Using CCI to Make a Living Off Forex - page 14
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Hi All,
The beauty of the CCI indicator is that it one of the few indicators that can be utilize without the need to look at charts. (when you consider that the 100 / -100 level represent minor levels of support and resistance and the zero line is major support or resistance it is a very intuitive indicator. It does take sometime to get use to, but it really is a awesome indicator)
With regards to the nonlagMA and the RSI substitution for the entry / exit signals, I tried it out. I also tried using the following indicators (from Mladen)
- LSMA trend - accelerated.mq4 (Really powerful little indicator this one. Much better version of the standard LSMA indicator)
- LSMA trend arrows.mq4
But I still find that Mladen's "averages.mq4" indicator out performs all of these (I have also been experimenting with periods between 5 - 8 at the moment for this "averages" indicator). Mladen's "averages" indicator is kind of a
jack-of-all-trades-Moving-Averages indicator that facilitates the following through a parameter in its options called "Method".
- 0: Sma
- 1: Ema
- 2: Smma
- 3: Lwma
- 4: Lsma
- 5: Tma
- 6: SineWMA
- 7: VolumeWMA
- 8: Hma
- 9: NonLagMa
I'm finding the RSI cross to be a little late when compared to the "averages" exit signal. (at least 1 bar late, this 1 bar sometimes means the difference of loosing or gaining an addition 40pips)
Here are two images that show you what the LSMA indicators look like from Mladen: (just in case some of you do not know what they look like)
LSMA trend arrows.mq4
LSMA trend - accelerated.mq4
Cheers
Codex
Yeah, Mladens and the normal non lag ma work well for confirming the exit of the 100 level. This is a strategy in itself that I can see as very profitable when mixed with ssl channel, which is the same as gann hi lo, but only if placed on a higher timeframe. So many ways to trade forex. Perhaps for another thread.
It won't be as good as this strategy since the chance of catching trends are way lower, since alot of the factors use to detect and gauge trends are simplified or non existent, but with touted money management and a tighter trail stop, the profitability is good. This is why I like my cci strategy, the chances are in you field once a signal is given. And also signals are very clear.
A dashboard would be the next step, too bad I can't code or I would have this and other tools up and going.
Current status at the time of this pic
Hello JTG and codex,
am starting to get worried lol. Will these things ever align. Cos I have been following things up since last week and Usd/Chf has refused to go the other way he he he he. Have a look at this pic.
Thanks
Hi deforex247,
At the moment it is a holiday period and the market will behave strangely.
I would be careful trading over the next 3 days as a lot of the big boys will be undertaking "market flushing" i.e. stop hunting. This usually occurs just before a big move.
If you are still running a demo account you could take a little more aggressive trading style over these next few days.
Have a look at this, its does not rely on the TOR indicator or correlation (but if there is some correlation then it is better)
The premise behind this is based on Woodies concept where by he said that "all you need is the CCI, that's it"... Old Ken Wood showed that he could trade the CCI on a single timeframe without the need for correlation or price bars.
James strategy is to me like a super enhanced modernized version of Ken Woods 25 year old "Woodies-CCI-System". And yes if you have the patients to wait for that sweet spot setup the probability of the trade going in your favor is increased ten fold.
But give this aggressive style a go, I have been having success with this over these quite days.
Trading Rules:
Buy Setup
1. Turbo CCI has crossed from BELOWto ABOVEthe -100
level and by crossed I mean it must cross over nicely and not just touch.
As soon as the Trend CCI crosses the -100 level enter the trade (no
waiting for the candle to close)
OR
2. Trend CCI and Turbo CCI both cross the 0 level from BELOWto
ABOVEat the same time. Enter trade.
