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Daytrading - How to make a profit

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NQ..last example of the 50 cci for this evening. Promise :)

night all

ac
;)
 

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nice chart acouch, cheers for that! looks very useful, nice & simple, clear signals

interesting post of Waynes with the sharpe stat - I guess it has to be that way with day/short term traders, you'd soon be flushed out if you weren't on top of it
 
acouch said:
NQ..last example of the 50 cci for this evening. Promise :)

night all

ac
;)
Click to expand...

Keep them coming acouch,

Very neat, clean & simple system whick looks like it does the trick very nicely.

Which software & data source do you use for your charts? What time frame are you trading to?

Cheers
Joseph
 
Joseph,

I dont use time charts very often, either range, volume, or tic is what i tend to use...

if you look on the charts posted you can see what i have used on each chart...
not all trade with the same ..what suits one might not suit another..

enjoy your day

Adriane

;)
 
acouch said:
Joseph,

I dont use time charts very often, either range, volume, or tic is what i tend to use...

if you look on the charts posted you can see what i have used on each chart...
not all trade with the same ..what suits one might not suit another..

enjoy your day

Adriane

;)
Click to expand...


Cheers Adriane :)
 
Hi Adriane,
Just came across your post. Nice to see someone who uses indicators as a basis for their trading. I've used them for most of my trading life and just could not do without them

I have tried using just price and volume, but it just does not work for me - its much easier ans faster to use an indicator to detect possible trades.

The CCI is one of my core "tool box" indicators, and I personally find its accuracy well above average. (I use a 14 perioid CCI for share trading)

For those who may be interested - here is some information regarding the CCI and how it may be used.

Commodity Channel Index
This measures the variation of a securities price from its statistical mean.
Its greatest value lies in its ability to identify when prices move beyond their normal range and begin trending

Advantages in using the CCI
Cuts out lag.
A powerful characteristic is its responsiveness toprice action, especially at tops and bottoms. Rarely does the indicator turn more than one day after a price turn
Identifies changes in trend
The CCI should confirm price action. When price makes a bottom/top and turns up/down, the CCI should also make a bottom/top and turn up/down. But when price makes a higher high and CCI makes a lower high than its previous peak, it creates a non confirmation between price and indicator (opposite for lows)
These non confirmations are called divergence and may warn of a trend change
Identifies possible peaks in price.
When the indicator gets to extreme levels, this could indicate that the price may be nearing its peak

Trading signals
Aggressive
Buy when CCI crosses up thro -100 and exit when it crosses down below +100

Intermediate
Buy when CCI crosses up thro zero, and sell when it crosses below -100

ConservativeWait until CCI moves outside of its upper channel line - because that is when price has probably shifted from its normal range into a trending mode
Buy when the CCI crosses above the +100 line and exit the long position when the CCI crosses below the +100 line

I hope other readers find the above useful

Have a good day
Peter :)
 
I made a boob in the above post (rushing for lunch)
Correction
Intermediate
Buy when CCI crosses up thro zero and sell when it crosses below +100 (or zero)
Conservative
Same exit ie when it crosses below 100+ (or zero)

I trade EOD (maybe this post should not be included in this "thread"?)

I use the above as part of my breakout trading setup - it gets me into the market early, I'm usually in a few days before the normal breakout characteristics are evident ie turning up of std dev indicator/expansion of /volume etc. - ie while the market is still non volatile "quiet"

I use the CCI exits as a guide, my normal exit is based on an ATR multiple, trailing stop.

Peter :p:
 
Afternoon Peter,

I see you use the 14 cci for trading stocks eod.

have you tried the 20 cci for eod stocks, that cuts out some noise.

have a great day

Adriane

;)
 
acouch said:
Afternoon Peter,

I see you use the 14 cci for trading stocks eod.

have you tried the 20 cci for eod stocks, that cuts out some noise.

have a great day

Adriane

;)
Click to expand...

Hi guys, have any of you back tested these CCI methods and if so what are the results?

Cheers,
 
acouch said:
Afternoon Peter,

I see you use the 14 cci for trading stocks eod.

have you tried the 20 cci for eod stocks, that cuts out some noise.

have a great day

Adriane

;)
Click to expand...
Agree AC.

Considering the construction of the CCI is based around the volatility corrected relationship of the typical daily price to a simple moving average, 20 is a more sensible setting.

fwiw

Cheers
 
CanOz said:
Hi guys, have any of you back tested these CCI methods and if so what are the results?

Cheers,
Click to expand...
It would be pretty tough to code I reckon CanOz. I'd be interested to see if anyone has done it accurately as well.
 
wayneL said:
It would be pretty tough to code I reckon CanOz. I'd be interested to see if anyone has done it accurately as well.
Click to expand...

I only thought to ask because of the EOD use.

Cheers,
 
CanOz said:
I only thought to ask because of the EOD use.

Cheers,
Click to expand...
Basically, Indicators used in a mechanical sense suck. There are a few here who have backtested every indicator known to man, mechanically. Nothing works.

Do indicators have a use? In my opinion they do.

1/ They are useful scanning tools to bring up trading candidates based on one or another indicator criteria.

2/ For discretionary (but rule based) traders, they can help to interpret the raw price data. I always have an indicator on my charts. Normally they just add a bit of colour, but sometimes I may look at the indicator as a secondary reference, sometimes as a crutch to make a trading decision. (Yes "a crutch". Know thyself. :eek: )

3/ There are even traders who trade off indicators only without reference to the price at all eg Woodie and some of his minions. But these people have become inventive in interpreting the indicator they use. No "standard" uses.

The upshot of all this is that the trading signals become somewhat arbitrary, even if based on some method or rule set, but makes it impossible to backtest.
 
Peter and Adriane

what other indicator you have in your toolbox ?

thanx for the CCI, it been great learning from you all.

cheers.
 
wayneL said:
Basically, Indicators used in a mechanical sense suck. There are a few here who have backtested every indicator known to man, mechanically. Nothing works.

Do indicators have a use? In my opinion they do.

1/ They are useful scanning tools to bring up trading candidates based on one or another indicator criteria.

2/ For discretionary (but rule based) traders, they can help to interpret the raw price data. I always have an indicator on my charts. Normally they just add a bit of colour, but sometimes I may look at the indicator as a secondary reference, sometimes as a crutch to make a trading decision. (Yes "a crutch". Know thyself. :eek: )

3/ There are even traders who trade off indicators only without reference to the price at all eg Woodie and some of his minions. But these people have become inventive in interpreting the indicator they use. No "standard" uses.

The upshot of all this is that the trading signals become somewhat arbitrary, even if based on some method or rule set, but makes it impossible to backtest.
Click to expand...

Wayne, aside from Pivots, what other tools do you like to use in trading commodities?

Cheers,
 
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