Trading CCI Crossovers with an EMA of CCI

Summary

This document describes a trading rule that smooths Commodity Channel Index (CCI) values with an exponential moving average (EMA), then uses crossovers between the two series to open and close positions. A downward cross of the EMA through CCI opens a long position and closes a short; an upward cross opens a short and closes a long. The EMA is applied to the indicator’s output rather than directly to market prices.

The source mentions testing on EURUSD at the hourly interval, but gives no performance results, sample period, costs, or risk controls. It therefore presents a strategy concept and implementation context, not evidence that the rules are profitable. The crossover logic may produce repeated signals in choppy conditions, and the document does not specify position sizing, stop placement, or how conflicting positions are handled.

Key ideas

• The strategy calculates an EMA from CCI values rather than from market prices.
• A downward EMA–CCI cross opens a long and closes a short.
• An upward EMA–CCI cross opens a short and closes a long.
• The document mentions an hourly EURUSD test but provides no performance statistics or risk-management rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.