Woodies CCI trading system
- Thread starter kkeskar92
- Start date
kkeskar92 , and other senior members who r using cci system.I M also trying 2 master it.I found that AFL itself has an inbuilt facility to give alarm about pattern formed.
But it is very discouraging most of the signals are false or end up with small profits or small losses. .20 points is rare profit in nifty with this system.5to 10 points are typical. I M trying to explain it with giving an example bellow.Please clearify me how to improve .The signal 5 given asMR is not clear to me.
time trade entry exit Net-4=
11-08 VT LONG 4887 4894 7-4=3
1153 ZLR LONG 4906 4902 -4-4=--8
12-14 GB100long 4902 4906 4-4=0
1-44 ZLRSHORT 4887 4883 4-4=0
1-56 ZLRSHORT 4880 4880 -4
2-11 MR Signal not clr to me
3-02 FAMIR LONG 4884 4888 4-4=0
Total= -5
There are also some other valid entry signals that end up with losses not shown in pictures because signals disappears at last 20 second after execution of order.
I have made a slide show using document fm woddies cci club. However it is not for those who are in expert level , but those who are trying to learn
Can use it for quick reference. I shall be happy to share it with other members of forum. Here is the link http://www.4shared.com/file/223156846/2c15a7f6/CCI_Value_Lines_and_Intro_to_t.html
Those who are posting here, posts about winning trade but can u explain how do we ignore the false signals as their numbers are more.
But it is very discouraging most of the signals are false or end up with small profits or small losses. .20 points is rare profit in nifty with this system.5to 10 points are typical. I M trying to explain it with giving an example bellow.Please clearify me how to improve .The signal 5 given asMR is not clear to me.
time trade entry exit Net-4=
11-08 VT LONG 4887 4894 7-4=3
1153 ZLR LONG 4906 4902 -4-4=--8
12-14 GB100long 4902 4906 4-4=0
1-44 ZLRSHORT 4887 4883 4-4=0
1-56 ZLRSHORT 4880 4880 -4
2-11 MR Signal not clr to me
3-02 FAMIR LONG 4884 4888 4-4=0
Total= -5
There are also some other valid entry signals that end up with losses not shown in pictures because signals disappears at last 20 second after execution of order.
I have made a slide show using document fm woddies cci club. However it is not for those who are in expert level , but those who are trying to learn
Can use it for quick reference. I shall be happy to share it with other members of forum. Here is the link http://www.4shared.com/file/223156846/2c15a7f6/CCI_Value_Lines_and_Intro_to_t.html
Those who are posting here, posts about winning trade but can u explain how do we ignore the false signals as their numbers are more.
Last edited:
First of all buddy, no system based on indicators is ever perfect. Cause prices and volume are moving the indicators and not indicators. We can just have an idea and edge by using these indicators.
Secondly, that no signals are ever perfect. If they were perfect then, no body will disclose it in forum, and no body will be losing.
Thirdly, The return of the system varies from market conditions. In Choppy markets, we have less points profit. in trending we have large profits. Todays was a choppy market.
Fourthly, so far i have seen this system to be perfect then any other.
Conclusion: - Even if the day is less returning, the account shouldnt turn negative. and thats what cci helps. All you need to do is understand it, tweak it, make it best for you, and work on it.
Secondly, that no signals are ever perfect. If they were perfect then, no body will disclose it in forum, and no body will be losing.
Thirdly, The return of the system varies from market conditions. In Choppy markets, we have less points profit. in trending we have large profits. Todays was a choppy market.
Fourthly, so far i have seen this system to be perfect then any other.
Conclusion: - Even if the day is less returning, the account shouldnt turn negative. and thats what cci helps. All you need to do is understand it, tweak it, make it best for you, and work on it.
Hi GC,
You are facing exactly the same problem I faced when I first used woodies CCI.
Big question is, how to avoid bad signals ? Since price is random, we never know which is going to be the big winner and which will end with a loss. We cant be selective as that only ends with taking the losers and letting the big ones go. But we can adopt a few filters.
Biggest filter is the time frame you trade. On a 3 min TF, there will be plenty of signals while a 15 mf TF will give you hardly 3-5 signals in the whole day. The time frame u select to trade is basically a factor of your break even and the width of your hard stop. You have a break even of 4 points and that means your ideal TF is 5 min as that will give you a better Risk Reward Ratio.
