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Based on your description, I assume that you are looking at a 52 page
document titled "Trading Woodies CCI System (This document has been approved
by Woodie)" If so, the rules that you refer to are behavioral in nature, as
opposed to buy/sell patterns. The behavior rules (and that is what they are
called) are repeated over and over in phrases such as:
"Watch your chart for a Woodie CCI pattern"
"Wait. Watch. Keep waiting. Keep watching, Do not watch prices. Do not
think."
But then there is a slight shift with respect to patterns and the instructions are
referred to not as rules but guidelines. Hmmm. Things are starting to get a
bit murky. How does one code a guideline? We are fed phrases like:
"Woodies CCI system is a complete set of guidelines for you to follow."
"The CCI indicator has some nuances that cannot all be explained in this
document. This can only be learned from screen time and practice."
"Notice that the 3 chart shows a lower inside bump that actually goes onto
the other side of the zero-line. This is a nuance and does happen. That is
fine. Important to point out is that this is actually a valid zero-line
reject long signal since it doesn't go past the CCI -100 area. This one goes
a bit further so it could be taken with caution."
"However, it [the document] only explains the guidelines. You will
absolutely need many months of screen time to master this system."
Do you think that "trading patterns 'exactly' as described" should take many months of screen time to conquer? Sure, if the patterns used in the system are only defined in terms of guidelines, not rules, and are coated with a layer of subjectivity. Guidelines are not easily (if at all) coded and incorporated into a mechanical system (maybe some fuzzy logic is needed here to handle fuzzy guidelines).
As to why Woodie types don't search for patterns that are suitable for a mechanical system, you will have to ask them but I suspect it is because deep down they have a discretionary streak. I tried the system for a while, sat in the chat room, etc. and as a discretionary trader did not feel comfortable with what they were doing. From what I have seen, the successful
Woodie traders are on the discretionary side of the spectrum and consider themselves to be Woodies because CCI is the foundation of their approach. Beyond that they use a variety of indicators and patterns in very individual ways.
Bill
----- Original Message -----
From: "quanttrader714" <quanttrader714@xxxxxxxxx>
To: <amibroker@xxxxxxxxxxxxxxx>
Sent: Friday, October 27, 2006 12:45 PM
Subject: [amibroker] Re: seeking the following in a trading platform for a
Woodie's CCI trader
> Bill & Rakesh,
>
> Perhaps you guys can clear something up for me. According to one
> document I've read that was approved by Woodie himself, the patterns
> should be traded *exactly* as described. Which to me implies
> mechanical execution that can be backtested. However, nobody ever
> seems to be able to get a coded pattern to "test out," so then Woodies
> practitioners say judgement must be applied. Which is it? And if
> it's the latter, then why don't Woodies practitioners use patterns
> that *do* test out so their judgement doesn't have to overcome the
> "drag" of patterns that backtest so poorly?
>
> --- In amibroker@xxxxxxxxxxxxxxx, "wavemechanic" <fimdot@xxx> wrote:
>>
>> That's right, Rakesh. As a result, results will often not be
> accurately reflected by a mechanical evaluation.
>>
>> Bill
>> ----- Original Message -----
>> From: Rakesh Sahgal
>> To: amibroker@xxxxxxxxxxxxxxx
>> Sent: Friday, October 27, 2006 1:01 AM
>> Subject: Re: [amibroker] Re: seeking the following in a trading
> platform for a Woodie's CCI trader
>>
>>
>> To the extent I have been able to understand, Woodies is more of a
> method, rather than a system where objectively laid out criteria can
> be applied.
>>
>> Success is as much a function of the trader's competence in
> understanding and applying the method(not system) as it is a function
> of the trader knowing when there is a higher probability of a
> particular pattern succeeding. The fact that it is hyped up to the
> extent it is, is probably because novices gravitate towards it hoping
> they can gloss over their own shortcomings and achieve some measure of
> success.
>>
>>
>> R
>>
>>
>> On 10/27/06, Fred <ftonetti@xxx> wrote:
>> It's not about discretionary .vs. system trading ... I have every
>> respect for those who are successful with some form of discretionary
>> trading ...
>>
>> However, when I hear of a particular method where the experts state
>> that there are definite rules and the rules are written and applied
>> via AFL or ELx or whatever and the resulting backtest is a flop and
>> then the experts then state that the rules can't be backtested I
>> become more than a little suspicious.
>>
>> --- In amibroker@xxxxxxxxxxxxxxx, "wavemechanic" <fimdot@> wrote:
>> >
>> > I wouldn't knock Woodies (or any other) approach. I know a
> couple
>> of traders who have done very well following in his footsteps. I
>> never got comfortable with it but there is always more than one way
>> to do something successfully (e.g., system vs. discretionary
> trading).
>> >
>> > Bill
>> >
>> > ----- Original Message -----
>> > From: "Fred" <ftonetti@>
>> > To: <amibroker@xxxxxxxxxxxxxxx>
>> > Sent: Thursday, October 26, 2006 8:41 AM
>> > Subject: [amibroker] Re: seeking the following in a trading
>> platform for a Woodie's CCI trader
>> >
>> >
>> > > Woodies is like being on a Jim Jones trip ... now drink the
>> coolaide
>> > > boys and girls ...
>> > >
>> > > --- In amibroker@xxxxxxxxxxxxxxx, "scourt2000" <stevehite@>
> wrote:
>> > >>
>> > >>
>> > >> Tomasz,
>> > >>
>> > >> I apologize for my outburst like this. It just burns me up
>> > >> sometimes when I know how powerful your product already is and
>> how
>> > >> people come on this board and want the moon put into a $229
>> price
>> > >> tag.
>> > >>
>> > >> Next time, I'll just curse to myself and ignore these kinds of
>> > > posts.
>> > >>
>> > >> Steve
>> > >>
>> > >> --- In amibroker@xxxxxxxxxxxxxxx, "scourt2000" <stevehite@>
>> wrote:
>> > >> >
>> > >> >
>> > >> > Dennis,
>> > >> >
>> > >> > What are you trying to do? Suck the life force out of this
>> group
>> > >> and
>> > >> > leave it for dead? Maybe you were some powerful guy in
> the 9
>> to
>> > >> 5
>> > >> > business world where that kind of detailed delegation of
>> > >> > responsibility got you fat bonuses, but I would hope that
>> > >> technique
>> > >> > doesn't fly in the trading community where no one owes you
>> > >> anything.
>> > >> >
>> > >> > I have lost a couple of trading buddies to "the Woodies CCI"
>> and,
>> > >> > unfortunately, by the time I saved myself from it, they
>> already
>> > >> had to
>> > >> > go back to their 9 to 5 jobs in order to put food on the
>> table.
>> > >> [I'm
>> > >> > not joking]
>> > >> >
>> > >>
>> > >
>> > >
>> > >
>> > >
>> > >
>> > > Please note that this group is for discussion between users
> only.
>> > >
>> > > To get support from AmiBroker please send an e-mail directly to
>> > > SUPPORT {at} amibroker.com
>> > >
>> > > For NEW RELEASE ANNOUNCEMENTS and other news always check
> DEVLOG:
>> > > http://www.amibroker.com/devlog/
>> > >
>> > > For other support material please check also:
>> > > http://www.amibroker.com/support.html
>> > >
>> > > Yahoo! Groups Links
>> > >
>> > >
>> > >
>> > >
>> > >
>> > >
>> > >
>> > > --
>> > > No virus found in this incoming message.
>> > > Checked by AVG Free Edition.
>> > > Version: 7.1.408 / Virus Database: 268.13.9/490 - Release Date:
>> 10/20/2006
>> > >
>> > >
>> >
>>
>>
>>
>>
>>
>> Please note that this group is for discussion between users only.
>>
>> To get support from AmiBroker please send an e-mail directly to
>> SUPPORT {at} amibroker.com
>>
>> For NEW RELEASE ANNOUNCEMENTS and other news always check DEVLOG:
>> http://www.amibroker.com/devlog/
>>
>> For other support material please check also:
>> http://www.amibroker.com/support.html
>>
>> Yahoo! Groups Links
>>
>>
>>
>>
>>
>>
>>
>>
>>
>>
> ------------------------------------------------------------------------------
>>
>>
>> No virus found in this incoming message.
>> Checked by AVG Free Edition.
>> Version: 7.1.408 / Virus Database: 268.13.14/501 - Release Date:
> 10/26/2006
>>
>
>
>
>
> Please note that this group is for discussion between users only.
>
> To get support from AmiBroker please send an e-mail directly to
> SUPPORT {at} amibroker.com
>
> For NEW RELEASE ANNOUNCEMENTS and other news always check DEVLOG:
> http://www.amibroker.com/devlog/
>
> For other support material please check also:
> http://www.amibroker.com/support.html
>
> Yahoo! Groups Links
>
>
>
>
>
>
>
> --
> No virus found in this incoming message.
> Checked by AVG Free Edition.
> Version: 7.1.408 / Virus Database: 268.13.14/501 - Release Date:
> 10/26/2006
>
>
Content-Description: "AVG certification"
No virus found in this incoming message.
Checked by AVG Free Edition.
Version: 7.1.409 / Virus Database: 268.13.27/517 - Release Date: 11/3/2006
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