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PC CCI VR Automated Trading System Series Theory Review


PC CCI VR 1.32 System Theory Review

PC CCI VR 1.42i System Theory Review

PC CCI VR 2.0 System Theory Review [ Featured Automated Trading System ]

Compare the PC CCI VR System Series Inputs

 

PC CCI VR 1.32 System Theory

EKam CCI

The idea of this input is to measure where price is compared to a simple moving average. The EKam measures the standard deviation from the moving average. We incorporate this indicator to filter overbought/ oversold conditions.

Volume Ratio

The volume ratio input compares the representation of buyers vs. sellers over a period of time. The assumption is that if a stock closes UP for the day, the attributable volume was induced by buying pressure and thus the stock is under accumulation. Conversely, if a stock closes DOWN for the day, the trading activity is deemed to be selling induced a sign of distribution. Up/Down ratio is calculated by creating a ratio of the volume on days when price increased to volume on days when price decreased. We incorporate this indicator to measure the strength of the trend.

Price Channel

The Price Channel input is a price movement that is bound by an upper and lower trend line. The upper trend line marks resistance and the lower trend line marks support. Price channels with negative slopes are considered bearish and those with positive slopes bullish. We use price channels to measure support and resistance areas.

Moving Averages

The moving average input is the average value of a security's price over a set period. Moving averages are used to measure momentum and define areas of possible support and resistance. We use the moving averages as a filter to keep us trading in the direction of the trend.

Average True Range Stop Loss and Target

The Average True Range is a measure of volatility introduced by Welles Wilder in his book: New Concepts in Technical Trading Systems. The Average True Range is a moving average (generally 14-days) of the True Ranges. Simply put, a stock experiencing a high level of volatility will have a higher ATR, and a low volatility stock will have a lower ATR. We use the average true range input to calculate higher probability price targets and stop losses.

Timing - Begin Trading Time, Stop Trading Time, End of Day Exit

Timing the market is an essential part of short term trading. A timing input has been incorporated into this strategy to filter out, or filter in, volatility during certain hours of the trading day. This input allows traders to automatically enter or close a position any time during the trading day, and/or also not enter any new trades after a certain time during the trading day. We use this indicator to filter volatility, and also close positions automatically at the end of trading day.

Equity Cross Over [ Exclusive Input available only in the PC CCI VR 1.32 and 1.42i Automated Trading System Series ]

A money management technique that often improves trading performance is to modify the number of shares/contracts traded based on crossovers of a moving average of the equity curve. The basic idea is to trade either more or fewer shares/contract when the equity curve crosses above or below its moving average. This can be an effective technique for increasing the size of winning trades while reducing the number of losing trades. We use this input to smooth the equity line, and reduce draw down.

PC CCI VR 1.42i System Theory

EKam CCI

The idea of this input is to measure where price is compared to a simple moving average. The EKam measures the standard deviation from the moving average. We incorporate this indicator to filter overbought/ oversold conditions.

Volume Ratio

The volume ratio input compares the representation of buyers vs. sellers over a period of time. The assumption is that if a stock closes UP for the day, the attributable volume was induced by buying pressure and thus the stock is under accumulation. Conversely, if a stock closes DOWN for the day, the trading activity is deemed to be selling induced a sign of distribution. Up/Down ratio is calculated by creating a ratio of the volume on days when price increased to volume on days when price decreased. We incorporate this indicator to measure the strength of the trend.

Price Channel

The Price Channel input is a price movement that is bound by an upper and lower trend line. The upper trend line marks resistance and the lower trend line marks support. Price channels with negative slopes are considered bearish and those with positive slopes bullish. We use price channels to measure support and resistance areas.

Moving Averages

The moving average input is the average value of a security's price over a set period. Moving averages are used to measure momentum and define areas of possible support and resistance. We use the moving averages as a filter to keep us trading in the direction of the trend.

