Trading Woodie's CCI ;-)

Discussion in 'Strategy Development' started by Remiraz, Feb 3, 2005.

  1. Remiraz


    I took a 3 mths break from trading to do some time wasting activities and thus has forgotten why I stopped using Woodie's CCI.

    Recently I papertraded it for fun for abt 2 hours using on EuroFX just to remind myself.
    Attached below are the false signals I get during my little adventure.

    This exercise was meant to serve only two purposes:

    1) Hightlight that Woodie's CCI signals are like any other indicators (MACD, MA Cross etc) and are prone to false signals.

    2) To allow veteran CCI traders a chance to explain how a trader could still trade Woodie's CCI.
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  2. Remiraz,

    You've already come to the conclusion that Woodies CCI doesn't work for you based on your past posts.

    You've also come to the conclusion that traders using CCI successfully don't seem to be using it the way Woodie is using it based on your past posts.

    However, in your most recent analysis you only mention the false signals you got...

    Can you tell us the specifics of the number of trade signals you got in those 2 hours via the following:

    * Losers versus Winners

    * Losses versus Profits

    * Any other stats you kepted

    If you consider this type of researching, testing or analysis...

    Valid enough to have a discussion about ???

    Out of curiosity...

    What chart interval did you use and what was the date/specific time span of those 2 hours you got false signals via Woodies CCI ???

    Another question...did you modify Woodies CCI method in anyway ???

    In other words...are your results via exactly the way Woodie himself trades it or via someone's interpretation of how he trades it ???

    My point with the above...I've heard about others writing articles about Woodies CCI method but I haven't seen anywhere anything posted as a trading plan from start to finish by Woodie himself.

    CCI like any other indicator has hundreds of ways of using it and Woodies way isn't the only way.

    With that said...

    No offense...if I can't figure out how to get something to work via one way but know that traders that are using it profitably via another way...

    I would rather spend my time researching those other ways of using CCI instead of getting fixated on a method I don't believe works (Woodies way).

    The use of the word fixated is only because you keep bringing up Woodies CCI but I don't think I remember you discussing the specifics of any other CCI method.

    Further, I think I've seen at least a dozen different ways of using CCI being discussed by others in the time span I've been a member here at

    The above leads into my last question...have you spent any time researching those other ways of using CCI ???

    Just don't forget...false signals or losses are part of trading.

    No holy grail out there, no perfect method (no losses).

    Good trade management plan with 50% winners and 50% losers...

    Will be very profitable overall regardless if your using CCI via Woodies way, CCI via someone elses way or using any other indicator (canned or customized).

    P.S. To the moderator of this thread (Richtrader)...

    Maybe this thread should be moved to either the Technical Analysis or Strategy Trading thread.

    However, if the next few pages are a flame-fest...quickly throw it into the Chit Chat cellar like all the other Woodies CCI discussions :D

  3. mhashe


    Sorry to hear Woodies system is'nt working for you. I incorporated woodies CCI system into my own and I must say my trading has inproved dramatically.

    Maybe it's not the system you need to work on, you need to analyze yourself and find out why your trades are'nt working out.
  4. Yep. I have to agree. If it wasn't working for me. And then it still wasn't working for me. Would I write about it.

    Hmmm. Isn't one of the facetious definitions of insanity to keep doing the same thing and expect that the outcome will change?

    Best wishes for your future trading :)


    PS Not sure if you have found it R, but u might enjoy
  5. Throwing down the gauntlet is not exactly the best way to get people to help, but I doubt thats what your looking for anyhow.
  6. Remiraz


  7. if woodies cci doesn't 'speak' to you. go try something different. it doesn't matter if the way woodie uses it works for you or not. that isn't the issue, and i'm sure woodie himself would agree. The issue is, what/how are YOU going to trade it.

    with that said, in the beginning, as you are learning woodies is indeed BEST to try and follow it as HE would. Eventually you will find how it best fits you, which will necessarily be different from his style.

    profitable permutations of trading are limitless. Here's what you need to make money:

    1) a 2:1 RvR with @ least a 50% success rate (obviously less success rate requires greater return/reward)
    2) a 1:2 RvR with @ least a 80% success rate (obviously a smaller reward requires a greater success rate)

    ok, so now that you know you need those two things, all you need to do if find SOMETHING out there that will give you one or the other result.

    I use woodies cci to do this. and i only use the cci... it's all in how YOU see the chart and interpret it.

    it's like arguing about the right way to boil water. Well, first you can fill a pot of cold water, OR you could fill the pot with hot water, OR you could use a small pot, OR you could use a large pot...but the end result is you have to put the water in a pot, over the heat and let it come to a boil. WHO CARES how you do it?
  8. I spent a long time looking at Woodies CCI about a year ago, and couldn't make it work at all for me. I then continued (more profitably) with the other 2 types of trading I was doing before that, and after trading now for a total of 5 years (and making a living for the second half of that period) recently found an interesting discussion of Woodies system again at another site (MoneyTec) where people I trusted and believed were trading it successfully on 15-minute and 30-minute Forex charts. So I decided to have another look, and after reading everything again I've now done more than 100 trades (demo mode, not real money) with it, taking with-the-trend trades only on 15-minute Forex charts. The results are completely useless.

    I'm increasingly surprised that some people purport to be making a living trading this "system". It seems to me to be no better than random (in fact worse, if anything).

    I suppose it's possible that there are a lot of subtle nuances with the thing that make the difference between loss and profitability, but require a huge amount of experience to understand. What I find baffling is that anyone should ever get as far as acquiring such a huge amount of experience with a system which (to me) shows absolutely no sign whatsoever of working or even of being based on anything realistic.

    Of course, I'd absolutely love to be proved wrong about all of this. But I suspect a lot of other people would too, and it doesn't normally happen.
  9. Remiraz


    It seems that way to me too.
    During flat or no-volatility periods it still gives plenty of signals....which makes it suspiously like RSI, STOCH, MACD or MA Cross.
  10. the only way you will be proved wrong is if you prove yourself wrong.

    no one can prove you wrong.

    and to ramirez...yes that's absolutely true. it DOES give false signals in flat market periods.

    you know what i do during those times? I DON"T TRADE.

    don't trade flat markets, don't trade chop. simple to avoid those losses now, isn't it?
    #10     Feb 3, 2005