on the basis of the DIU display with 20
trading strategy on the basis of the DIU display with 20
Technical Indicator Commodity Channel Index (Commodity Channel Index, CCI)
measures the deviation of price from its statistical mean. High index values ??indicate that the price is unusually high compared to average, and low - that is too low. Despite the name, Commodity Channel Index is applicable to any financial instrument, not just for the wares.
There are two basic ways to use the Commodity Channel Index:
1. To search for differences
divergence occurs when price reaches new high, and Commodity Channel Index can not grow above its previous highs. This claCCIc divergence is usually followed by the price correction.
2. As an overbought / oversold indicator
Commodity Channel Index usually varies in the range of ± 100. Values ??above 100 indicate an overbought condition (and the probability of correcting decay), while readings below -100 - an oversold condition (and a correcting increase).
This vehicle we use in the second major way. The period of a turkey 20 calculation - taypikal price. The principle is based on the vehicle entry on the probability of the birth of a new trend or a small correction. Also set the standard indicator ZigZag - in this TC is used for the production of Stop Loss. WORKING H4 timeframe is used as It is most optimal in terms of: low noise and the ability to hunt medium-sized (50-150 n) and large (150-400 n) trends. Working tool, I took the Eurodollar, can anyone else, but have not tried it.
Algorithm Trading Strategies (TS)
Log: croCCIng the line from top to bottom USMS 100 - SELL, bottom-up 100 - BUY.
Output: if the transaction is to increase - the intersection of top-down level of 100 or line returns back into oversold territory (below -100), a deal for a fall - on the contrary.
Take Profit - do not use it because it is difficult to optimize the figure for the market.
Stop Loss - local top or bottom, depending on the indicator ZigZag + 35-40 points in the direction of loss, some protection from market noise and shadows.
often absent in the market starts bright and pronounced trend in this line begins to beat the FID in the range from -130 to -70 and 130 +70. My vehicle starts in such situations, "merge".
Rule works when re-croCCIng:
1) If the FID line touched the + -100, crossed and went back to the area bought by / pereprod
2) We have the right to go again, only if that line will make the FID (forms), "hill" or "mound" with a base level + 100, then at peresenii line FID + -100 levels entering in the market, then pull the deal or go back to Step 1.
This rule strategy during the second croCCIng is advantageous in that the market comes to ranged and intersections can be repeated from 2 to 7, which is about 100-400 points of subsidence of the deposit.
3) If the hill is not formed, then you can only enter at the intersection of the reverse zone.
Thus, algorithm trading strategies we studied.
Example: crossed the line FID down the level of 100, the price went down by 30 n, the line took the FID value +67,567. Further there is a market surge, the price has risen by 70 points. USMS line during the bar back has crossed the level of 100. Then the market turned around and went down by 170 points. Located at the monitor, we can close the deal at the intersection of the line-level CCI ago.
This example follows the rule strategy: WHEN WE HAVE THE RIGHT DEAL pull CLOSE ONLY AT THE CLOSING OF THE BAR, IF LINE CCI are not logged COUNTER AREA.
MAIN STRATEGY: DISCIPLINE AND CLEARLY BE BOUND BY RULES OF THE STRATEGY.
MM in the TC: fractional-proportional method by Ryan Jones.
formula for calculating the increase in the delta: maximum drawdown for 3 months = current delta increase, calculated each month, reducing delta = 1 / 2 * delta increase.
Example: early March, look for maksprosadku December, January, February. Maksprosadka January and was equal to -165 points, while in March, working with the delta increase = 165 points and delta reduction = 83 points.
initial lot 10%, can increase to 25%. When months of highly volatile, rising to 20%, at the discretion of the trader.
Use this strategy at your own risk. Forex-Utility.com not responsible for any damages that may result to you when using any strategy, presented on the site. It is not recommended to use this strategy on a live account, without testing it to start a demo account.