Scalping trading system CCI based

Hello everyone,

This will be my contribution to this site.

It's a way to thank the amazing job done by all main contributors and stuff from FF. I have learnt all I need for achieving my goal of complete financial freedom right here, for the technical part of my work. For the basis I warmly recommend Babypips and the progressive levels proposed.

First of all, I going to publish my personal system, that works best with me and my personality and that I create for my own purpose.

I will talk about the MM before viewing this easy and simply system CCI based with explanations, graphical examples for entries and exits.

Secondly, I'll publish every day a trade that could be followed by the trade explorer created mainly for this thread, named Centurion 13'th. This TE is linked to a demo account.

And the last point, I invite all of you to participate, having a proper language and a responsible attitude. I would like to see here technical points of view and propositions.

I wish you many green pips,

Ioan

UPDATE: After years of fights with the charts, one recommendation: secure your profits by trading on higher timeframes. At 4h, the result is above 99% of succes.

Looking forward and see what system you have

Hello,

Thank you zolando and thank you tradur for your interest.

Let's start with some notes, just for memory.

1/ Trading is not an activity that suits for all of us. Some people are just not able to trade for different reasons. Lack of self control, concentration, not enough educated for trading are ones of them.

2/ Trading may involve financial losses. There is no perfect system, no holy grail.

3/ Knowledge is everything. Master your system and master yourself.

It was important to me to remind these points before talking a little bit about a philosophy of life.

And now, let's start with the reason that give us the energy for trading. There are some important questions and we have to find the right answers before looking forward.

Why do I trade? I think that if I'm here, on FF, it's for living. I want to be free and have the life that I'm able to offer to my family and myself.
There are others answers: for fun, for a second income. I'm going to consider in this thread only the situation of someone who trades for living or who wants to achieve to this goal. The others traders should adapt in accordance with their own goals.

What are the financial capacities that I could mobilise for trading, without becoming a danger for my family and myself.
Here, we have several different answers, starting with someone who is living in Europe, in North America, Japan, Australia, New Zealand and others developed countries where the cost of live is higher and where without at least 2000$/ month, in my humble opinion, it's impossible to be free from the financial point of view and other parts of the world where it is possible to live with a smaller income. We are not talking at all about people with hundreds of thousand of dollars of initial investment.

What do I have to know before starting: it's easy to answer and in the same time so difficult to get the level requested and master the trading.
As I mentioned in my first post, for the basis you could start with Babypips.com.

Three questions further and for me there were already some years between the moment when I started to think living from trading and the moment when I really started to do it.

At this stage I consider that all traders who are reading and answering this thread know the basics.

My next point will traite about my money management approach and , if I will have the time, after my day trading, I going to start to explain this simple system based on CCI.

Waiting tomorrow, let me know what are your points of view about what I wrote this afternoon.

I wish to all of you a nice evening and see you tomorrow.

Ioan

look forward to your system

Hi Ioan,

Thank you very much for this threat. I'm really excited about the details. My goal is to earn enough money on monthly basis for my family. For me 2000 monthly would be more than enough. I'm trading since many years, but so far I couldn't manage to earn regular money from this market. I will follow your posts and hope that I can learn a lot

How long are you profitable with your trading?

Hi,

Thank you for your interest

Hi,

That's almost 6 years, but not with the same system and not with the same success.

If you are trading since many years it means that you are still looking for the proper money management, perhaps? What do you think?

And talking about 2000 on a monthly basis, it is important to know what is your account balance at the start of the period; making 2000 with 50 euros or with 50 000 euros it's quite different, isn't it?

Good night and see you tomorrow,

Ioan

Hello Ioni72
I am very appreciate what will you give, I hope it can encourage me in trading.
Thank you very much for you kindness.

Lavery1

Hello to all of you,

Thanks Lavery 1 for your thoughts.

The second part of this thread is dedicated to the most important information that a trader should master before starting any other educational cursus about the technical analysis.

The Money Management

Remarks.