Average True Range Stop Loss and Target

The Average True Range is a measure of volatility introduced by Welles Wilder in his book: New Concepts in Technical Trading Systems. The Average True Range is a moving average (generally 14-days) of the True Ranges. Simply put, a stock experiencing a high level of volatility will have a higher ATR, and a low volatility stock will have a lower ATR. We use the average true range input to calculate higher probability price targets and stop losses.

Timing - Begin Trading Time, Stop Trading Time, End of Day Exit

Timing the market is an essential part of short term trading. A timing input has been incorporated into this strategy to filter out, or filter in, volatility during certain hours of the trading day. This input allows traders to automatically enter or close a position any time during the trading day, and/or also not enter any new trades after a certain time during the trading day. We use this indicator to filter volatility, and also close positions automatically at the end of trading day.

Equity Cross Over [ Exclusive Input available only in the PC CCI VR 1.32 and 1.42i Automated Trading System Series ]

A money management technique that often improves trading performance is to modify the number of shares/contracts traded based on crossovers of a moving average of the equity curve. The basic idea is to trade either more or fewer shares/contract when the equity curve crosses above or below its moving average. This can be an effective technique for increasing the size of winning trades while reducing the number of losing trades. We use this input to smooth the equity line, and reduce draw down.

Slippage Scale [ Exclusive Input available only in the PC CCI VR 1.42i Automated Trading System ]

A unique slippage scale algorithm input has been incorporated into the PC CCI VR 1.42i to enter and exit with Stop Limit or Market Orders. This input is based on tick data to calculate entries and exits. This is why you can use this system on a tick chart directly, or on a bar chart, with a same symbol tick chart on the same page. E.g., One 10 minute GOOG chart, with the system installed, and one 800 GOOG tick chart on the same workspace.

When the stop limit order is entered, and the market marker does not except your order, and the market moves above or below original entry, your order can be cancelled, or automatically recalculated up to 3 times based on the slippage scale of the bid and ask price. If after two additional try's the stop limit order is still not received, you can choose to automatically abort, or automatically make a market order to get in at the market price to not loose entry.

This system input is best used on stocks and markets with very large spreads where it would be less favorable to enter and exit using the market order.

PC CCI VR 2.0 System Theory

EKam CCI

The idea of this input is to measure where price is compared to a simple moving average. The EKam measures the standard deviation from the moving average. We incorporate this indicator to filter overbought/ oversold conditions.

Volume Ratio

The volume ratio input compares the representation of buyers vs. sellers over a period of time. The assumption is that if a stock closes UP for the day, the attributable volume was induced by buying pressure and thus the stock is under accumulation. Conversely, if a stock closes DOWN for the day, the trading activity is deemed to be selling induced a sign of distribution. Up/Down ratio is calculated by creating a ratio of the volume on days when price increased to volume on days when price decreased. We incorporate this indicator to measure the strength of the trend.

Price Channel

The Price Channel input is a price movement that is bound by an upper and lower trend line. The upper trend line marks resistance and the lower trend line marks support. Price channels with negative slopes are considered bearish and those with positive slopes bullish. We use price channels to measure support and resistance areas.

Moving Averages

The moving average input is the average value of a security's price over a set period. Moving averages are used to measure momentum and define areas of possible support and resistance. We use the moving averages as a filter to keep us trading in the direction of the trend.

Timing - Begin Trading Time, Stop Trading Time, End of Day Exit

Timing the market is an essential part of short term trading. A timing input has been incorporated into this strategy to filter out, or filter in, volatility during certain hours of the trading day. This input allows traders to automatically enter or close a position any time during the trading day, and/or also not enter any new trades after a certain time during the trading day. We use this indicator to filter volatility, and also close positions automatically at the end of trading day.

Average True Range Stop Loss and Target

The Average True Range is a measure of volatility introduced by Welles Wilder in his book: New Concepts in Technical Trading Systems. The Average True Range is a moving average (generally 14-days) of the True Ranges. Simply put, a stock experiencing a high level of volatility will have a higher ATR, and a low volatility stock will have a lower ATR. We use the average true range input to calculate higher probability price targets and stop losses.

