The ACD Method

Quote from deltastrike:

How do you trade this play (especially in ToS)? This thread is interesting but I'm still pretty far from confidently wrapping my head around it.

I think ya got some more reading to do before you even begin to ask for the holy grail lol
 
Well guys, I have some sad news to report. One of our members of this thread thinks trading is nothing but gambling and ACD is for naught. I guess I'm just going to have to work harder in 2012 on this thread to show just how precise ACD can be for our friend RCG. I thought I did that over the previous 500 pages. But obviously I've been half assing it around here. LOL. Hang on to your seats in 2012, this thread is going to triple!
 
Wow,

Really, bummer? I thought he'd mentioned that it was really giving him an extra edge with his own system. That's too bad. Well best of luck to him in the new year, and here's to hoping Mav continues to enlighten us all!

Cheers to All,
 
Quote from Quon:

Wow,

Really, bummer? I thought he'd mentioned that it was really giving him an extra edge with his own system. That's too bad. Well best of luck to him in the new year, and here's to hoping Mav continues to enlighten us all!

Cheers to All,

You think you are disappointed! RCG was one of the biggest ACD proponents. I think what happens is, trading is very very difficult. Especially over time. And when one has setbacks it's easy to fall into that line of thinking. I know I have in the past as well. It's completely normal. But there actually is a built in edge in the markets. It's called inflation. Inflation does drive risk assets higher over time. This is what makes futures trading harder then equities, or at least commodity trading (non risk assets). Commodities are consumed for the most part. They don't have to go up. If one understands the way markets are structured, there are edges all over the place that are structural in nature. What poisons this of course is leverage. Leverage is like alcohol. A little bit is fine. But too much and it can make a good night turn into a disaster.
 
Quote from Shanb:

Gold and Silver had a bit of a reversal today...with silver showing more strength. These things were so oversold a bounce was inevitable. Looked like some capitulation...definately going to be watching these next month/year.

We missed one decent spread this month...SLV-GLD. Spread came in quite a bit today. I would attach a pic but I don't have access to my computer. Maybe Mav could help!

Shan, we need to talk. LOL. This is NOT what I want to see a spread doing. No cookie today for you.
 

Attachments

Quote from Maverick74:

Here is the YTD on Silver over Gold. Got absolutely crushed all year.

You'll notice Shan that the top of this spread coincided with the top on the ES. Silver is an industrial metal and usually much more correlated to the ES. So getting long the Silver/Gold spread is a synthetic long ES position.
 
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