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CCI Spike Trading System
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| Added: January 26, 2007 |
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MetaStock, system
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This system uses the momentum Commodity Channel Index (CCI) indicator to find
short-term bottoms in the market. The CCI indicator is extremely volatile and
is generally difficult to use when trading the S&P 500 Index.
We, however, have turned this volatility into a trading advantage by using
the spread or gap between the CCI index and its moving average as a reversal
signal. Specifically if the gap is larger then a certain percentage and CCI
indicator crosses above its moving average we buy the market. The system remains
in the market for a short period of time, exiting the trade as the indicators
cross to the downside. As designed, this system only trades long the market;
it can however be altered to short the market. It is best used in choppy bullish
markets similar to the 1995 bull market.
Trading Tactics: This short-term bullish trading system exploits over extended
markets. Futures, options, and mutual fund traders should take full advantage
of this high probability trading system, either by taking outright positions
or avoiding declining markets. The code for this system can be reversed to trade
short positions. This system should be used in place of longer-term momentum
systems in strong bullish choppy type markets. This system rarely exits at the
market intermediate peak, so other exiting signals may be used in place of our
indicator crossover technique.
Code:
CCI Spike Trading System
Enter long:
Ref(CCI(13)/(Mov(CCI(13),3,S)),-1)>1.5 AND
Cross(CCI(13),(Mov(CCI(13),3,S))) AND
Ref(CCI(13),-1)<-25
Exit long:
Cross((Mov(CCI(13),3,S)),CCI(13)) AND
Ref(CCI(13),-1)>200
Code to difficult? Find somebody to help you with coding here.
Source: http://www.guppytraders.com
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