I believe the first step in becoming succesful is finding out what move the prices, ie. what created the supply or demand causing the movement. The moment I learned that indicators are just derivatives of the price I started looking for other things. Also if all the trading platforms contain a set of indicators, the most logical thing to me is that if those indicators work(ed), then they stop working (for the rest of us) when insider who can get the lowest latency access possible starts using it with millions.

The information I look for in the web is hints of ideas I haven’t heard of before. Also I believe that edge by definition is something that only few can have in order it to work (everyone can’t win the tournament), so that discounts anything based primarily on well known indicators – those are at most a confirming element.

My recommendation?

If you want to get serious and possibly backtest things later in more credible manner: every time you see or read/hear something that affects the way you view the market conditions, take a note of the time and the new “bias”. When backtesting, you can then use this information to bias your backtests in discretionary manner. eg. perhaps you read a rumor of possible central bank action at certain time, if your future backtesting always incorporates these informations you noted down when they happened, that could have significant effect. If “buy the rumor, sell the news” applies, you’d want to also incorporate a note of when the rumor became the news in your view so that the backtests can use this information.

I’ve read about a profitable mechanical trader and it was said they use several systems and switch them around based on market conditions, and condition changes are usually based on some news or event. Your backtesting should thus contain information on the conditions changes and have the system in test only active in the backtest period when your notes said such (eg. bullish,bearish, ranging, avoid trade etc).

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To be honest, I never bothered looking into the CCI club because there’s so much crap on the homepage. Gave me a headache just looking at it. Don’t like talking to others anyway.

I came across the CCI pdf and just adapted the system after 5 minutes of trying it. Looking at the CCI patterns is a good idea – even if they are lifted from other sources. And I did need to get rid of prices but only when starting out in demo trading to gain trust in the system.

A fast setting (CCI 14) is only good for trying to get a tight entry / exit in a nice long trend. No good trying to trade noise – you’ll get cut up and bleed to death. You need to look at the price conditions to know that. A slower value works better to absorb noise BUT only with your own set of management rules in addition to the less important CCI rules.

A CCI chart is almost similar to a MACD chart , e.g. 5 minute CCI 34 and 5 minute 4,34,14 MACD. The strength is in the patterns, not the indicator. Even then, you can be very successful with just the ZLX and ZLR patterns as a trend follower in the right markets but only with your own money and stop-loss rules to protect yourself with (You WILL suffer losses). On it’s own, WCCI will ‘probably’ not work (in present conditions). Discretion overlays the mechanical.

Due diligence, people. Put in the ground work before committing money.

I am a successful trader. I have MANY setups and methodologies. I have more than I know what to do with. I have a limited amount of capital, but it continues to grow and I am now managing other people’s money now as well.

I often tell anyone who will listen what I do and how I do it. Usually friends or people that I want to help. I also would have no problem sharing what I know for a fee.

I can make money with nothing more than a yahoo chart and a DOM. That’s because I spent many years watching ticks.

The most important piece of trading is money management. You can flip a coin for entry. It’s how you manage the trade that makes the difference. Thus if I “taught” someone how to trade, it would be less about setups and more about management and psychology.

The “wholly” grail is about being a “whole” person mentally and financially. Thus successful trading or ANY success will be a by product of said.

Now as far as WCCI. Leave him alone. There is nothing wrong with a guru or anything of the like, just like there is nothing wrong with random entry and good management. My point is that two people with equally accounts, both sitting in the WCCI room, with BOTH get different results. I can understand why they want to shut those people up who are contrary to the mission. It’s because people have a sense of something that works FOR THEM and if you come in there and get negative, you might mess them up. If you want to question his methods or his cult, then make a new website and let people visit and discuss it there. What I mean is this. I absolutely don’t want anyone’s opinion when I am in a trade. I will hide all I can from the world because they will mess me up.

I can tell you first hand that I have shared some VERY nice secrets I have learned and ironically, I have received responses similar to that of what Doug Tucker has provided herein. This is not to say that Doug doesn’t provide value, but rather anyone from WCCI could come and critic’ his site equally to the way he criticized theirs.

Bottom line. Stop whining, Shut up, and trade. The real secret to this game is capital. You 1-5 lot traders will get killed out there or make a little lose a little. The way to survive is capital and position sizing.

I’m out!