The ACD Method

[gmst]

Quote from Maverick74:

You couldn't give me King's money to buy Gold right now.

Thinking through it more, yes the technical damage done to gold has been immense and it seems we have still not seen the final capitulation. I am also not touching it for sometime now.

 

[Trader13]

Quote from RCG Trader:

Or.....you can specialize in one entity that has good volatility or good cycling over the last say, 5 years.

Every instrument is the same in so much as volatility cycles are concerned.

Pick a target, learn it's habitat, and wait for the correct moments to strike.

Volatility vs. direction is an important distinction. Do you think that quant/TA analysis techniques like ACD and others are more effective at identifying inflection points for volatility than picking a direction?

 

[Shanb]

Quote from Trader13:

Volatility vs. direction is an important distinction. Do you think that quant/TA analysis techniques like ACD and others are more effective at identifying inflection points for volatility than picking a direction?

ACD is used to help form a bias for direction. No one said anything about using to help pick inflection points for vol!

The discussion was about the similarity between mean reversion strategies and selling volatility, while momentum strategies tend to mimic a long vol strategy.

 

[Trader13]

Quote from Shanb:

ACD is used to help form a bias for direction. No one said anything about using to help pick inflection points for vol!

The discussion was about the similarity between mean reversion strategies and selling volatility, while momentum strategies tend to mimic a long vol strategy.

Thanks, I understood the previous discussion, and you clearly use ACD in one manner. I introduced a new question.

 

[RCG Trader]

Shan's post is important for you to remember, t13.

ACD helps you to filter signals from your system.

 

[Trader13]

Quote from RCG Trader:

Shan's post is important for you to remember, t13.

ACD helps you to filter signals from your system.

Point taken and insights greatly appreciated (Shan). My questions are trying to broaden the discussion of ACD beyond the topics already covered.

 

[RCG Trader]

Quote from Trader13:

Point taken and insights greatly appreciated (Shan). My questions are trying to broaden the discussion of ACD beyond the topics already covered.

You are trying to make the simple complex. Dumb it down. Seriously.

Just take it as it is, and go with that. ACD is a bias filter, it was not meant to be anything else.

 

[kinggyppo]

Quote from Trader13:

Point taken and insights greatly appreciated (Shan). My questions are trying to broaden the discussion of ACD beyond the topics already covered.

The point made about pairs trading was that there are a gazillion possible combinations, the idea being you can trade a product that hasn't been traded by all and sundry. I think when Mark Fisher was on he talked about short yen long ccj (cameco). Mav has had some interesting posts about this you may want to scroll back a few weeks, the discussion was around 11/30 or so when Fisher was on the tube.


some of these articles are helpful if you scroll down.

http://biggercapital.squarespace.com/

 

[Trader13]

Quote from RCG Trader:

You are trying to make the simple complex. Dumb it down. Seriously.

Just take it as it is, and go with that. ACD is a bias filter, it was not meant to be anything else.

Fair enough ... I love a straight answer!

 

[Maverick74]

Quote from Trader13:

Volatility vs. direction is an important distinction. Do you think that quant/TA analysis techniques like ACD and others are more effective at identifying inflection points for volatility than picking a direction?

Direction and volatility are kind of synonymous. Generally speaking an increase in volatility is associated with falling prices in risk assets and a decrease in volatility with an increase in the prices of risk assets. Outside of that, I'm not sure what your question is.