I would prefer that you verify the strategy. Why don’t you demo it for a few weeks, and make your own decision?
strategy is important but the main thing is, there is no trading strategy which not works for all time.
So true. Expecting 100% accuracy from a strategy is not realistic. Provided winning trades are able to absorb losing trades, and the win/lose ratio is reasonable, then a strategy can be consistently successful.
Been looking for a good swing strategy and this looks like a great fit.
Two quick questions, well one in two parts. Stop Loss above/below the EMA generally (Based on sell/buy respectively)? Take profit based on personal risk management strategies/comfort level/time frame to hold trade?
Thanks for the detailed explanation and nice strategy.
Thanks for the feedback. I set my stop-loss at previous high/low, as the case may be, plus/minus a 14 period ATR. I don’t use the EMA for stop-loss, but it’s an option you might prefer. The main thing is capital protection. I generally don’t set a take-profit, as I prefer to trail my stop-loss until triggered. This can often maximise trade potential…but sometimes it cuts it short!!!
Hi - I love this strategy & will be demoing it over the weekend.
Can you explain a little bit more around using the ATR to set a Stop/Loss please? I don’t see it on the charts in your examples and I am struggling to see the correlation between the ATR and a price to set the Stop/Loss
Thanks in advance!!
Got it - thanks for taking time to show some examples
No problem at all.
NZDJPY looking good for a buy:
IMPORTANT UPDATE: Commodity Channel Index
The strategy period setting for the Commodity Channel Index has changed from 7-periods to 14-periods. You may continue to apply the 7-period if preferred, however, the switch to a 14-period setting aims to slightly delay trade entry and improve signal quality.
This could be a quick profit:
This is a sensible variation on a profitable strategy. I use a similar approach off the daily charts except I never ruse any off-chart indicators, so CCI is not in my toolbox.
But I’m open to being convinced - is CCI absolutely necessary? I assume its in the strategy because its possible to see the other criteria all lined up but CCI says stay out and this avoids a low probability trade that would more likely be a loss?
In practice do you see CCI adds benefit?
I have been wondering the same. As I mentioned in an earlier post, I have never used the CCI so I don’t know either. But I have been looking at it the last few days but it hasn’t set me on fire yet.
I was interested in the comment that it’s value has now been moved from 7 to 14. I had already done that from just my initial studies!
But, like you, I don’t usually use any indicator that is off the price chart a) because they are often superfluous and b) I forget to look at them!
I thought so. For me, anything I add to my ultra-stripped down TA has to pay for its place.
Hello SovoS and tommor.
Interesting and valid discussion re CCI (and other off-chart indicators). So I’m not the only one that forgets to look at them!
For me, CCI is all about improving and confirming entry timing (hence the change from 7 to 14 recently). That said, Stochastic, RSI, etc., could achieve the same aim, so it’s a personal choice.
Does CCI add benefits? I use CCI in tandem with price breaking the previous high/low, as the case may be. A CCI signal is valid if price breakout agrees, and/or a price breakout signal is valid if CCI agrees. Helps filter the actual entry point. For example, the GBPCAD trade alert yesterday had been brewing over several price bars before the eventual signal was given at signal (3):
Thanks for the details. I understand the confluence here and that is a good aspect to have. My “problem” would be that if all the other parameters such as the line slope and breakout look good, I would probably override the CCI anyway if it didn’t happen to also confirm the move! That is the only reason why I don’t place a great deal of value on it. But, like you say, everyone is free to tweak what seems appropriate without actually corrupting the core principles here
One other question came to mind here. How precise are you about which bar the signal bar is compared to? Is the breakout always just from the high/low of the previous bar? And do you expect the CCI to move through the 100 level on the same bar or do you consider it still valid if it moved through the 100 level already a few bars earlier or even after the next bar?
Weekly Review: A little scattered this week, but still a positive outcome:
Has to be the same bar, otherwise it’s subjective and open ended. How many bars is too many or too few? Can it change from one signal to the next? For me it has to be rigid and fixed. Cheers!