CCI True Range Trader
The CCI True Range Trader first detects price ranges and then enters the market based on signals by the Commodity Channel Index (CCI) and the Relative Strength Index (RSI) indicator.
Take profit and stop loss levels can be either fixed or based on the Average True Range (ATR) indicator.
In order to enter the market, all of the following conditions have to be met:
No trades at night or after hours. The user can define the starting hour as well as the ending hour when the EA will stop entering the market.
2. Ranging market
The market is ranging when it is not trending. To identify the absence of a trend, the Average Directional Index (ADX) indicator is checked. The ADX indicates the strength of a trend, when the ADX is below a certain level, the market is ranging.
3. Entry signal by the CCI indicator
To identify the bounds of a range, the CCI indicator is used. The CCI indicates the deviation from the mean of a price range. If the CCI is oversold, a buy signal is generated, if the CCI is overbought, a sell signal is created.
4. Entry signal by the RSI indicator
The RSI indicator is checked to detect a weakening in market strength. When the RSI indicates oversold price levels, a buy signal is generated, if the RSI shows overbought markets, a sell signal is created.
Take profit and stop loss
To set the levels for take profit and stop loss, the user has the option to choose either fixed levels or multiples of the value of the ATR indicator. When choosing the latter option, the user has to specify a minimum take profit and a minimum stop loss level, to avoid ATR values that are too small.
To protect the users capital from losses, losing trades are offset by opening positions with an increased volume. This works particularly well in ranging markets, because the price will usually either revert to its mean or show some signs of consolidation.
- volumeCalculationMode - can be either FIXED or DYNAMIC. FIXED means trading with a fixed volume while DYNAMIC means risking a percentage of the account balance
- fixedVolume - the fixed volume in lots, used when volumeCalculationMode is set to FIXED
- dynamicRisk - the percentage of the balance that is risked on each trade when volumeCalculationMode is set to DYNAMIC
- maxSpread - the maximum spread in points
- maxDeviation - the maximum slippage in points
- minTakeProfit - the minimum take profit level in points
- minStopLoss - the minimum stop loss level in points
- useATR - when set to true, take profit and stop loss levels are calculated based on the ATR indicator. When set to false, minTakeProfit and minStopLoss are used as take profit and stop loss
- atrPeriod - the period of the ATR indicator
- atrMultiplier - the ATR is multiplied by this value to determine the stop loss and take profit levels
- startingHour - the hour when the EA will begin entering the market in GMT time
- endingHour - the hour when the EA will stop entering the market in GMT time
- adxPeriod - the period of the ADX indicator
- adxMax - the maximum value of the ADX indicator
- cciPeriod - the period of the CCI indicator
- cciAppliedPrice - the price the CCI is applied to
- cciOverBought - the level above which the CCI is considered overbought
- cciOverSold - the level below which the CCI is considered oversold
- rsiPeriod - the period of the RSI indicator
- rsiAppliedPrice - the price the RSI is applied to
- rsiOverBought - the level above which the RSI is considered overbought
- rsiOverSold - the level below which the RSI is considered oversold