The ACD Method

Quote from gmst:

Maverick,

I consider myself more skilled trading FX compared to trading ES. Its clear that I am better-off trading only FX and I should stop trading ES. However, I have persisted till now thinking that I am not profitable trading ES because its an equity index and it has different kind of movements compared to 6E. And with more screen time and experience I will be able to trade ES also profitably. My reasoning is if I become successful in developing a methodology for trading ES, then it will add diversification to my equity curve.

But for last 4 months, I have made money every month trading FX and lost money every month trading ES. So, now I am thinking if I should continue trading ES or just stop trading it and only concentrate on trading FX. What is your opinion please.
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I think you should stop trading ES. LOL. As I've said before on this thread, you can't trade crude oil the way you trade ES. And you can trade FX the way you trade Gold, etc. Every product is different. The ACD aspect of it is the same, the price action aspect of it is different.

If you are an ACD purist like I am, I can pretty much trade any correlated risk asset. The non correlated assets are much harder for obvious reasons. I try to post trades on this thread from every asset class just to show people that it doesn't matter what product you are trading, ACD works just as well. I will try to continue to do that this year.
 
Quote from gmst:

Maverick,

I consider myself more skilled trading FX compared to trading ES. Its clear that I am better-off trading only FX and I should stop trading ES. However, I have persisted till now thinking that I am not profitable trading ES because its an equity index and it has different kind of movements compared to 6E. And with more screen time and experience I will be able to trade ES also profitably. My reasoning is if I become successful in developing a methodology for trading ES, then it will add diversification to my equity curve.

But for last 4 months, I have made money every month trading FX and lost money every month trading ES. So, now I am thinking if I should continue trading ES or just stop trading it and only concentrate on trading FX. What is your opinion please.
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If I may step in here.

ES and 6E do not have same personality. If you are trying to trade ES the way you trade 6E, it will difficult.

ES is famous for it's habit of back and fill. Whilst FX tends to trend a bit more smoothly. If you are going to trade ES with ACD, you might need to pan out to wider opening range.

My opinion, your mileage may vary.
 
Quote from Maverick74:

My favorite spread of the day. XLF/XLU Financials over utilities.
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You have spoken about commodities. Commodities is the true indicator of inflation I have found, is there a spread that would cover that? Or an ETF? I include the Aussie in my trade, but that is for gold only. Are their others that you are aware of besides USD/CAD for oil?

Just wonderin.
 
Quote from Maverick74:

I think you should stop trading ES. LOL. As I've said before on this thread, you can't trade crude oil the way you trade ES. And you can trade FX the way you trade Gold, etc. Every product is different. The ACD aspect of it is the same, the price action aspect of it is different.

If you are an ACD purist like I am, I can pretty much trade any correlated risk asset. The non correlated assets are much harder for obvious reasons. I try to post trades on this thread from every asset class just to show people that it doesn't matter what product you are trading, ACD works just as well. I will try to continue to do that this year.
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Thanks Mav for your thoughts. I am primarily a price-action trader (the way you define it - looking at what a particular market is doing, vis-a-vis other markets). Having said that, a lot of research that I have done on intra-day price movements has been done on Euro so its tailor-made for that. Incorporating ACD as part of my decision making process is something that I will like to do this year.
 
Quote from RCG Trader:

If I may step in here.

ES and 6E do not have same personality. If you are trying to trade ES the way you trade 6E, it will difficult.

ES is famous for it's habit of back and fill. Whilst FX tends to trend a bit more smoothly. If you are going to trade ES with ACD, you might need to pan out to wider opening range.

My opinion, your mileage may vary.
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Thanks for chipping in :) Thoughtful opinions are always welcome!
I have thought about it but I am yet to pin-down the differences between personality of ES and 6E. I know 6E also backfills at least way more than 6A for example. I think primary difference between 6E and ES is that ES RTH has a definite start and end time - globex volume being too less, whereas Euro spot trades round the clock in high volume in different geographies. In my limited experience, this aspect causes a huge difference between the behavior of ES and Euro. E.g. 3pm spikes in ES are not found in 6E.
 
Quote from mfbreakout:

One can not be a good trader with different and opposing trading methods. Decide on your method.

For Volume profile , read Jim Dalton books and you can watch futurestrader71.com webinars.

I am sure there are active forum within elite trader. Hit search function.
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Took one look at that..... no thanks!
 
Good to see alot of new participants in the thread! I caught a nasty bug a couple of days ago, so I am still in California getting some rest.

John, you mentioned that SLV-GLD spread? That's looks like a monster intraday move. You said this spread could continue to widen if the spoos continue rallying? Is this because of Silver's industrial usage, not quite sure I understand.
 
Quote from MBC:

Took one look at that..... no thanks!
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Curious as to why you would say that? MFB seems to do pretty well for trading one instrument, and he's giving you his secret sauce lol.
 
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