit when any timeframe exits the zero level.

Daily, then 4 HR, and another one on the 1 HR tf. I like the zero line when using the CCI, so I have based it around the zero line for 1 HR trades

or on:

Weekly, Daily, and 4 HR timeframes with the same CCI period to take longer 4 HR tf trades (personally I trade this)

Highest timeframe uses CCI 2
Second highest tf uses CCI 4
Lowest timeframe uses CCI 8 no matter what set of timeframes you choose to trade on.

When the daily CCI goes above zero, only look for buy trades. A trade is then initiated when 4HR CCI reaches above zero along with the 1 HR CCI.

Exit when the 1 HR CCI goes back below the zero line.

I try to make my strategies simple, easy to understand, and unlike other strategies in this forum, not based on several indicators. A good indicator when understood well is better than a mix of 5 indicators telling you different things.

My strategies have high win ratios, so all you have to do is keep the money for margin and take the trades.

So to review,
Here is how to take a trade:
CCI 2-Daily Above Zero
CCI 4- 4HR Above Zero
CCI 8- 1 HR Just went above Zero, go long!
(same for the 4HR trade setup)

Exit when 1 HR CCI goes back below zero.

Opposite for sell trades.

________________________________________________________________

James also made use of the same trade management EA from his previous CCI strategy for managing his trades.
The same SL, TP and Trailing stops have also stayed the same for this new MTF Strategy.

I personally have been trading a very similar system. My own system comprised of the following:
- Timeframe: 4H
- 2 CCI indicators (named based on Woodies CCI system, Trend & Turbo CCI)
a) Trend CCI would be set to a period of 14
b) Turbo CCI would be set to a period of 8.
Buy:
- The Turbo CCI (8) must first cross from below to above the -100 level. As
soon as the Trend CCI (14) did the same, a buy trade would be entered.
If I missed the entry and I caught the following condition
Both Trend CCI (14) and Turbo CCI (8) would both cross the zero level from
below to above at the same time.
I would enter the trade.

If I had already entered the trade at the crossing of the -100 level and both
the Trend CCI (8) and the Turbo CCI (14) crossed the zero level, I would
enter a another lot.
The exit condition for a buy trade was as follows:
- The Turbo CCI (8) crossed from above to below the +100 level OR
- The Turbo CCI (8) hooked back from the zero level

For a sell trade, just reverse the above conditions.

I also never made use of the nonlagMA for my own system. I only started using it after reading James's thread.

I manually baby sit my trade whilst it is on the go. My SL is set to either 30 or 40 pips (actually depends on how the market is moving on that day.)

James new MTF CCI strategy now means that I can finally drop this nonlagMA (it was causing me much stress, as most of the time I would receive exit signals prematurely, on many occasion I found that I was exiting the trade far to early and missing out on precious pips.).

Unfortunately with this new MTF CCI strategy you cannot overly the 3 CCI indicators on top of each other as their "ranges" are completely different and if you do, you will very incorrect readings.

I have attached to this post my MTF CCI template that I use as well as the MTF CCI indicator.

There is another CCI indicator that you can use and I may switch to it one day. It's the latest version of this CCI indicator suite and it's called:
"CCI - nrp & mtf advanced.mq4". Until I can figure out how to apply the smoothing parameters correctly I am sticking to the previous version.
(If you do make use of this new indicator and want the same readings as the previous version, then make sure you set the parameter called "SmoothLength" to a value of 1 or lower.)
I have also attached this indicator.

At the moment I am still playing around with my own system and this new MTF enhancement. Both seem to be very good!!.

Marcuss has been assisting me with some investigations and he came up with a nice little addition. He added a Zero lag Hull moving average indicator for exists and entries.

Timeframe: 1H
- 2 CCI indicators
a) Trend CCI set to a period of 8
b) Turbo CCI set to a period of 14
- Zero lag Hull moving average - MTF histo version (for cleaner charts) with a
period set to 8 and its timeframe set to 4H.

The 2 CCI indicators used are the standard built in MT4 versions. They would then be applied to the same window i.e. so that they were ontop of each other.
The same buy and sell rules used in my system would be used here as well plus we could use used the Zero lag Hull moving average for better entries and exists. Basically you would enter a trade on the change of color and exit when the opposite occurred. If the Zero Lag Hull indicator was not insync with the CCI conditions, then no trade is entered. This Zero Lag Hull indicator kept you out of trouble.

I have attached 2 version of the Zero lag Hull moving average to this post. One is a histo version and the other is a standard chart version.

So there it is, please feel free to enhance it or rip it apart (be gentle and keep an open mind). I have had a lot of success with it so far.

