Commodity Selection Index on Commodity ETFs

Commodity Selection Index (CSI) was developed by Welles Wilder, and described in the book called “New Concepts in Technical Trading Systems“. This indicator is an extension of his DMI. It is designed to help traders properly select instruments for investment. The selection is based on the DMI indicator, considering of capital, leverage, and commission fee.

A high CSI rating indicates that the commodity has strong trending and volatility characteristics. The trending characteristics are brought out by the Directional Movement factor in the calculation–the volatility characteristic by the Average True Range factor.

Wilder’s approach is to trade commodities with high CSI values (relative to other commodities). Because these commodities are highly volatile, they have the potential to make the “most money in the shortest period of time.” High CSI values imply trending characteristics, which makes it easier to trade the security.

The CSI is designed for short-term traders who can handle the risks associated with highly volatile markets. Now the CSI values for the Commodity ETF’s (52 ETFs from Morningstar Commodity Categories). Sorted by High reading to Low reading (there is a filter for this screen so only those that fit the filter appear):

Last Time I ran this February 5, 2014 for public consumption,. Click HERE to view.