The ACD Method
- Thread starter sbrowne126
- Start date
Quote from Shanb:
Well it just about moves up every day! You can't expect it to not take a break every now and then
If it's the stock I think it is though it shouldn't make an A-down for the rest of the month, (unfortunately that's what happens when you don't update your excel spreadsheet!)
Quote from Shanb:
I can see what you are saying...you are looking at price relative to reference points to establish trades.
Mav is just taking a step further out with product selection, spreads, longer holds etc. , he is still looking at price relative to something else...he can just be alot more flexible with his trading.
You keep on plugging away MFB, I enjoy watching your intra day approach! Seems like you have put many hours and work into it
Hell maybe you'll be trading spreads and the whole universe of products in a year or two...i'll be sitting back and watching your mastery of CL!
Thanks. That's why i always say agreed 100% to Mav. input. He is generous to point us to look at other options. Till, i get to next level, i have to trade and CL happens to be the instrument.
Like MF says in his book, a trader need to know who he is. MF says, he knows who he is thats why he never tries to be like George Soros. He knows he never will be like George Soros. He accepts that, sticks to his knitting and makes a killing with his craft. I am not making a killing. Just trying to be consistent.
CL hits intra day high 99.98. Up 1.26%.
I'm talking about more then good news bad action, I just used that as an example. Price action is about how price is reacting to something else, not itself.
I'm dead serious. Look, what kills most guys is leverage. The reason why retail guys actually have a "slightly" higher success rate is that most of them are not using the same leverage as prop guys. Leverage speeds up the game very fast. Very few people can trade at that speed over the long term.
Another problem for most of them is over trading. Over trading with leverage not a good formula. Most of them also lacked discipline. Most of them were just in this game for the quick money, not because they had a real passion for trading. You would be amazed at how many people came into my office and the first thing they told me is that they were passionate about trading and passion was one thing they actually didn't have. At the end of the day, most people lie to themselves as much as they lie to others.
Another factor was directional trading. The market neutral guys tend to survive in this game. Even Fisher himself started saying this recently that they were spreading everything. Just punting on direction each and every day over and over is a tough gig. Directional trading is pretty simple and straightforward if one is not using leverage. But directional trading with leverage is a whole other beast.
I never said i am trading based off price reacting to itself. I am looking at how price reacts to a level, DXY, inventory report, macro news, risk on vs risk off etc..
It's tough to lay out everything on a chart while trading.
When Fisher was doing the charity for kids thing you could see he was spreading bonds vs sp, corn vs wheat etc. Its to bad there is not link for that. I asked them to make that available. They should put the video up, charge a few bucks and give it to charity. Well worth checking it out.
Would have loved to see that. I can tell you from the 50 or so prop firms in Chicago, they are all spread shops or HFT. The professional trading community just does not engage that much in directional trading or scalping. A big part of that is because they have other edges to exploit. It's also much easier to leverage spreading strategies vs directional trades. There is a video that Fisher did in Vegas last year where he spoke about spreading. That was the conference he did with Dr. J.