Using CCI to Make a Living Off Forex - page 2

hi,

thanks for sharing this strategy.

i have a request here,

can you show us the recommended stoploss placement using this strategy.

thanks a lot.

Max, that is a good find.

Tough s/r there on that pair. If I found this trade, I would move along to another pair for a less sideways market though. But who knows, it might go up a hundred pips

Setup fits the rules though

Hi lonelyfx. I dont set a SL because I only trade Daily timeframes and 4 Hr, so checking on my trade 2 or 3 times a day is more than enough to close a trade before it reverses direction against me.

However the best and most relevant stop loss I can give is a trail stop according to CCI 6 that is shown on the chart.

Place the indicator on your chart, and enter the following settings.

CCI Period :6

Find CCI Lvl 1: 0

Find CCI Lvl 2: 0

Show CCI0:True

This is a wierd type of trail stop because when you take a trade in the direction of an upcoming trend, and the trend explodes in your direction a few hrs later, CCI 6 will go in the opposite direction of the zero level like a rocket, so you will be trailing your stop backwards. But, it is the most accurate way to protect your trade overnight or throughout the day.

Place the SL 20 pips or so away from the indicator since sometimes the market comes very close to crossing zero, but doesn't.

thank you so much for the explanation.

i am putting it on my chart now.

hm.. i can see it now.

brilliant idea! thanks again sir!

Need a Filter

I am glad that you are doing well with this but, I personally would use another filter with it. In your SC I picked up on some false signals so I went to a period slightly before and found four false signals. While there are good signals in between each false signal that leaves us with not better than 50 percent. Hence, the need for a filter. See the attached SC. I used both line and histogram (histogram gives exact signal for crossover values).

friendly regards,

gcgman

The losses of this strategy are kept small, since if a trade is bad, it will enter into the opposite zero territory very quickly, which is when you exit. The wins easily outdo the losses aswell, as you might be able to see when you were spotting the bad trades in between the trends. Plus 4 bad trades in 15 days is not that bad. But in the end, the losses are outdone by the pips won.

I will take a look at your filter and reply with what I think.

Thanks for the chart and helping me to improve the strategy.

And your using CCI 20 instead of 14 btw.

Try CCI 8

Hi James, Sorry I switch 20 for 14. I took another screen shot with a CCI 8 added. Notice that all the bad signals disappear when using 8 instead of 6. Also, there are some good continuation trades, when 14 bounces off zero and 8 crosses zero (not noted on sc).

regards,

gcgman

Great!

I have also thought of switching to CCI 8 instead of 6. I will give it a good look tomorrow, thanks for your insight!

Yeah, CCI 8 works alot better than 6. I will change it in the trading rules on the first post.

Thanks

Can someone make an EA that will enter and exit a trade when CCI 8 enters or exits 0. The trader will only put this EA on the chart when CCI 14 exits 100 as a possible trade could arise.