(in fact, depending on how aggressive you are if you are already in a trade from step 1, you could add another lot at this point)
Sell Setup
1. Turbo CCI crosses over nicely from ABOVEto BELOWthe 100 level
As soon as Trend CCI crosses the 100 level from above to below enter
trade
OR
2. Trend CCI and Turbo CCI both cross the 0 level from ABOVEto BELOW at the same time. Enter trade.
Aggressive styles for both buy and sell trades:
- Turbo CCI touches or crosses either the 250 or -250 level, it suddenly
hooks back and starts tracking in the opposite direction. As soon as you
see the Trend CCI (it may not reach as high as the Turbo CCI, but it will
start its hook back about the same time) do the same enter the
appropriate trade. (Method is known as HFE - Hook back from Extremes)
- Trend CCI and Turbo CCI both cross the 0 level at the same time.
Depending on direction of cross enter trade (above to below = sell, below
to above buy)
- Turbo CCI touches the zero level. Turbo CCI then hooks back and starts t
tracking in the opposite direction. Entry trade. (Method is know as a ZLR -
Zero Line Reject)
- Turbo CCI crosses through the 0 level and will either track to about half way
between either the 100 or -100 level (In other words the 50 / -50 level)(best
confidence is gained when CCI does not track all they way to either the 50
/ -50 level, but stops short). Turbo CCI then hooks back and starts tracking
in the opposite direction. Entry trade. (Method is also know as a ZLR -
Zero Line Reject)
Exit Conditions.
Buy Exit:
- Turbo CCI touches and just crosses from above to below the 100 level.
(careful here as sometimes you can get a bounce off the 100 level which
signifies a continuation)
Sell Exit:
- Turbo CCI touches and or crosses from below to above the -100 level.
(careful here as sometimes you can get a bounce off the -100 level which
signifies a continuation)
If you are in the midst of a trade and the Turbo CCI hooks back on you and touches or crosses the 0 level... exit immediately. The 0 level is considered and area of major support and resistance.
And lastly do not forget to watch the nonlagMA, if it gives you the signal to exit / enter when any of the above conditions are in place listen to it.
NOTE: Please do not consider this as part of James the Giant's method. James has put in place a very sustainable methodology that will repeatedly bring in rewards if followed correctly. This little side divergence was just something I played around with during these quite market hours.
Cheers
Codex
I get about 1 or 2 trade setups a day that last half a day or overnight. The trade setups are not rare, and when they happen they last a good couple of hours. But these days and in slow markets, it is perhaps good to trade codex's woodie setups that he posted up above.
There's a trade set up right now - all green on the correlation pairs, and all red on the usdchf. About to enter my first trade on this system!
Just to let everyone know that my first trade using James' system was (and still is) a great success. Two trades are still running, and the others stopped out with solid profit. I just wished I'd gone in with larger lots, but I always use baby steps with any new system
Thanks James for sharing your system with everyone here!
Trade signal
Agrajag,
Did you look just at the H4 signals or were all time frames (M15, M30, H1) all aligned correctly for each of the pairs? Did you use the NonLagMA color change? I was away from my comp when this trade went down so I am curious how stringent you were on the trade.
Also, just to confirm, what are you using for your exit strategy?
Thx
ej5
All four time frames were green, with the corresponding time frames on the usd/chf showing red. The nonlma colours were also what they should be for the right trade setup (blue for all correlation pairs, red for usdchf), so I entered longs on all correlation pairs and short the usdchf. I should note that this is the first time I've captured the ideal setup as dictated by James' system, so I jumped on it.
It would be great if there was some sort of alarm (sms and email too - may as well add that to the wishlist
) to let you know when all the conditions aligned, but in the meantime I just check the charts every now and then to see if a trade is setting up.
As for an exit strategy, I began with a 55 pip trailing stop, but tightened it up as the trades went into profit. I currently have one trade still active (nzd long), but the others got stopped out. I have to work on the best way to exit these trades, but the entries using this system seem bang on.
Cool to see you use the this trading system agrajag. I just got back from the airport and I found a setup appear before my eyes. Went into immediate profit, not I shall leave it overnight and see how the trade progresses overnight. I have not found anything better than Mladens Non lag MA when exiting the trade so far by the way. Maybe Gann Hi Lo will be good at a small period and if only used before candle close.