If you had a breakeven of 2 points, then 2 min or 3 min TF will ensure you end with a profit at the end of the day.
Many times, a signal is generated and at the last min, it disappears. Wait for the last few seconds before pressing the trigger. A signal is telling you that a particular condition is met.
e.g. a long ZLR is about to be formed when this condition is filled,
cci (current) is greater that cci(1 bar ago)
and
cci (1 bar ago) is less than cci(2 bars ago)
It does not differentiate between a strong signal and a weak one. To him, 0.5 > 0.4 and 50 > 0.4 are given the same weight and generates the same signal.
The angle of the CCI is your biggest guide. That is measured by the difference of the present CCI and the previous one. If the difference is less that 15-20 points, then avoid the trade. CCI is a momentum indicator and unless the momentum is strong enough, your SL might get hit. If the diff is greater than 90 points, avoid the trade also, as that we dont want to chase the trend.
CZI is very important indicator. Preferably, when u see multicolors on the CZI, avoid trades all together, If u see a solid blue/brown color, then concentrate only on the long/short trending trades.
Plot the LSMA and EMA-34 on the price chart. This will tell you how strong the counter trend trade is. eg, FAMIR and VT both needs LSMA to agree with your trade direction. The angle of the LSMA and the distance of price from the LSMA are big determining factors before u attempt a counter trend trade.
EMA-34 is used basically as a trend strength indicator. angle of the EMA determines the strength of the trend. If ema is flat, expect NF to dart around the BB. If EMA-34 is 30 deg or more, then avoid FAMIR and VT. wait for ZLR to happen between 50 and -50. Avoid signals near the 100 or -100 lines as prices normally tends to wobble around that level.
Most important aspect of this system is trade management. This is how i manage my trades, I trade multiple lots. Preferably 3-4 lots. If you trade 1 lot of NF, better switch to 2/3 lots of mini NF.
First exit is determined by the range I see between the pivot high and pivot low. If nifty is trading in a range of 10 points, say between 4900 and 4910, and i get a buy signal and my entry is 4903, my first target is 4910 and i'll exit 2 lots out of 3 here. This lowers my break even to 4895 (10-3-2 = 5 points per lot x 2 = 10 points buffer-2 = 8; 4903-8 = 4895)
I then switch to hghier TF to see if buy signal is generated there. If buy signal exits, then i wait for that to give me the exit sign. If buy signal doesnt come in higher TF, then i exit when exit signal is given my trading TF.
BTW, MR signal is Momentum Reversal and that is no longer used, just like HFE is no longer used as a valid entry signal.
The reason you are not getting any 20 point trade is because your time frame is that of scalpers.
let me know if i missed out on anything....
Of course, these are just my views and i reserve the right to be wrong...
You have to judge things for yourself and then decide...
You are facing exactly the same problem I faced when I first used woodies CCI.
Big question is, how to avoid bad signals ? Since price is random, we never know which is going to be the big winner and which will end with a loss. We cant be selective as that only ends with taking the losers and letting the big ones go. But we can adopt a few filters.
Biggest filter is the time frame you trade. On a 3 min TF, there will be plenty of signals while a 15 mf TF will give you hardly 3-5 signals in the whole day. The time frame u select to trade is basically a factor of your break even and the width of your hard stop. You have a break even of 4 points and that means your ideal TF is 5 min as that will give you a better Risk Reward Ratio.
If you had a breakeven of 2 points, then 2 min or 3 min TF will ensure you end with a profit at the end of the day.
Many times, a signal is generated and at the last min, it disappears. Wait for the last few seconds before pressing the trigger. A signal is telling you that a particular condition is met.
e.g. a long ZLR is about to be formed when this condition is filled,
cci (current) is greater that cci(1 bar ago)
and
cci (1 bar ago) is less than cci(2 bars ago)
It does not differentiate between a strong signal and a weak one. To him, 0.5 > 0.4 and 50 > 0.4 are given the same weight and generates the same signal.
The angle of the CCI is your biggest guide. That is measured by the difference of the present CCI and the previous one. If the difference is less that 15-20 points, then avoid the trade. CCI is a momentum indicator and unless the momentum is strong enough, your SL might get hit. If the diff is greater than 90 points, avoid the trade also, as that we dont want to chase the trend.
