CCI: automated systems

[TGM]

If you are good at reading indicator patterns the CCI is just fine. Although, I do know a handful of profitable traders (one was profiled in a magazine and is one of the larger fixed income traders on planet earth). None use it for OB/OS per se. They are good pattern readers and like any good pattern reader the Momentum indicator becomes a crutch to tell them what NOT to do.

Woodies patterns are NOT necessarily Woodies patterns. Those have been around a long time. Guys that use the old school 3-10-16 simple MACD also use similar patterns. They came about in the 1950's and the CCI is a more modern adaptation. The Strength of the CCI (or macd) is that they do not have a tight ob/os range like that of a stochastic.

Ultimately, price rules and indicators are like guides.

 

[Prevail]

interesting, can you post a performance report?

Quote from frostengine:

I have a complety automated system using ONLY cci that is profitable on the ES going back past 6 years...... however the way I use the cci in it, is not how you would typically use the cci.... complety out the box, but it actually works.. the system performance goes WAY up with using another indicator in conjunction with that system..... but the pure cci system is profitable....

The one thing I have learned through automated systems is your ENTRY is not what determans if your system will be profitable... its your exit... Good entry helps make your so so exit work, but the exit is where the money is...

 

[5Pillars]

Quote from frostengine:

I have a complety automated system using ONLY cci that is profitable on the ES going back past 6 years...... however the way I use the cci in it, is not how you would typically use the cci.... complety out the box, but it actually works.. the system performance goes WAY up with using another indicator in conjunction with that system..... but the pure cci system is profitable....

The one thing I have learned through automated systems is your ENTRY is not what determans if your system will be profitable... its your exit... Good entry helps make your so so exit work, but the exit is where the money is...

Nice job....that is great to hear.

 

[BrightPropGuy]

Quote from quantzack:


IMO, CCI approaches seem to give many whipsaws, but might work OK if you enter/exit long trades under "oversold" conditions using longer time frame(daily/weekly), rather than minutes.

Buying QQQQ at "oversold" CCI levels might be the basis for a decent reversal system, but it is hard to avoid those whipsaws.

 

[Trader666]

Quote from BrightPropGuy:

Woodies chat room and followers exhibit a cult-like quality...I would like to see actual audited performance from his system...Still, it does not appear to be a purely mechanical CCI strategy.

A while back I coded the ZLR pattern from a Woodie approved document that was very specific... can't find the document but here's how it backtests on 1500 stocks from 2000 to 2005.

P.S. I recall the tone of the document being VERY cult-like... basically, don't do any thinking on your own because Woodie has already done it all for you. It never ceases to amaze me how many people need a guru.

 

[Wayne Gibbous]

Geez Trader, is that chart sideways???


<img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=1203203"/>

 

[stock777]

If you lurk in the room, you will get the impression that every day is a winning day. Almost every trade is either a tiny loss or a decent to huge win.

Yes indeed, life is good in CCILand.


If nothing else Woodie gets to travel a lot, meet lots of people and say We Have No Problems 200 times a day.


He does appear to give to charity , so you have to give him kudos for that.

 

[SteveH]

If you trade the CCI, then you're the kind of person who wants to run in the same direction as a moving train to catch it before it picks up too much speed to make that possible.

If you don't trade the CCI, then you're the kind of person who has figured out how to walk onto the train and take your seat just before it has reversed course.

The fallacy of the first group's thinking is that they believe their risk of failure is less and their probability of success is greater than the second group's method of catching trains. Nothing could be further from the truth.

 

[trader28]

Woodie is a savvy old time trader that probably doesn't realise his success is due less to CCI than to experience, otherwise everyone using his method would have his success

Winning systems are a dime a dozen

Winning traders are rarer than rocking horse shit