And please if you feel that I have confused you here (it is 1:30am in the morning and I am a little tired, so my brain is not working 100%) tell me and I will see if I can reformat this 1st post.

I will also keep this first post updated with regards to any new indicators and enhancements etc...

ps: If you like manual trading then please have a look into this strategy. It kicks all EA's squarely in the balls !!!

Cheers
StaticX

******** REVISIONS ********

Revision 1.0
- Date added: 4 Jan 2011
- Package Name: CCI_Strategy_Revision_1.0.zip
- Indicators posted with Revision 1.0
a) CCI - nrp & mtf
b) CCI - nrp & mtf advanced
c) Zero lag Hull moving average
d) Zero lag Hull moving average - histo & alerts
- Templates posted:
a) CCI_MTF_Strategy_Release_1.0.zip

Revision 1.1
- Description: Release 1.1 makes drops the need to have the MTF CCI indicators. Instead it just
allows you to trade on one timeframe (15M, 30M, 1H, 4H). It makes use of the built in CCI indicator
for MT4 and the 2 new RSI alert indicators which are used for the RSI 5 and RSI 13 crossings.
- Date added: 6 Jan 2011
- Package Name: CCI_Strategy_Revision_1.1.zip
- Indicators Posted with Revision 1.1
a) RSI_X2_alarm.mq4
b) RSICross_Signal_v1.mq4
- Templates posted:
a) CCI_Strategy_r1.1.tpl
 
S

swissforex

bit confused

bit confused

Hi mate

thx for sharing another interesting method

btw

I'm a bit confused about your rules

I see it's a 4H sys but I can't see the TF and the PAIR from chart attached

I read your post 3 times but I can't find a clear answer

I personally have been trading a very similar system. My own system comprised of the following:
- Timeframe: 4H
- 2 CCI indicators (named based on Woodies CCI system, Trend & Turbo CCI)
a) Trend CCI would be set to a period of 14
b) Turbo CCI would be set to a period of 8.
Buy:
- The Turbo CCI (8) must first cross from below to above the -100 level. As
soon as the Trend CCI (14) did the same, a buy trade would be entered.
If I missed the entry and I caught the following condition
Both Trend CCI (14) and Turbo CCI (8) would both cross the zero level from
below to above at the same time.
I would enter the trade.

The 2 CCI indicators are the standard built in MT4 ?
I'm more interested in YOUR Real account method,could u please post some charts?
I hope is good for longer TFs(daily,weekly)
Which PAIRs do u trade?

which broker do u trade on REAL account?
we both know NOT all Brokers data are good

ooops,too many questions:D

thx:D
 

StaticX

Member
Hi swissforex,

I must have been very tired last night :) I will spend some time today trying to neaten up my 1st post and to make things more clear.

To answer your questions:
The 2 CCI indicators are the standard built in MT4 ?
Yes they are the built in CCI indicators that come with MT4. This only applies to my method, however I also use Jame's new MTF CCI strategy which makes use of the CCI - nrp & mtf.mq4 indicator

I hope is good for longer TFs(daily,weekly)
Yes, it works very well for the longer timeframes

Which PAIRs do u trade?
I trade the following 6 paris:
EURUSD, GBPUSD, AUDUSD, USDCHF, USDJPY, GBPJPY


The above 6 pairs usually have extremely good positive and negative correlations.
EURUSD, GBPUSD, AUDUSD usually move together in the same direction with each other. (positive correlation)
USDCHF, USDJPY will move together in the same direction, and both these 2 pairs have negative correlation with the above 3 mentioned pairs. (almost like an inverse mirror effect)

The idea behind James's strategy (and my own) is to use the power of the USD currency as the one of the core indexes. If the pairs are correlating nicely then the probability of the trade working out in your favor is increased ten fold.

I added the GPBJPY into the mix as it is usually a very fast moving pair, and is quite a risky pair. I do not often trade this pair do to its volatility but when I do the setup needs to be perfect. This pair can give up many many pips in a very short timeframe.

Examples of same direction moving currency pairs are:
EUR/USD and GBP/USD
EUR/USD and NZD/USD
USD/CHF and USD/JPY
AUD/USD and GBP/USD
AUD/USD and EUR/USD

Inversely moving pairs are:
EUR/USD and USD/CHF
GBP/USD and USD/JPY
GBP/USD and USD/CHF
AUD/USD and USD/CAD
AUD/USD and USD/JPY

which broker do u trade on REAL account?
I currently use ThinkForex. (Yes they are unregulated (for now), but they are receiving huge praises from the community and have recently moved upto the 2nd spot in the Forex Peace Army Broker reviews. They have been given a 5 star rating by the Forex Peace Army community. Accounts with them are segregated, and held in a trust with HSBC.

