CCI 10 pip scalping strategy

Hello fellow traders,

first of all I'd like to say that no, I am not a professional trader (yet), but I am very much pursuing it.
I've been reading alot about technical analysis and I choose it over fundamental analysis(even though it's more effective to use both)

Do please note that this strategy I'm gonna tell you about is not finished, and I'm coming here mainly because I'd like to see how other traders like this strategy and of course, opinions and improvement.


Sooo, this is what I have to offer:

Pair: EUR/USD (only pair tested)
TF: M5
Indicators: MACD (12,26,9)
CCI (14)

These are optional: 2 sets of bollinger bands, (20,1) and (20,2)
Daily pivots

Long entry:

This should all happen on the same M5 candle, EXCEPT for step 2 (which has to happen on the same candle or earlier)

Step 1 - CCI crosses +100 from BELOW (meaning CCI has to ENTER the overbought zone)

Step 2 - MACD moving average has to be below the histogram

Step 3 - MACD histogram bar needs to have a higher value than the previous bar (I use a custom MACD indicator to see this easier)

Reverse for short entry

Exit: 10 pips, or preferred method (10 pips recommended though, use demo if you want to try another exit method)

To be honest I have never used a stop-loss, but that's why I'm here, improvement for this strategy.

NOTE: I have mainly backtested this strategy and only opened a few trades on demo (all profitable with tp taken)

I use pivots and bollinger bands for possible earlier exits and sometimes they signal not to take a trade (close to major support/resistance)

ANY feedback appreciated!



The zip file attached includes the custom MACD indicator, and a template (this all for mt4)
I have added a chart in the zip with an example (there are more signals on the chart that I haven't pointed out, try n' find them lol)

If 10pips is your TP then what would be your SL ? And what is the exit method recommended ?

Hmm... Did make some profit using your strategy....
But it was in demo version....
Will try to implement in Live version with a suitable SL.

I use a similar system I found on this website:

The Profit All Day System

It has been working for me and I've been able to take profits over and over and over during a trend. The problem I've had with it is, the opportunity doesn't always arise to use it. I'm going to try yours out to see if I get more opportunities.

Do you also factor in the support and resistance levels because you wouldn't want to enter a trade at a critical level just because every rule applied? Or does this not matter as much since we are only scalping for ~10 pips

As I mentioned, I have not established a SL or any other exit than the TP.

And, as I have not been available for a couple of weeks, I have not opened any other trades. The opened trades have never been at resistance/support, so I am not sure how to handle those situations yet.

As for a SL, I was thinking maybe in a long position, the low of the previous candle? Opposite for short.
Though, the low/high of the previous candle may be more than 10 pips away, thus not maintaining the 1:1 risk/reward ratio..

Any suggestions are welcome!

@JBlack, I was also thinking about incrementing my strategy with the Profit-all-day system.
Will backtest today and try on demo when market opens

@Sree How did it go?

I`ve done a few eye backtesting and it`s looking good!!!
I`ll be trying it out as well and will try a few SLs to see what may be a good number of pips to risk!

Guys,

I programmed an simple algorithm to foward test this strategy. It takes trades whenever the conditions are met. It doesn`t read any kind of support or resisteance though.

I`m using TP = 5 pips and SL = 20 pips. (crappy, indeed, I know)
Let me know of any suggestions you guys have so we can continue testing it.

I`ll keep you posted on the results I get.

Since this morning I had 3 trades.
2 SL and 1 TP.

Trade 1: Long. The candle that gave the setup had a CCI value of +112. RESULT: SL.

Trade 2: Short. The candle that gave the setup had a CCI value of -221. RESULT: TP.

Trade 3: Long. The candle that gave the setup had a CCI value of +115. RESULT: SL.

And where you got to?