My CCI/Coral Breakout system

[travelkoen]

Prelude

let me start of with saying a few things I want do not want to see in this thread:

• Questions about account statements or live trade signals: I will not have it, the thread is supposed to be about the system. I’ve been trading for about 3 years, tried every single system, signal service and a huge number of gurus.
  In total that has costed me about 20.000 euro, divine intervention gave me this system so I’m spreading the word (for those who wonder, yes it is a joke…).
  I’m not gaining anything by sharing this system and will not offer to trade for you or to copy my trades. I’ve been in the dark quit a few times the last 3 years and am happy that I finally found something that works for me.

• Do not flood the thread with other indicators, templates or EA’s, if you have a relevant one then please add the link to the thread about it. If there is no thread yet, then start one.

• I have my own ideas about Risk/Reward, this system will only give you 1:1 (sometimes less), but I found it to work 8/10 and that obviously helps these stats.

• Charts I use are hindsight since I want to have clear examples and while I’m trading I have no time to post or edit charts.

• Be respectfull

Indicators

It consists of two main indicators:

• coral: setting 28
• cci (included in all MT4): setting 21, levels 0,150 and -150
• optional you can add any support/resistance level, i use sr_KG_ Support_and_Resistantce_v101

The pairs

You can use it on just about every pair
I like using it on JPY pairs, they usually offer clean and quick breaks (EJ, AJ,GJ,…)

Time frame

I choose 5M timeframe, simply because that gives me multiple entries per day, I like to trade a lot, not sit back and check my charts every hour. It is a personal choice. It works on higher timeframes but you should adjust SL and TP accordingly.

The system

for buy

wait untill cci has moved below -150
Once it reverses up and touches CCI 0 and the coral line on your chart then buy
SL is at last low, your TP 25 pips (I personally try not to be greedy, but do feel free to leave it open)
Once CCI has moved above 150 then start looking for exit and the next move…

for sell

wait untill cci has moved above 150
Once it reverses down and touches CCI 0 and the coral line on your chart then sell
SL is at last high, your TP 25 pips (I personally try not to be greedy, but do feel free to leave it open)
Once CCI has moved below -150 then start looking for exit and the next move…

third option: the stop loss hunter

Obviously this does not always work (otherwise I would call it the holy grail): sometimes it reverses back before it reaches CCI -150 or 150. The beautifull thing is you can recover your lost pips immediately.

buy signal: SL hit

CCI was under -150, it crossed or touched both CCI and Coral and then it goes down again and hits your SL, then sell immediately and put your SL at the high you just got. TP 25 pips

sell signal: SL hit

CCI was above 150, it crossed or touched both CCI and Coral and then it goes up again and hits your SL, then buy immediately and put your SL at the high you just got. TP 25 pips

I will add some charts later today, my personal goal is to have +25 on all 6 pairs I trade (EURUSD, EURJPY, GBPJPY, AUDJPY, CHFJPY and CADJPY).

Update 14/06/2012

I noticed that defining the TP target is important, did some more research and these are my findings:

EURUSD = 20 pips
GBPUSD = 25 pips
EURJPY = 25 pips and trailing stop
GBPJPY = 25 pips and trailing stop

whenever I have time will look into other pairs

Indicators.zip (10.1 KB)

[travelkoen]

feel free to ask questions about it

BUY reached target of 25 pips, had a 67 pip potential, ultimate SL hit at 55 pips

[travelkoen]

failed trade, at least if you were looking for the 25 pip goal, 15 pips were possible.
When CCI went below -150, put SL at Coral or breakeven.

so 0 pips or maximum 8 pips (if stop was at coral line (99.31)
Good thing is that it is the start of yet another trade:

another 25 pips, maximum of 47 pips

[travelkoen]

The move was clean and quick, 25 pip goal reached within 20 minutes
I got out at 25 pips, 36 pips was the maximum but technically the move is still ongoing as CCI didn’t go below -150 yet or break the SL level @ 99.77

[travelkoen]

NOt always do the trades present the easy way, as said before it is sometimes good to move your stop when CCI is above 150 or below -150 before you hit TP, or when things really go bad and your SL is hit, do not hesitate and step in again!

so next up is selling…or not?

And another TP not hit…

But then the fun starts

And another one following

50 pips at least so far…

[travelkoen]

Difficult start but nonetheless 15 possible pips

And still nothing clear -8 pips

Even revearsal doesn’t work and the following short trade doesn’t reach 25 pips target, max possible pips 14 (5 + 9 pips)

Finally a textbook trade, no doubts about this one 25 pips!

And another one! 25 pips

[mscrowell75]

Hi there, thanks for sharing your system. I like it.

You have made it quite clear. With no BS hype.

I am going to keep an eye on it for a while.

Do you have a time of day that you like to trade this system? Judging by your posts, you like the london/ny hours.

When do you quit for the day?

[travelkoen]

Hi,
yeah I like to keep quiet and clean charts…

Feel free to pop questions if you need to.

My main trading hours are London/NY, I sometimes monitor markets during Asian but it seldom gives opportunities.
I usually quit around London close, sometimes an hour longer or so, but my opinion is that if you need to make your profits after this time you might as wel go and have a pint and relax instead.

[travelkoen]

Unfortunately CCI did not go below -150, so I did not take this one

Textbook trade this one = 25 pips!

Clear entry, CCI above 150, SL moved to BE or coral = 0 pips

Textbook breakout = 25 pips

That makes a possible 121 pips in the best case scenario…not bad, I actually made 78 of the 121, happy!

[travelkoen]

Buy signal invalidated by CCI touching 150 level = 0 pips

A perfect breakout trade. 25 pips

Allthough quite late in the day and hesitation in the middle it gives nice 25 pips

A possible total of 148 pips, of which i booked 88

[psaini1973]

Thanks 4 the system… thou i didnt clearly understand how n where u enter ur trades… anyways as u r stating u r making so many pips congratulations 4 that … but i would like you to use drag n drop function of ur closed trades so as to we all can see where in the chart u entered and exited the trade… this way we all can synchronize the trades and ur indicators …i hope u do it … thanks

[travelkoen]

Hello psaini1973,

please clarify whatever you mean with drag and drop?
Entry is the white dotted line, SL the red dotted line and green dotted line = TP
entry = when CCI touches 0 and on the chart coral line is touched

[mscrowell75]

I just entered long eur/usd @1.2539. Using your system.

[mscrowell75]

I’ve set my stop loss @1.2525, take profit is 25 pips. looks good so far… up 6 pips.

[travelkoen]

Looks like a good entry, however watch out for this 2550 level, said to be well defended, if it breaks you’ll book your pips thats for sure.
I have to go out now, will review it later this evening and give you summary of my day

[mscrowell75]

Broke to about 20 pips then fell back to coral/BE. I booked 2 pips…

[QE3]

This may sound really naive but what’s the coral?

[FlaviusSeverus]

Thanks for sharing I will have a go at your system tomorrow looks promising!

[travelkoen]

Will post my view in a moment, the only thing I noticed is that entry on my chart is @1.2534 which would mean that it got to the 25 pip target, close I admit but it got there.
I would have probably also closed at +2 or 0.
The move that followed was more interesting though, did you look at that one?

[travelkoen]

@QE3 (don’t really like your name, all those rumours about you mess up the charts…:58:)

coral indicator is a type of MA (moving average), picked up as part of a template somewhere and kept using it