Commodity Channel Index (CCI) Trading Strategy

Commodity Channel Index (CCI) Trading Strategy

Strategies Hits: 2445

 

Hello, folks today I want to show you a strategy based on Commodity Channel Index (CCI) Indicator.

 

What is the Commodity Channel Index (CCI)?

 The Commodity Channel Index​ (CCI) is a momentum-based oscillator used to help determine when an investment vehicle is reaching a condition of being overbought or oversold.

 

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Developed by Donald Lambert, this technical indicator assesses price trend direction and strength, allowing traders to determine if they want to enter or exit a trade, refrain from taking a trade, or add to an existing position. In this way, the indicator can be used to provide trade signals when it acts in a certain way.

I will use the simple rules for the strategy:

KEY TAKEAWAYS

-IF CCI -140 ENTER LONG, IF LAST 5 HIGHS OF THE BAR BELOW EMA 20
Enter long position
-IF CCI ABOVE 140 ENTER SHORT, IF LAST 5 LOWS ABOVE EMA 20
Enter short position

STOP: 1000 USD
TAKE: 5000 USD

Instrument BTCUSD

 

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This is how automated strategy is looking on the chart.

Now let’s make some magic with backtesting of the strategy.

 

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As we see above during 2 years of trading strategy made over 32k USD. We can’t say that the equity performance was perfect,                                                                                                                but at least strategy showed a profit in these difficult market conditions.

Lets look at Performance summary ($)

 

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As we see above simple strategies are exist !)

The best trading strategy in the world won’t do you any good if you allow emotions to trump logic

 

PRICE: 70 USD

 

Pls contact us:  This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

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