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  1. #1
    Legendry Member Michael Hodges's Avatar

    The CCI Explosion Strategy ; Good Strategy, Funny Article !!!

    This strategy fits both of the mandates we have here at BOTS, to educate you on good strategy and keep things light and funny. Bogdan did the original review on this and I must say it is one of his more sarcastic and humorous to read, I mean, strategy isn't so funny on an average day.

    This strategy uses CCI, the Commodity Channel Index and focuses on trend following. It is recommended for advanced traders but can be tested by intermediate or even newbies who have already gotten started with oscillators and moving averages. To get signals moving average crossovers are confirmed by CCI with expiry of one hour or more.

    CCI Explosion Strategy

    This link goes to our review of the CCI indicator, which is the funny because it's an oscillator but called the commodity CHANNEL indicator. To help understand, it measures, in the form of an oscillator, the movement of price relative to a channel of past prices... it gives signals like any other oscillator and is a BOTS approved tool.

    CCI Indicator

  2. Thanks Ronnel thanked this post
  3. #2
    Veteran Member Ronnel's Avatar
    Hi Michael,

    I'm a huge fan of CCI. I downloaded the indicator and have replaced the normal CCI with this one and it's awesome. I trade lower expiry so I tweaked the CCI's setting to my setting and it still works. It does give some false signals which is normal to all indies but since I don't follow signals to trade but use candlestick analysis, the fake signals really don't bother me. Actually even with my setting it still is quite accurate but the best thing I love is it's 70's disco like colors. It brings back good mirror ball dancing memories. This indie is a keeper!

    Many thanks Michael!

  4. #3
    Legendry Member milos's Avatar
    Nice strategy. H1 time frame expiry my favorite.

  5. #4
    Legendry Member Michael Hodges's Avatar
    Quote Originally Posted by Ronnel View Post
    Hi Michael,

    I'm a huge fan of CCI. I downloaded the indicator and have replaced the normal CCI with this one and it's awesome. I trade lower expiry so I tweaked the CCI's setting to my setting and it still works. It does give some false signals which is normal to all indies but since I don't follow signals to trade but use candlestick analysis, the fake signals really don't bother me. Actually even with my setting it still is quite accurate but the best thing I love is it's 70's disco like colors. It brings back good mirror ball dancing memories. This indie is a keeper!

    Many thanks Michael!
    That's really awesome commentary, truly. Thank you! This is the kind of thing we need on all the strategy threads.

  6. #5
    Veteran Member Ronnel's Avatar
    Quote Originally Posted by Michael Hodges View Post
    That's really awesome commentary, truly. Thank you! This is the kind of thing we need on all the strategy threads.

    I have also been using a very similar setup where I use the normal CCI and xpMA (thank you Bogdan). Because of the similarities of both strategies, I would like give my comparison. Since I use smaller TF, I had to use a faster setting but the strategy is still very similar. Comparing xpMAs are similar to your strategy and to mine. The big difference is on the CCI. Your Disco-Tech CCI beats the normal MT4 CCI hands down. The normal CCI gives signals at overbought and over sold areas but your Disco-Tech CCI gives quite accurate signals even at areas where I wouldn't normally take the trade. Like signals at 25%,30%, 65%, etc. I did some back testing and found out that the signals that happen on dangerous areas are usually supported by candles that are engulfing, and as we all know that usually trend continues after an engulfing candle has happened. The signal grows more stronger when xpMA and Disco CCI both gave their signals at the same area. The only filter that we should be cautious of is that sometimes both signals happen going towards S/R where the lines sometimes gives an early twist in preparation for the upcoming reversal.

    I did some back testing yesterday on the CCI and immediately took 2 live trades that ended up ITM. The new CCI indicator didn't scare me since I have been using normal CCI regularly so I'm very much at home with the strategy. The 1st trade I took was near Support (BUY), but the 2nd trade I placed a BUY at Resistance because of the CCI's signal plus there was an engulfing and I felt that the trend will continue for another 3 to 4 candles and I was right. Normally it would have scared me to place a BUY near Resistance but the Disco CCI's extra confirmation gave me the courage to take the trade. The two xpMA's on your strategy acted like Rainbow Strategy which is again one of my favorite.

    Comparing my old strategy with yours, I can honestly say that your strategy is a lot better than mine. I will still do some back testing but to be honest, your Disco-Tech CCI is like love at first sight, HAHAHA!

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