CCI Zero Line Cross

Entry Logic

• Exact Entry Trigger: Enter long when the CCI crosses above the zero line. Enter short when the CCI crosses below the zero line.
• Confirmation: A strong candle close in the direction of the cross.
• Timeframe: 60-minute, Daily.
• Market Condition: Start of a new trend.

Exit Logic

• Profit Targets: Exit when the CCI crosses back over the zero line.

Stop Loss Structure

• Hard Stop: Place stop 2 ATR below the entry price.

Risk Management Framework

• Risk Per Trade: 1.5% of account capital.

Position Sizing Model

• Sizing Approach: Volatility-based sizing.

Trade Filtering

• Market Conditions to Avoid: Ranging markets.

Context Framework

• Trend Direction: The zero line cross signals the new trend direction.

Trade Management Rules

• Add Size: Add to the position on pullbacks to the 20-period EMA.

Time Rules

• Session Notes: This is a swing trading strategy.

Setup Classification

• A+ Setup: The cross is accompanied by a breakout on high volume.

Market Selection Criteria

• Instruments: Commodities and futures contracts.

Statistical Edge Metrics

• Win Rate: 40-50%.
• Profit Factor: 2.0.
• Expectancy: 0.6R.

Failure Conditions

• Strategy Fails: In choppy markets with frequent whipsaws around the zero line.

Psychological Rules

• Discipline: Hold trades to capture the majority of the trend.

Advanced Components

• MTF Alignment: The weekly chart should confirm the trend direction.

Location

• Strongest: At the beginning of a new, sustained trend.