I also have an account with SmartTradeFX, but since they dropped PayPal as one of their payment options, I have not been able to deposit any funds into them. Their current payment option keeps failing every time I try and sign up with it...


Cheers
StaticX
 

StaticX

Member
Hi Guys,

Here are two screenshots showing off each strategy.

MTF CCI Strategy (James the Giant)
Time Frame: 15M

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StaticX + Marcuss hybrid of the CCI strategy.
TimeFrame: 1H

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The idea behind the above screenshot is to only take trades in based on the 4H ZeroLag Hull indicator. i.e. buys when its green and sells when its red. (this way it keeps you out of trouble)

Cheers
StaticX
 

Attachments

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StaticX

Member
Hi Guys,

Just an interresting observation.

If you apply the ZeroLag Hull Moving Average indicator (with a timeframe of 4H) to James's MTF CCI strategy, you can drop the 3rd CCI indicator (the 4H one).

The purpose of the 4H CCI and the 4H ZeroLag Hull is to make sure you trade in the direction of the longer term trend. Usually for the 4H CCI you have to wait till its either above or below the zero line, however during it's climb to these levels you may loose out on good trades, as the climb sometimes takes awhile. The ZeroLag gives you the instant notification.

I've tried running both the ZeroLag HULL and a NonlagMA, both seem to give very similar notifications, but I find the ZeroLag is little better.

Let me know what you guys think.

Cheers
StaticX
 

jyrik

Member
I will try your idea today. Zero lag period to 8. I tried yesterday MTF strategy on 4 tf and didnt like that CCI adv with arrows version in lowertimeframe did repaint so much on current bar. Hope that this will not to this.
 

StaticX

Member
Hi jyrik,

Just remember that the current bar will fluctuate until the candle closes. A bad repainting indicator will actually change 2-3 bars back based on the current candles close. This one only changes on the current bar/candle.

One of the alert parameters is OnCurrent. This means that you will get signals as the current bar changes. (which is sometimes frustrating as it will go off multiple times)

Cheers
StaticX
 
S

swissforex

cool

cool

Hi jyrik,

Just remember that the current bar will fluctuate until the candle closes. A bad repainting indicator will actually change 2-3 bars back based on the current candles close. This one only changes on the current bar/candle.

One of the alert parameters is OnCurrent. This means that you will get signals as the current bar changes. (which is sometimes frustrating as it will go off multiple times)

Cheers
StaticX

HI guys

StaticX,thank you for good explanation

You gave me feed for my thoughts

I' m watching Woodi video course now,
starting from the ground floor before rising up

I've studied a lot of Systems before,I guess one more shouldn't kill me

Update here soon

My small contribution to this thread


CORRELATION SHEET

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StaticX

Member
Hi swissforex,

Those Woodies videos are very interesting. The best thing I took away from them was just how powerful the CCI indicator is.

That is why I am basing all my strategies around the CCI indicator.
I am trying not to overload my charts, but I do am playing around with 2 additional indicators. The Zerolag HULL moving average and the nonlagMA.

Also do not forget that Woodies system is a fast system due to the nature of range bars. He's never in a trade for more than an hour or two.
(Which is one of the reasons why I first started looking into woodies. I liked the fast nature of it and the tight stop loss.)

Cheers
StaticX
 

StaticX

Member
Hi Guys,

There is a very nice HFE (hook from extremes) forming on the GBPUSD. I thought I would post it and show you.

At the moment I am waiting for both the Trend CCI (14) and the Turbo CCI (8) to cross the 100 level. (Turbo first then trend - If I were feeling aggressive today I may take the trade on the just the turbo crossing, but it is risky to do so as you could get a bounce and hence a continuation)

So I am just waiting for the cross and the Zerolag MA to change to RED.

You must be registered for see images


The above screenshot is for my 1H CCI Strategy.

Marcuss pointed out something very interresting to me earlier this morning. When I add two CCI indicators to the same window I was doing the following:
1. I would first add the "Commodity Channel Index" from the MetaTrader indicators. This would be set to a period of 14. I then add the 0 zero level.
2. I would then drag the CCI indicator from the Custom Indicators onto (1) and set its period to 8.
I do not add any levels to this as they are already there from (1).

Now what Marcuss showed me is that if you enable the zero line on (2) you will find that there is a slight offset... this concerned me as it could lead to false entries.

So to play it safe I have added (1) and (2) from above into their own sub windows. (you can see it the screen shot above)

Cheers
Codex
 

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StaticX

Member
And for a complete comparison, here is the same chart this time with the MTF CCI from James applied.

