The ACD Method

Quote from baggerlord:

Awesome thread. Unusual on this site. I haven't been able to figure out exactly how to calculate weekly and monthly A values. My best guess is:

Monthly: Place levels around the first day of the month based on whatever % of daily ATR one chooses to use

Weekly: Place levels around first hour or two of the week? Just using the hourly ATR seems to work decently well based on eyeballing some charts.

I'm not lazy, got the book coming the mail. Just got a little down time this weekend browsing some charts :)
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Got the book in the mail last night, answered my own question. My idea was close enough, now got some work to do to make ACD my own. Thanks again for this thread. Would never have stumbled on ACD without it.
 
Quote from baggerlord:

Awesome thread. Unusual on this site. I haven't been able to figure out exactly how to calculate weekly and monthly A values. My best guess is:

Monthly: Place levels around the first day of the month based on whatever % of daily ATR one chooses to use

Weekly: Place levels around first hour or two of the week? Just using the hourly ATR seems to work decently well based on eyeballing some charts.

I'm not lazy, got the book coming the mail. Just got a little down time this weekend browsing some charts :)
More...

Welcome to the thread. Please read what I said earlier about using static opening range and A levels. You really want to base those levels off of whether or not you trade breakouts, riding the trend or fading moves. Because they are all very different.

Also, another thing that has not really been discussed on here because a lot of people are focusing so much on A levels, are stop levels.

The irony is that the entry level is probably the most insignificant part of the system and everyone seems to be focusing on that. It's the exits that make you money!

So your opening range levels and your A levels play a big part of where your stops are. Another reason why you need to spend some time thinking about how you want to set those levels. For this reason many people use the pivot ranges over opening ranges and A levels. The pivots give you a tighter stop.

I have heard very few people on this thread talk about stop levels. The stops are the most important part of the system! Any system really.
 
Quote from Maverick74:

Welcome to the thread. Please read what I said earlier about using static opening range and A levels. You really want to base those levels off of whether or not you trade breakouts, riding the trend or fading moves. Because they are all very different.

Also, another thing that has not really been discussed on here because a lot of people are focusing so much on A levels, are stop levels.

The irony is that the entry level is probably the most insignificant part of the system and everyone seems to be focusing on that. It's the exits that make you money!

So your opening range levels and your A levels play a big part of where your stops are. Another reason why you need to spend some time thinking about how you want to set those levels. For this reason many people use the pivot ranges over opening ranges and A levels. The pivots give you a tighter stop.

I have heard very few people on this thread talk about stop levels. The stops are the most important part of the system! Any system really.
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Same thing with targets. Knowing when to let a trade run or take profits at a level. Or if the R:R is even good enough to trade. I've been logging my trades and already see that OR as a % of ATR is very important. ATR is also usually a natural snapback point like the A-levels.
 
Quote from Shanb:

Same thing with targets. Knowing when to let a trade run or take profits at a level. Or if the R:R is even good enough to trade. I've been logging my trades and already see that OR as a % of ATR is very important. ATR is also usually a natural snapback point like the A-levels.
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ATR is something I've noticed too. Typically I shoot for taking something if not everything off the table at an ATR. There does seem to be something of a natural selling/buying pick-up at these levels, (though I've also seen an instrument continue along like the ATR wasn't even there).

I've tried trailing stops in the past, but they can really depend on each individual product, (for instance, trying the A level as a trailing stop). Some of the best trades I've had have been by simply doing like RCG has mentioned a few times: wait for an A, and enter on a plain old run of the mill buy or sell signal in the direction of the A. For a trade like that I just use the type of stop that's most typically associated with the signal, (top of this bar, or bottom of that). It's been a chipping away at it strategy, but it's been ok so far.

I know I have a long way to go, and a number of hours that I need to get under my belt, but at least the concept of ACD is keeping me in the game where my chops can't save me. Here's to the next several thousand hours of study, I can't help but think it'll be worth it.
 
Think I'm gonna work on putting together an end of day only trading plan based on ACD. Will post my ideas once they are worth posting. Thats the only timeframe I can trade right now and I haven't found an edge with my daytrading strategies on an EOD timeframe but incorporating ACD it looks pretty promising.
 
Quote from baggerlord:

Think I'm gonna work on putting together an end of day only trading plan based on ACD. Will post my ideas once they are worth posting. Thats the only timeframe I can trade right now and I haven't found an edge with my daytrading strategies on an EOD timeframe but incorporating ACD it looks pretty promising.
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That would be great, appreciate if you post. :cool:
 
Quote from baggerlord:

Think I'm gonna work on putting together an end of day only trading plan based on ACD. Will post my ideas once they are worth posting. Thats the only timeframe I can trade right now and I haven't found an edge with my daytrading strategies on an EOD timeframe but incorporating ACD it looks pretty promising.
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Count me in to be of any assistance. Consider starting an EOD ACD thread.
 
got a breakout trade here in Bidu, long from 124 area will hold it for a while open target.


bidu pivot 123.85
pivot range 131.91-115.79
earnings Oct 20.




pivot = ( high + low + close ) / 3 ,

the range two lines are calculated like that,

range = ( high - low ) / 2 ,

1st line ( above the pivot ) = pivot + range ,
2nd line ( below the pivot ) = pivot - range ,


logical stop short term frame would be 122, I have no stop, under this I will begin to add.
 
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