As mentioned in my earlier posts, I have started learning CCI (with Jeff's inspiration). Spotted one this morning, ie upon completion of a magenta bar with entry dots on the CCI chart to confirm. Note: I added a CCI Forecaster indicator which I found last night. Really cool as it came with a strategy that will trigger different WoodiesCCI pattern trades.
For me, it's too advanced to turn on the strategy (after going through the NJ thread twice). I only want to start learning a few trade patterns say Zero Line Reject and Ghost (similar to Head & Shoulder ones). I watched 5 webinars last night and learned Ghost = Head & Shoulder - gosh!
My weekend challenge is to find out the information on the CCI Panel .. all the numbers and % etc etc PLUS reading some pdf documents on patterns .. will stay with maximum two .. my petite head cannot cope with more ...
You will be able to locate the strategy (6.5 only) using Descending filter .. first one on the top since it starts with Woodies. Another place to learn Woodies CCI is to join the following Club (it's free):
Thanks David for the link. My eyes tripled as soon as I see the video clips on the different set ups!! I love v-clips as the instructors would talk and demonstrate - my preferred learning style.
I spent some hours going through some threads .. finally learned what the numbers on the CCI panel stand for (still missing one or two). Well, I don't really understand how to benefit from them. My guess is: they focus on the CCI indicator and not the price bars ... so it's better to have the H/L etc on one spot.
I really appreciate your sharing the link. It will make my learning easier. I would like to add 1-2 more set ups to my trading tool box. I did not have many Inside Bar trades this week. Can't survive with 16 ticks/week "for long" in real life though it's a good start.
You are welcome. There are many set ups on that website including market profile and all sorts of things. I don't know if you want to use indicators or not, but most of the stuff on that site does involve indicators. I found that odd since the site is called trading-naked.
In reading your journal I see you post market profile numbers such as VPOC's. I think at one time you were looking at the Universal Method on Enthios.com. Weren't you?
I think inside bars are of value, but I'm not sure I understand why the Three Setups uses a 15 minute chart. I have not read the thread, so i can't say I know much about it. I would say that if you are trading CL and taking a trade off of a 15 minute chart that that is a big time frame in my opinion. Also, if you are trading CL I would think one should be able to yield more than 16 ticks a week.
I added a chart with some CCI setups. A couple things to notice. The zero line is basically the 34 EMA and the CCI is basically mimicking price. At least I think so. Doesn't mean can't use the indicators just something to notice.
I hope it helps.
Last edited by David_R; July 16th, 2010 at 11:19 PM.
Reason: Added chart with some setups
The following user says Thank You to David_R for this post:
Big Big Big Thank You to You David for preparing a CCI chart for me. The trade set ups do help my ZLR learning. I watched a few v-clips last night from the trading-naked website. Better than reading pdf LOL though I will need to watch them again.
Yes, I once considered the Universal Method. Unfortunately, I was unable to figure out its 2-R timeframe and how to program the slow/fast stochs accordingly.
For the three set ups, Jeff has experimented with different timeframes and the 15 minutes one stands out to be the most consistent and profitable. I did not generate many ticks "yet" as I am doing only 1-contract trades, focus on Inside Bar set up mostly, SOH 15 minutes before and after any major news, seldom trade in the afternoon .. + occasional goofing up ... ...
Certainly I'm tempted to break the news rules when my sim-traded auto strategies (Inside Bar only) have been generating over $500/week for the past 3 weeks. I have to confess that it did come to my mind. I chose and still do .. to follow the news rules. It's very important to build a good foundation (mentally) and be a disciplined trader. Else I will be lost and inconsistent again!
For Inside and Outside Bar set ups: only need to focus on Panel 1 (excl the SMAs and EMA). I may remove the average lines after the next review.
