The ACD Method

Nobody want's to be the face plate on the train.

What goes up must come down

Remember upstairs, your job is to make money. Downstairs, your job is not to lose money.

Like you said before, the market is going to go where it is going to go. The market is never wrong

Entry is easy and exit is a whole lot harder.

The people I think who can make consistent amounts of money are the people that worry about protecting themselves, the upside will take care of itself, you have to play good defense. This is Chicago football under Mike Ditka. No turnovers, 3 yards, and a cloud of dust.

http://www.turtletrader.com/borish-baldwin.html

I wanted to bump this article again there is some good stuff in there that to me goes along with Mark Fisher's way of trading. Interesting ideas about system vs discetionary, if you pay close attention Baldwin is saying that order flow creates the reversion to the mean trade, great article.
 
This video is not about ACD method but will definetly enhance execution part of ACD.


Here is real treat form one of the original master Peter Steidlmayer. Same ideas but with some nice twists to it. Basically, his new creation VOLUME STRIPS. The way electronic markets have evolved, market are back to time period of 1840's. To trade now , we need to look at Volume Strips- fascinating to say the least. Some of the quotes I picked up from his presentation.

1) Question always on his mind " Would this trade self develop"?

2) majority of electronic traders are taking 100% risk of price discovery. These Volume strips are designed to reduce the risk to 50%.

3) You want to land on supply not on price.

4) Trade new orders not new price. and many many more.


Most exciting feature per Steidlmayer is the ability to place trades ( auto trade) ahead of time and thus trade multiple instruments etc..


one thing to consider is that Peter Steidlmayer, the creator of Market Profile, no longer advocates the use of Market Profile for market analysis. While many current Market Profile practitioners may argue the point, it is at minimum, highly interesting that the man credited with its development no longer considers it viable; take that for what its worth... Steidlmayer is now suggesting the use of a new paradigm called 'Volume Strips'. You can find more information here, if interested: Steidlmayer Volume Strips: J. Peter Steidlmayer


Steidlmayer Volume Strips: J. Peter Steidlmayer

not sure why the link is not coming up active. I just watched the video. Its available on CME web site .

: Commodity Indexes
 
Whats the best way to post charts so that they are permanent in the forum. Screencast- tool i use to post charts have storage limitations and get deleted after some time.

Thx.
 
Quote from mfbreakout:

Whats the best way to post charts so that they are permanent in the forum. Screencast- tool i use to post charts have storage limitations and get deleted after some time.

Thx.
More...
click reply, scroll down, click choose file, attach your chart
 

Attachments

Yeah, I remember reading that Steidlmayer no longer recommends MP. Bets are it's because shrewd software developers figured out how to replicate MP analysis closely enough that his analysis no longer was proprietary. Now I understand he's building out custom databases to leverage his concepts.

Because auction market theory is the only paradigm on market behavior that makes sense to me, I think the principles behind it fit well with ACD. So, I've been trying to put them together. ACD pivots don't necessarily make sense to me as capturing the "meat of the market", but volume bulges do.

See the attached. I was going to send this to a PM with Quon as I owe him a response, but figured I might as well put it up here.

Ignore the stuff on the lower left. Everything else is ACD. I've built it out so that there's an option to color the bg green or red if price is above/below the monthly A levels (so I don't have to keep throwing up A levels, which gets confusing), but only use that option on the top 60 minute chart.

The volume bulges aren't "volume strips" per se. But one standard deviation of total volume shows up as a lighter color. The volume profiles on the far left are composite of several days. The dark blue lines are daily ACD pivots.

Quote from mfbreakout:

This video is not about ACD method but will definetly enhance execution part of ACD.


Here is real treat form one of the original master Peter Steidlmayer. Same ideas but with some nice twists to it. Basically, his new creation VOLUME STRIPS. The way electronic markets have evolved, market are back to time period of 1840's. To trade now , we need to look at Volume Strips- fascinating to say the least. Some of the quotes I picked up from his presentation.