As you can see the 15 min chart has already cross the 100 level but the CCI 4H is still pointing up. So the trade cannot be taken until this CCI 4H points down.

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Attachments

  • GPBUSD_MTF_CCI.jpg
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grood

Member
If you still use the Kardamom indis, you could also verify the trend using SI bar. I think the H4 CCI above gives quite late - but safe - entries.

The Kardamoms are quite handy together with the multi-CCI setup you are showing here, I'm not trading all the strange patterns though, mainly ZLR and TLB, mostly in direction of main trend (using pullbacks as entry).
 

altoronto

New member
Just my 2 cents to this great thread, you can add one CCI indicator on top of another one but be sure that indicators max/min needs to be same value (let say -320 for min and 320 max) and of course just make 0 level cross on first one.
 

StaticX

Member
Thanks Altoronto,

So the idea is to set the min / max range to the highest potential say 350 / -350 for example?

I played around with that CCI Stochastics indicator that came out awhile ago from MLaden. It was created to give the CCI a defined ranged with which to work in i.e. -100 / 100.
But trading with it just did not feel right.

Cheers
StaticX
 

altoronto

New member
What I mean, is to check boxes for fixed min and fixed max in "common" tab of indicator and set to -320 and 320, indicator params in "input" tab needs to stay same -100/100.
 

StaticX

Member
Hi jyrik,

Yes I have opened up a short on the EURUSD. (about 15 / 20 mins ago)

I generally do not open two separate trades with 2 correlating currency pairs like EURUSD AND GBPUSD. Instead what I do is open a further lot on say EURUSD.

I use correlation as one of my confidence factors when trading. I try not to be greedy and take trades all over show, but stick with a good pair that I know will give me pips. Right now I am 37pips in the green on my short with the EURUSD.

Cheers
StaticX
 

jyrik

Member
I opened 10 minutes back trades. But how do you choose on which correlation pair you open trades I opened on boths. But eurusd is moving more nicely than gu. And is good idea to go buy in usdjpy there will be bounce of in zero are or how do you think?
 

StaticX

Member
Hi Guys,

Just a reminder that the Zerolag Hull bar will fluctuate until it's 4H candle closes.
So you will see it bouncing back and forth during the 1H timeframe. (Last 4 bars = 4 hours, or 1 H4 candle)

One of the items I was trying out today is seeing how James 4H CCI (2) compares to the 4H Zerolag Hull indicator, with regards to trade direction.
At the moment it is a tough call.

The Zerolag HULL indicator gave me the RED bars I needed to enter my trade, but looking at James 4H CCI (2) I see it has not even moved down below the zero line yet. This would mean I should not have entered the short.

The flip side is that using the ZeroLag Hull you have to deal with the fluctuations of the bar until its associated 4H candle closes.

Any ideas or suggestions would be most welcome :)

(I recall James using 2 RSI indicators, and he watched for their cross, might test this tomorrow)

Cheers
StaticX
 

StaticX

Member
lol, If you ever want to see how not to trade then watch the EURUSD thread over at Forex Factory....

Holy smack balls some of the guys there can talk rubbish. Worst thing about that thread is that it results in all new forex guys doubting themselves and following what is said there...

(Remember the rule, trade what you see not what you hear !)

And it is really funny to see some of those guys charts, I counted 22 indicators on the one guys chart.

One of the few analysts I listen to is old Sive Morten from Forex Peace Army. His technical analysis is very advanced (sometimes goes right over my head) but every now and then I have a brain fart and actually understand what he says.

PS: If you are new to Forex, please stay away from the EURUSD thread at Forex Factory, you will not learn anything!!!

Cheers
StaticX
 
S

swissforex

work in progress

work in progress

Hi StaticX

just workin on your sys

3 questions:

We both know Woodie Traders do not watch price action at all.They watch only CCi.

so my first question is:

1-do u watch CCI for trend direction on correlated pairs,or do u watch Candlesticks and price action too??


2- could you tell us more about your exiting strategies? Is it a standard Woodie exit?

3- which Woodie patterns work better in your trading experience?


thx
keep on the good workin'


P.S.
sorry for being a Forum Moderator with such a lot of answers,but I'm a Curious guy
 

grood

Member
I use this ATR indicator to determine potential reversal levels, in addition to normal pivots. For me it's quite useful together with a woodie/CCI confirmation.

I do not really like the H4 CCI(2). It gives the signal really late, so you might miss a good portion of a move.. any idea how to tackle this? What I like: plain and simple chart setup :D
 

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