The ACD Method

Quote from Phlub:

I have read through quite a bit of this forum. Lot's of very good stuff (especially for ET).

I am working through the book. Doing some simulated trading, re-reading, etc. This back and forth process seems like a good way for me to absorb these concepts.

One thing that I keep running up against (and I apologize if I missed this in earlier posts on this forum). There is a big emphasis on trading the primary market to get the opening range. With the advent of ICE, Globex, etc., there are very few contracts that you can really identify an opening price. That would seem to make many of the examples in the book less relevant in today's market. Does this suggest that the strategy has to be modified a bit to make it work these days? Has anyone experimented with 'estimated opening ranges' by taking more of a volume weighted average of trades pre-open? I have noticed Maverick talks a lot about much longer time frames. Since he appears to have good staying power here, is it safe to assume that the most of the ACD method has to be applied differently (as in longer time frames) than was the case 10-15 years ago?
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I find the open still to be relevant. Most of the option liquidity still centers around the pit trading hours and to be perfectly frank with you, the options drive almost all of the activity, not futures. CL for example has one of the deepest and most liquid option markets in the world. Add that all the calendars that get traded as well as the crack and spark spreads and the options on them and you will understand why you need to really focus on the RTH hours.

My background is in options and I can tell you right now, the smart money and the big money is trading the options, not the futures. Sure, this stuff trades 24 hours a day on globex but I'm not going to chase Johnny one lot around on the DOM to discern meaningful price action.
 
Quote from Maverick74:

I find the open still to be relevant. Most of the option liquidity still centers around the pit trading hours and to be perfectly frank with you, the options drive almost all of the activity, not futures. CL for example has one of the deepest and most liquid option markets in the world. Add that all the calendars that get traded as well as the crack and spark spreads and the options on them and you will understand why you need to really focus on the RTH hours.

My background is in options and I can tell you right now, the smart money and the big money is trading the options, not the futures. Sure, this stuff trades 24 hours a day on globex but I'm not going to chase Johnny one lot around on the DOM to discern meaningful price action.
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Thanks - that makes sense.
 
for the record Fisher recommended a pair, Mav is he watching this thread? long ccj (cameco who makes uranium out of Canada), and short yen. That's a pair from the horses' mouth!
 
Quote from kinggyppo:

for the record Fisher recommended a pair, Mav is he watching this thread? long ccj (cameco who makes uranium out of Canada), and short yen. That's a pair from the horses' mouth!
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I think "somebody" in NY is reading this thread. :)
 
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