CZI is very important indicator. Preferably, when u see multicolors on the CZI, avoid trades all together, If u see a solid blue/brown color, then concentrate only on the long/short trending trades.
Plot the LSMA and EMA-34 on the price chart. This will tell you how strong the counter trend trade is. eg, FAMIR and VT both needs LSMA to agree with your trade direction. The angle of the LSMA and the distance of price from the LSMA are big determining factors before u attempt a counter trend trade.
EMA-34 is used basically as a trend strength indicator. angle of the EMA determines the strength of the trend. If ema is flat, expect NF to dart around the BB. If EMA-34 is 30 deg or more, then avoid FAMIR and VT. wait for ZLR to happen between 50 and -50. Avoid signals near the 100 or -100 lines as prices normally tends to wobble around that level.
Most important aspect of this system is trade management. This is how i manage my trades, I trade multiple lots. Preferably 3-4 lots. If you trade 1 lot of NF, better switch to 2/3 lots of mini NF.
First exit is determined by the range I see between the pivot high and pivot low. If nifty is trading in a range of 10 points, say between 4900 and 4910, and i get a buy signal and my entry is 4903, my first target is 4910 and i'll exit 2 lots out of 3 here. This lowers my break even to 4895 (10-3-2 = 5 points per lot x 2 = 10 points buffer-2 = 8; 4903-8 = 4895)
I then switch to hghier TF to see if buy signal is generated there. If buy signal exits, then i wait for that to give me the exit sign. If buy signal doesnt come in higher TF, then i exit when exit signal is given my trading TF.
BTW, MR signal is Momentum Reversal and that is no longer used, just like HFE is no longer used as a valid entry signal.
The reason you are not getting any 20 point trade is because your time frame is that of scalpers.
let me know if i missed out on anything....
Of course, these are just my views and i reserve the right to be wrong...
You have to judge things for yourself and then decide...
GET THE FREE NIFTY CHARTING WITH MT4 NOW...TASTE THE BLOOD
Hi all
Now get the GCI mt4 platfotm here.
GCI trading offers trading in a variety of markets....forex, stocks, commodities.
The Indian markets have Nifty, some 10 stocks and commodities charting...get the demo account for MT4 and you can use any of 1500 metatrader4 indicators....for free.:clap:
If anybody figures out how to get the stocks charting for NSE...please let me know.
I am using paid service from fxcentral with over 500 scrips for NSE.
@GC
I use 5 min timeframe so that signals are strong and u have adequate time to react, also look at Bollinger bands, volumes, time of day, index and previous days levels of course and then take the decision. 3 min timeframe...I guess will whipsaw a lot....first 30 min ...I use 1 min timeframe only on nifty....then switch to 5 min...for the rest of day. I prefer to scalp the nifty for 5-10 points and trade the stocks for the range of day using pivot points.
Go to the link....download GCI mt4......open market watch.....right click.....symbols.....open indices folder.....select Nifty...and open the chart....you get 1 , 5, 15, 30 min charting.
Install woodies heart panel in mt4 as mentioned in my earlier posts and there you have free Nifty charting on mt4 with woodies panel.
Hi all
Now get the GCI mt4 platfotm here.
GCI trading offers trading in a variety of markets....forex, stocks, commodities.
The Indian markets have Nifty, some 10 stocks and commodities charting...get the demo account for MT4 and you can use any of 1500 metatrader4 indicators....for free.:clap:
If anybody figures out how to get the stocks charting for NSE...please let me know.
I am using paid service from fxcentral with over 500 scrips for NSE.
@GC
I use 5 min timeframe so that signals are strong and u have adequate time to react, also look at Bollinger bands, volumes, time of day, index and previous days levels of course and then take the decision. 3 min timeframe...I guess will whipsaw a lot....first 30 min ...I use 1 min timeframe only on nifty....then switch to 5 min...for the rest of day. I prefer to scalp the nifty for 5-10 points and trade the stocks for the range of day using pivot points.
Go to the link....download GCI mt4......open market watch.....right click.....symbols.....open indices folder.....select Nifty...and open the chart....you get 1 , 5, 15, 30 min charting.
Install woodies heart panel in mt4 as mentioned in my earlier posts and there you have free Nifty charting on mt4 with woodies panel.
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