Commodity Selection Index (CSI)



Commodity Selection Index


The Commodity Selection Index (CSI) has been initially developed for stock trading, where it was used to find commodities with the highest profit potential for short-term trading.

The CSI indicator was first introduced Welles Wilder in the book called "New Concepts in Technical Trading Systems".

Commodity Selection Index theory


CSI combines 4 factors, which determine the best commodities for trading.
CSI suggest that the best commodities are:

- high in directional movement (DMI indicator value)
- high in volatility (Volatility Index value and ATR)
- have reasonable margin requirements (relative to directional movement & volatility)
- have reasonable commission rates

How to trade with CSI


Wilder's approach is to trade commodities with high CSI values (relative to other commodities).
A high CSI rating demonstrates that the commodity has strong volatility characteristics and is trending.
Such commodities with high CSI rating are very volatile, and have the potential to make the fastest profits in the shortest period of time.

Commodity Selection Index formula


CSI calculation example


Although high CSI values imply trending markets characteristics, the indicator is designed for short-term traders who can handle the risks associated with highly volatile markets.


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Comments

Thank You so much.
It would be great if you post the code hear for downloading.

 

Please provide the download link

 

Sorry, don't have it for MT4 yet.

 

sir i am doing commodity so kindly provide the down load link

 

wow that guy was kind of a tool but this stuff is really cool

 

how to calculate the value of 1c move..??