For Reversal trade set up, need the volume and Divergence indicators. Not sure about the SMI5 on Panel 3. Since I have not placed the first reversal trade as of this moment, I will leave the chart as-is until the next review.
ii. TF 5 minutes Chart
No change necessary. I must confess that I haven't been looking at it for most of the week. It triggered once or twice and unfortunately I was either occupied with CL or it's close to news.
iii. ES 30 minutes MP Chart
No change necessary.
iv. Other CCI Continuation Charts
They're for my learning purposes and not part of live trading yet. May make changes on-and-off during the exploration stage.
2. Trader's Performance
i. Fear Factor
Not sure if it's because I had minimal Inside Bar trade opportunities, I do not feel it anymore .. Just a little excitement when I prepared the Stop orders. Time will tell.
I do not consider myself a "patient" person. Last week's training has made me close to one!! I'm glad that I did not violate the SOH rule while waiting for release of an important news.
iii. Money/Trade Management
I realize the challenge of doing 1-contract trades. Have adapted my PT/SL strategy accordingly. I am still a little confused on managing or accepting a full SL if and when it happens. If a trade does not look good anymore, say a. close the position at 20 SL now or b. wait for it to move another 10-15 ticks to hit the full SL?!! I know there're times when it's just 1 tick shy from the full SL and reverse. Hmm, if I do choose to exit early at a loss and accept the reality that the trade may reverse and hit my PT, is it an acceptable practice? To me, it's better than having the full SL got hit. I know there're always camps of different strategies. For example, always small losses while some don't mind big losses and big winners.
Guess there's no right or wrong. It's up to the trader to set his/her own rules and simply be consistent following them.
3. What's Next?
i. I am learning the CCI set ups and hoping to have 1-2 new trade patterns in my trading toolbox.
ii. I may do 2-contract trades in the coming week .. still mostly 1-contract ones. Maybe 2-3/week as a start when I feel the time is right.
iii. TF semi-auto trade
I only did 2 real ones in Jun (when I was sim-trading most of the time). From what I learned from the WCCI room and webinars, they suggested going for 10 ticks/1st PT with a 15-17 ticks SL. I like this idea and may consider 10/17 combo when the next TF semi-auto trade opportunity comes up.
That's good for the weekend review. Lots to work on and improve I know. To me, awareness is very important and I am going to tackle them one by one .. smile ..
Take care and continue enjoying your weekend.
The following user says Thank You to wgreenie for this post:
I appreciate the detail of your posts, but I have to ask -- why add another pattern (CCI), you've already got a lot of different setups.
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The following 2 users say Thank You to Big Mike for this post:
Yeah, I was kind of thinking the same thing. Pick one setup, master it, then look for others. You seem to be a student of all but master of none. No offense to your trading abilities, I'm just making a point with a cliche.
I think, in her defense though, that maybe she hasn't found setups that she's comfortable with or that meet a trading style that she's looking for. I know I've certainly spent several hundred hours "shopping" different setups only to find that they're not what I'm looking for, not because I can't make money at it, rather, it doesn't meet my profile, such as, it requires too much screen time, or too much subjective analysis (like Elliott Wave and Fibs), or requires too quick and exact of an execution, or has good win rates but with poor risk/reward ratios, or has great risk/reward ratios but the win rates are too low, or requires proprietary indicators, etc.
The first setup I committed to was fading gaps, after trading it manually for 6mos and automatically now for 2+ months. I think I have a good handle on how to trade gaps, and I'm content with it, but I want more signals because I only take about 4-7 gap trades a month, so I look for other setups that might give me more frequent signals. Recently I've decided to master the inside bar, when it works best, when it fails the most, in what contexts do they work, the best money mgt strategy to use for them, best instruments and best times of day to trade them, etc.
I think if you're going to be great at anything you have to specialize and focus your efforts, earn a PhD in market profile, or CCIs, pivots, fibs, S/R, volatility squeezs, trend trades, reversals, price action, volume delta, waves, or whatever, but you just need 1 PhD.
The following 4 users say Thank You to shodson for this post: