Trading the Woodies CCI from scratch

1. Download TraderWorkStation (TWS) from IB. You can try it right away without opening an account. Just use "edemo" for the login name and "demouser" for the password. If you need detailed instructions or having problems on how to install TWS, just click here. You need to open an account to be able to get live data.

2. Download and install SierraCharts charting software. You have to pay at least 3 months subscription upfront to be able to use Sierra - the trial is useless.

3. Setup the chart as Woodie sees it.

- change the background color of the chart
click Chart =>Graphics Settings - Global, a window will pop out
select Chart Background and change the color
do the same for Text Window Background

4. Setup Woodies CCI indicator on Sierra

Two ways to do it -

a. file contributed by Bob Ferraris, includes CCI, EMA, LSMA on chart
- download this file, and unzip to the "c:\SierraChart\data" folder
- download the dll files and unzip to the "c:\SierraChart" folder
- click Analysis on the SierraChart menu and select "WoodiesCCI"

b. my personal version, no need for custom dll's, pure CCI, no EMA, LSMA
- download this file, and unzip to the "c:\SierraChart\data folder"
- no need to setup dll's
- click Analysis on the SierraChart menu and select "WoodiesCCI-1"

Note: For those using eSignal, download the CCI EFS with ZLR alerts

5. Download Hotcomm to login in to Woodies room to get more info and watch experienced traders trade live. Instructions for installation here. I'm usually there - look for dawntrader.

6. Learn the CCI setups - learn the easiest one first - the ZLR or zero line reject

- more than 5 bars above 0, look for longs

- more than 5 bars below 0 look for shorts

- enter on rejection of 0 line near the completion of the bar

- watch Nick Trader on Woodie's hotcomm

7. Simulate trade with Bracket Trader first before going live.

Beginners of Woodies CCI suffer from the fact that they learn by doing. For this reason, beginners do not even realize the required condition associated with each set up and they lose money by blindly applying the setups that they thought they saw, independent of current market condition.
For this reason, beginners should realize that as they learn each setup, they should also learn the conditions under which that setup gives them favorable odds, and also set their stops according to whether it's a scalp play or a trend play, and even *stay away* if the odds are not good for their setup.
And I cannot stress the importance of size control and paper trading. There is really no reason to pay tuition with real money untill you're confident that you have seen enough about your setups that you can make money consistently with it.
That's all.
Lizard 05/27/2003

Fact:

Do you know that Woodie and others in his room often trades without prices? The reason is that there will be less distractions to influence your trading. So, why not trade with the following - less things to look at, goes with the Woodie philisophy.