ABCD Trading Methology

[jstox]

Quote from pumpNdump:

I stopped out on the A , but rode up nicely on the C.

I noticed the daily pivot was right below the A-down. Looked like a good setup for the A-down rejection off this support area. Just curious why you went short?

Actually, I just looked at your numbers and your probably using a smaller opening range and looking to test that area?

Congrats on the C up.

--jeff

 

[ChiBondKing]

has anyone programmed this into a module in QCharts?

-c

 

[WinSum]

A possible ACD setup to watch for this Wednesday & Thursday is:

ES trading near its 52 week high + Start of Earnings Season Announcement this week could setup an environment to trade = Good News, Bad Reactions.

BTW, does anyone know any chatroom that uses ACD Metholodgy for trading ?

 

[WinSum]

Possible Trade Setup, NQ 3 Days Unfilled Gap.

 

[Hamlet]

Can anyone explain yet why this "concept" cannot be quantified?

 

[WinSum]

Quote from Hamlet:

Can anyone explain yet why this "concept" cannot be quantified?

How would you be able to code ACD setups like "Good News, Bad Action" ?

 

[Hamlet]

Quote from WinSum:

How would you be able to code ACD setups like "Good News, Bad Action" ?

Well that's just one part of the system is it not... and that should easily be accomplished by using seperate subsets of your total population of stocks - "good news stocks" and "bad news stocks". What is so difficult about that?

edit: if you are trading index futures than obviously you are using macro good or bad news and using a subset system for the day as opposed to subset lists.

 

[haub]

"good news/bad action" is not part of the ACD methodology. It is an example of a trader that he knows that trades that scenario. You can quantify the method by creating scripts that show the pivot range...and then a script that can show the opening range. You just need to figure out through backtesting what ATR value that should be used to figure your A and C points. The art of the method is knowing when to fade the A's and C's and when to take the pivot range trades. Also on how you implement the "concept of next" stop (the concept of a time stop). You also have to have tolerance for decent tick risk. Drawdowns could be an issue. Mark Fisher gained a reputation for running the stops on the floor. He has an intuition in the crude pit that helps his trading. Don't discount the art part of this strat.

 

[WinSum]

Quote from haub:

"good news/bad action" is not part of the ACD methodology. It is an example of a trader that he knows that trades that scenario. You can quantify the method by creating scripts that show the pivot range...and then a script that can show the opening range. You just need to figure out through backtesting what ATR value that should be used to figure your A and C points. The art of the method is knowing when to fade the A's and C's and when to take the pivot range trades. Also on how you implement the "concept of next" stop (the concept of a time stop). You also have to have tolerance for decent tick risk. Drawdowns could be an issue. Mark Fisher gained a reputation for running the stops on the floor. He has an intuition in the crude pit that helps his trading. Don't discount the art part of this strat.

"Good News/Bad Action" is in Fisher's ACD Book.

I take it as one example of trading A-Down. Not all A-Down setups are the same. When you have a A-Down based on "Good News/Bad Action", that is when step on the Gas on keep pyramiding on your A-Down position and don't let them out.

Maybe I might have misunderstood it.

 

[haub]

i stand corrected. i remember in his seminar that he had mentioned a guy that traded solely on that phrase. In his book, he does mention incorporating that phrase with ACD...tho since I'm more of a technical trader i found that part of little use for my trading. (I don't trade fundamentals).

My apologies for not referencing the book first.

FYI...you can find scripts on esignal for the acd pivot range and opening range...as well as the 3 day rolling pivot. Not sure if you are using esignal or not.