Copyplus is very close. He is correct about the consistency thing. And he is very close with the relative comparison thing.
The ACD Method
- Thread starter sbrowne126
- Start date
Something wicked this way comes...
From my limited knowledge of ACD, I think the key is to find a period that is significant in terms of trades/volume with respect to the time frame you trade.
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The teacher is not going to answer this one. I'm going to wait for someone to correctly say it and I'll confirm it. This goes to the heart of the ACD methodology. If you don't understand this concept,it will be very hard to make money using this approach. Or really any approach in trading. I know someone on this thread knows the answer. So get them to say it Robert!
Well it's clearly not obvious to me, but one of the things our mentor has mentioned many times is the fact that ACD levels and their resultant output stats are not obvious to anyone but the individuals maintaining them.
Something on his mind master Yoda has, hmmm?
BTW, rb/ho down to 22 cents today. The front cal spread helping the decline in RB. That turned out to be a beautiful failed monthly A up.
Thanks for this. I'm not able to figure out how to set up the combo as you mention. The IB documentation I find shows a combo screen in TWS 910. I'm now on 950.2 standalone and there is no such screen. Spread trader does not allow creation of the spread for some reason.
TWS will provide data/charts for TUT and NOB, but the numbers shown simply do not make sense to me. CME does not provide contract specs either.
Nevertheless I can create the spread as you mentioned using Sierra Charts, and as TYX and TNX are 10x Interest Rates, it is easy to understand. Unfortunately there is no Index for the 2 year treasury, so I will need to figure out how to interpret TUT as per data TWS provides.
TUT is specified as 2 ZT : 1 ZN, the chart price is 78'010 and I cannot reconcile that with any of the quotes.
Natty flirting with moving into backwardation on the front spread. Just as she confirms on the 30 day.
Here is a hint. ACD is a window into the market. It's not about drawing lines or magic levels or having the right count. It's about recognizing relative value and marginal change. When you measure marginal change, the actual numbers are less important then the actual change itself. Many ACD practitioners lose sight of the forest by staring at the trees.