Supertrend + CCI: The Only Trading Strategy That 100% Works

Summary

The presenter demonstrates a scalping strategy that combines the Supertrend indicator with the Commodity Channel Index (CCI). Supertrend provides dynamic support and resistance levels and indicates trend direction, while CCI helps confirm pullbacks.

The presenter says the strategy works best in trending markets and may produce losing trades in sideways conditions.

Entry rules

Long trade

1. Price is above the Supertrend.
2. During a pullback, a candle touches the Supertrend but does not cross it and close below it.
3. CCI confirms the pullback by entering oversold territory and then crossing back above −100.
4. Enter after a bullish candle closes above the body of the most recent bearish candle.
5. Place the stop slightly below the Supertrend.

Short trade

1. Price is below the Supertrend.
2. During a pullback, a candle touches the Supertrend but does not cross it and close above it.
3. CCI confirms the pullback by entering overbought territory and then crossing back below +100.
4. Enter after a bearish candle closes below the body of the most recent bullish candle.
5. Place the stop slightly above the Supertrend.

For either direction, the stated profit target is 1.5 times the risk. A pullback that does not touch the Supertrend is considered invalid, even if CCI confirms it.

Backtest and performance claims

• Instrument tested: Natural gas
• Timeframes discussed: 5-minute chart for the backtest; the presenter also suggests trying 15-minute and 4-hour charts.
• Test period and risk: 100 trades over five months, starting with $100 and risking 2% per trade to target 3%.
• Reported results: 74% win rate, over 427% account profit, and a 4.27 profit factor.
• Streaks and rating: 12 consecutive wins, two consecutive losses, and a strategy rating of 9/10.

These are the presenter’s backtest results and do not guarantee future performance. The presenter cautions that backtest results vary, advises viewers not to base investment decisions on them, and recommends demo-trading before going live.

Assets and instruments mentioned

• Natural gas
• Supertrend and CCI indicators

Presenter and source

The presenter is an unnamed host from TradeIQ. The presenter says they used Trader Edge for backtesting.