Point Stop Loss and Point Target [ Exclusive Input available only in the PC CCI VR 2.00 Automated Trading System Series ]

This Stop Loss input enables you to specify the amount of money you are willing to risk either on a position, or one contract or share basis. The point stop loss input generates an order to close your entire position once the stop loss amount has been reached. Alternatively, the Point Target input indicates the dollar amount that will trigger a profit target order.

Dollar Trailing Exit [ Exclusive Input available only in the PC CCI VR 2.00 Automated Trading System Series ]

The Trailing Stop input option is an advanced order setting that is used with a Stop Market order type. This input allows you to set a trailing stop to a specified point or percentage amount from the current price. The "profit give-back" dollar amount at which point the position will be closed.

Percent Trailing Exit [ Exclusive Input available only in the PC CCI VR 2.00 Automated Trading System Series ]

The Percent Risk Trailing input (PctTrailingFloorAmt and PctTrailingPct) enable you to indicate what percent of the maximum open position profit you are willing to give back before the position is automatically closed out. PctTrailingFloorAmt indicates the minimum profit level (in dollars) to reach before the stop will take effect. PctTrailingPct is the percentage of profit you are willing to lose. If the maximum open position profit for the trade does not exceed the floor level, this trailing stop does not take effect. Consequently, this setting only locks in profits; it does not exit a position if the floor level is never reached.

Trade by Share Size, or Risk Tolerance [ Exclusive Input available only in the PC CCI VR 2.00 Automated Trading System Series ]

The PC CCI VR 2.0 features and exclusive unique money management technique which allows you to trade by number of shares, contracts, or alternatively you can trade only a percentage of the total amount of your equity account, sometimes called the "Percent Risk Model".

Positions that are based on risk tolerance, or a percent risk model, for example can have a $1,000,000 marginable trading account. Depending on your risk tolerance, you may choose to size your positions equally based upon a dedicated risk relative to your overall account. For instance, lets chose a 1% risk tolerance on a portfolio of that size. Depending on your risk tolerance or aggressiveness, you may adjust that risk percentage from .5% to 4%, but typically not beyond. Using a 1% risk, meaning that each position will be sized so that the risk is no more than 1% of your $1,000,000 account. One percent of one million dollars is $10,000, so that will be our risk for our first position.

Compare System Inputs


 
PC CCI VR 1.32
PC CCI VR 1.42i
PC CCI VR 2.0
  Entry CCI Switch
X
X
X
 
  Entry Volume Ratio Switch
X
X
X
 
 

CCI Length

X
X
X
 
  CCI Scale
X
X
X
 
  CCI Minimum
X
X
X
 
  CCI Maximum
X
X
X
 
  Volume Ratio Length
X
X
X
 
  Price Channel Length
X
X
X
 
  Moving Average Filter Switch
X
X
X
 
  Moving Average Length 1
X
X
X
 
  Moving Average Length 2
X
X
X
 
  Moving Average Type 1
X
X
X
 
  Moving Average Type 2
X
X
X
 
  ATR Stop
X
X
X
 
  ATR Target
X
X
X
 
  ATR Length
X
X
X
 
  ATR Stop Number
X
X
X
 
  ATR Target Number
X
X
X
 
  ATR Type
X
 
  Point Target
X
 
  Point Stop
X
 
  Dollar Trailing Exit
X
 
  Percent Trailing Exit
X
 
  Day Trade Timing
X
X
X
 
  End of Day Exit
X
X
X
 
  Entry Start Time
X
X
X
 
  Entry Stop Time
X
X
X
 
  Trade by Shares or Contracts
X
X
X
 
  Trade by Shares, Contracts or Percentage of Equity
X
 
  Equity Cross Over Switch
X
X
 
  Equity Moving Average Length
X
X
 
  Equity Cross Over Shares Change
X
X
 
  Slippage Scale
X
 
  End of Day Exit Type
X
 

 


 

 
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