The ACD Method

I must have missed it in the book, but when are we supposed to exit a winning position ? It seems you have to hold on until the end of the day, is that right ?

I think it is indeed a great system, however I cannot strees enough the importance of using it where you have volatility, otherwise you get killed. I disagree you can use it with "anything.". During an interview Fisher actually admitted it does not perform too well on the S&P500 for example.
 
Quote from MrFuture:

I must have missed it in the book, but when are we supposed to exit a winning position ? It seems you have to hold on until the end of the day, is that right ?

I think it is indeed a great system, however I cannot strees enough the importance of using it where you have volatility, otherwise you get killed. I disagree you can use it with "anything.". During an interview Fisher actually admitted it does not perform too well on the S&P500 for example.
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You absolutely can use ACD for anything and I've done really well in markets like the s&p 500. I should note that I use the system very differently then he does. I have a yet to find a market that it does not work well on. The macro even works with mutual funds!

To answer your question, I use pivot levels, ATR and A values to exit. Let me say this again because I believe it is of the utmost importance. You have to make ACD work with your personality. What Fisher writes about in his book is untradeable. He told me this much in person. The book was meant to be a context for which to build your trading system.
 
Quote from Maverick74:

You absolutely can use ACD for anything and I've done really well in markets like the s&p 500. I should note that I use the system very differently then he does. I have a yet to find a market that it does not work well on. The macro even works with mutual funds!

To answer your question, I use pivot levels, ATR and A values to exit. Let me say this again because I believe it is of the utmost importance. You have to make ACD work with your personality. What Fisher writes about in his book is untradeable. He told me this much in person. The book was meant to be a context for which to build your trading system.
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Thank you very much for your reply Maverick.

I like that you mentioned ATR for exits, I think it is extremely important. I do not know specifically how you use it of course, but to me it is THE tool that tells me how much move is left for the day, and whether or not it is worth keeping the position open to catch some more, or if it is most likely done for the day.

Someone once built a cool indicator that can be added on Metatrader, where basically at the bottom of the screen you would have a live count of points left for the day, based on the ATR and days of your choice. It is an excellent way of knowing where you are at.
 
Quote from MrFuture:

Thank you very much for your reply Maverick.

I like that you mentioned ATR for exits, I think it is extremely important. I do not know specifically how you use it of course, but to me it is THE tool that tells me how much move is left for the day, and whether or not it is worth keeping the position open to catch some more, or if it is most likely done for the day.

Someone once built a cool indicator that can be added on Metatrader, where basically at the bottom of the screen you would have a live count of points left for the day, based on the ATR and days of your choice. It is an excellent way of knowing where you are at.
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I've got an indicator on TOS that shades the ATR range and as the market makes new highs or lows the shaded area adjusts so you can see exactly where the ATR is on both the upside and the downside. Very nice visual.
 
Quote from Maverick74:

I've got an indicator on TOS that shades the ATR range and as the market makes new highs or lows the shaded area adjusts so you can see exactly where the ATR is on both the upside and the downside. Very nice visual.
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Wow, that's even better, you can actually see it on the chart then, very nice :)
 
Quote from MrFuture:

Wow, that's even better, you can actually see it on the chart then, very nice :)
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Oh wait a sec, by TOS you mean Think Or Swim ? 'Cause that's what I mainly use for stocks...is that one of the existing indicators, or you built it ? When I look under ATR I do not see anything other than the usual ATR line at the bottom....Thanks !
 
Quote from MrFuture:

Oh wait a sec, by TOS you mean Think Or Swim ? 'Cause that's what I mainly use for stocks...is that one of the existing indicators, or you built it ? When I look under ATR I do not see anything other than the usual ATR line at the bottom....Thanks !
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A friend of mine built it for both TOS and TS. I can't build shit. LOL.
 
Quote from Maverick74:

I've got an indicator on TOS that shades the ATR range and as the market makes new highs or lows the shaded area adjusts so you can see exactly where the ATR is on both the upside and the downside. Very nice visual.
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Sounds pretty slick, anybody know of something similar for NT?
 
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