We are all so unique. We have so many personalities and we appreciate different ways of trading because of these differences. This is the main reason that makes so important the knowledge of the money management.

The risk taken by a day trader is not the same as a long term trader.

General rules: always protect your capital. Never give up. Never forget this statement. If you are not sure about the trade,better stay out than losing your money.

Managing the losses

Rule number one: the risk for each single trade is reduced at 1% of the account balance. Forever.
This information is available for real trades , on real accounts. When you are working on a demo account, you can try all kind of MM, but for real, I do not recommend to trade with a risk higher than 1%.

Why? Because we are not robots. We are humans and the pressure is at a very high level when the conditions for entry are met. We can make mistakes so easily at this moment.

If you have 1000$ on your account, if the trade goes against you and touches the Stop Loss, with 1% risk, you will lose only 10$. If your risk is set at 20% you will lose 200$. You are not watching your screen in the same way. 200$ it hurts already. 10$, I'm just thinking that it happens sometimes and I have enough time to recover and to touch the target of the day.

Rule number two: always set the STOP LOSS. Never change the SL if the trade goes against you.
Because we are humans, we think that if the trade goes in the wrong direction we can set an other SL and later during the day the price will change and we can exit the trade with a small profit. But it never happens!!!! And your losses are bigger and bigger and bigger. Instead of taking a small 1% loss and go with the trend , now, you are watching the price going in the other direction with your loss.

Rule three: never change the rules one and two. And here we are talking about us, humble humans, not the great traders, stars of the system.

Managing the profits

The system we trade with is quite good and we are often in profit. But when should we exit the trade?

I specify that here I analyse only the situation in connexion with my personal system, trading during the european session, between 8:00 AM GMT and 5:00 PM GMT. There are never orders opened during the night. Each time I go to sleep, my orders are closed.

There are several options for exiting the trade.

1/ Using a risk / reward ratio 1/1 or higher. What it means? If my SL is set at 15 pips, my Take Profit should be at least 15 pips.

2/ Using a percentage of 1% for exiting: my daily target is 1% of my initial balance of the day, so when the conditions are met , I close the order and take a break of 5-10 minutes.

3/ using the ATR Pips indicator: I used it with my previous strategy, with charts at 4h

4/ Using the trailing stop: if there are high volumes, it is possible to have some rallies, we can set the trailing stop. Here, the individual experience is the queen for taking the right decision.


Personally, I'm using the target of 15 pips per entry. I find this way to exit the trade the simplest possible.

That's all for today. Starting tomorrow, I'm going to publish the entry and exit rules and pictures for clarifying these points.

Hope you are all in a good shape.

I wish to all of you a nice and quiet evening with your families.

Ioan

Thank you very much Ioan

Waiting for it 2 code the alerter and more!

Thank you so much for your funny post

Ioan

Hello to all of you,

Thank you for your kind words, I really appreciate.

Let's work now.

Scalping trading system CCI based.

General considerations:

1/ what I'm looking for, my monthly target, my daily target
2/ trading plan- how many pips I need to reach the daily target, how many entries
3/ reminding the necessary conditions for trading/working
4/ what kind of trading I propose, trading hours, charts, timeframes, pairs
5/ indicators and expert advisor on the chart, template
6/ long conditions entry/exit
7/ short conditions entry/exit
8/ what to avoid or analyse before entering
9/ examples with screenshots will follow with the next posts
10/ commentaries, discussions, contributions

1/ I trade for living and for being financially independent. I will build all the explanations with an example of someone who lives in Western Europe and need to earn at least 2000 per month as his/her part in the household budget. These figures should be recalculated for the other countries.

Following this example I need to realize at least 2000 per month, and with 22 working days per month it means 100 per day. If 100 represents 1% of my balance, it is necessary to start the month with 10 000 on the trading account. 22 days of trading per month mean 22% or 2200 . Without stress.

To be clear, you don't need 10 000 to start trading with this system. You can work with 100 and you will build your capital quietly until you can live with your earnings.