1) Question always on his mind " Would this trade self develop"?

2) majority of electronic traders are taking 100% risk of price discovery. These Volume strips are designed to reduce the risk to 50%.

3) You want to land on supply not on price.

4) Trade new orders not new price. and many many more.


Most exciting feature per Steidlmayer is the ability to place trades ( auto trade) ahead of time and thus trade multiple instruments etc..


one thing to consider is that Peter Steidlmayer, the creator of Market Profile, no longer advocates the use of Market Profile for market analysis. While many current Market Profile practitioners may argue the point, it is at minimum, highly interesting that the man credited with its development no longer considers it viable; take that for what its worth... Steidlmayer is now suggesting the use of a new paradigm called 'Volume Strips'. You can find more information here, if interested: Steidlmayer Volume Strips: J. Peter Steidlmayer


Steidlmayer Volume Strips: J. Peter Steidlmayer

not sure why the link is not coming up active. I just watched the video. Its available on CME web site .

: Commodity Indexes
More...
 

Attachments

Quote from [Proximo]:

Volume Strips as he likes to call them have been around for 10+ years.

Traditional Market Profile is like using a butter knife to cut a steak.
More...

Its all indicator crap


maybe 80 percent of all this is just risk mangment really, rest you could use different reasoning for getting in the water buying/selling points...

Although some people on the floors can steal, getting harder to do though, front running......
 
Quote from Maverick74:

How can you not do well? Just sell it! Seriously, 15 BOJ interventions later and still going down. And to think, some people don't believe in trends...
More...

Until you sell it!! for a few hundred lots.... it goes against you 3 percent of portfolio and you wonder what to hang onto ?

Just sell more ?? noo >?
 
Here are 2 charts of cl for 10-21-201 as i like to day trade using ACD and levels. 3rd chart is of Volume Profile with some fibs.

I am trying to add Volume profile to my skill set but so far no meaningful progress. Looking for feedback as how Volume profile chart could have helped.

$CL_F scenario $$ http://j.mp/ofElgR

http://www.screencast.com/t/WlchRtLZhx

http://www.screencast.com/t/pjPRcfaVWs5r

On Volume Profile chart. Thin Maroon lines= CLVN= Composite low volume nodes

Thick Maroon Lines= VPOC= Volume Point of Control.

Green lines= CHVN= Composite High Volume Nodes.

Orange dashed line= Open Gaps.
 
Quote from mfbreakout:

Here are 2 charts of cl for 10-21-201 as i like to day trade using ACD and levels. 3rd chart is of Volume Profile with some fibs.

I am trying to add Volume profile to my skill set but so far no meaningful progress. Looking for feedback as how Volume profile chart could have helped.

$CL_F scenario $$ http://j.mp/ofElgR

http://www.screencast.com/t/WlchRtLZhx

http://www.screencast.com/t/pjPRcfaVWs5r

On Volume Profile chart. Thin Maroon lines= CLVN= Composite low volume nodes

Thick Maroon Lines= VPOC= Volume Point of Control.

Green lines= CHVN= Composite High Volume Nodes.

Orange dashed line= Open Gaps.
More...

With regards to volume profile, the sole way I use it is right now is just to confirm where the "pivot" actually is. Otherwise, I don't trade off it; just use it to gain a perspective on the day.

So as a swing trader, if my primary signal generator wants me long, and we're above the monthly A, approaching the weekly A up, and there's a daily A down against a volume bulge (either yesterday's or a composite of days), I'll get long real big on size on the snap of the rubber band, then pyramid a little above the daily A up. Whereas before I'd just wait for some strength and take one unit of size.

To me, using volume-by-price makes better sense than using the mathematical pivot calc Fisher describes to identify the "meat of the market".

Just my take on it. Your mileage may vary. Btw, would definitely be interested in the Steidlmayer material if you find it.
 
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