Monthly target 2000 and/or 20% of the balance
Daily target 100 and/or 1% of the balance

2/ From my personal experience 15 pips are enough to reach the target of 1%. One single entry per day should be enough for earning 1% and/ot 100 per day. If the first entry is not the good one, we have enough time to delete the initially loss and to catch the right trade of the day.

15 pips/ one trade

3/ When I trade I work. And when I work I focus on my job. I don't eat, I don't watch the tv, don't look by the window, talk to the mobile or play videogames.
I know that I can't get my financial freedom in one day, nor in one month, even in one year. I know that I have to be patient and follow the main trend. Always.

4/ I trade only during the London session, from 8:00 AM GMT to 5:00 PM GMT, 1 min charts. This system could work with all timeframes and all pairs. Personally, I trade only 1 min charts and I check just for USD/JPY, GBP/JPY, GBP/AUD and GBP/CAD. It's impossible to follow too many pairs so I prefer to focus on these four pairs. There are enough entries for choosing the right one and reach the daily target.

London Session, 1 min charts, USD/JPY, GBP/JPY, GBP/AUD and GBP/CAD

5/
Main window:

SMA 1000 applied to close
SMA 200 applied to close
SMA 13 applied to close
PIVOT POINTS
Today High/Low- Yesterday High/Low- Today open line
Grid lines for 00 and 50: example: 112.50 or 142.00
Fractals
CCFP- on a neutral chart


Window1:
CCI 14, levels 100/-100 and 200/-200

Window 2:
Volumes

All indicators will be provided at the end of this post and in the next one and are available on Forex Factory. I will also post a template.

6/ Long:

SMA 200>SMA 1000

CCI 14 applied to close above level 200/ check the CCFP for confirmation of the position of the legs

SMA 13 above the horizontal line given by the high of the candle that represents the level 200 of CCI 14

Volumes above the level set individually for each pair- the figures are not identical from one broker to another

Entry long the first time the CCI 14 will cross the level 100 and will be confirmed- if the previous retracement didn't cross the level -100; in this case wait the next opportunity. If the CCI 14 is still above the level 100 , look for an entry using the outside/inside bar with fractals and confirmation

SL set to the last Higher Low level, exit the trade manually; use an emergency exit set at 30 pips managed by THV CaveManager 1.41

TP set to 15 pips, managed with the THV CaveManager 1.41, as well as the breakeven line, set at 10 pips, buffer 2


7/ Short

SMA 200<SMA 1000

CCI 14 applied to close below level 200/ check the CCFP for confirmation of the position of the legs

SMA 13 below the horizontal line given by the low of the candle that represents the level 200 of CCI 14

Volumes above the level set individually for each pair- the figures are not identical from one broker to another

Entry long the first time the CCI 14 will cross the level -100 and will be confirmed- if the previous retracement didn't cross the level 100; in this case wait the next opportunity. If the CCI 14 is still below the level -100 , look for an entry using the outside/inside bar with fractals and confirmation

SL set to the last Lower High level, exit the trade manually; use an emergency exit set at 30 pips managed by THV CaveManager 1.41

TP set to 15 pips, managed with the THV CaveManager 1.41, as well as the breakeven line, set at 10 pips, buffer 2

8/
Do not trade just before and just after News.
Avoid to enter when the price touches or is close to round numbers as 00/50, pivot points, support and resistance lines, SMA 1000 and SMA 200. Screenshots will follow.
Decisions should be taken one by one.

The next post will contain the last indicators, the EA that manages the exits, the template and two screenshots as examples with entries, both sides , long and short from the last two days.

I hope you will appreciate this work. I'll be present all evening long for answering your questions if you have.

I wish you a nice evening,

Ioan

last indicators, THV CaveManager, template

A small correction to the point 7

Line: SMA 13 you should read "level -200 of CCI14"

Apologize for the error

You can edit your posts for the first 24 hours after publication.

Example for a short entry with explanations

Before the entry, the confirmation by CCFP, for the example above

Thank you for the information