The ACD Method

I'm going to post the monthly levels for some of the bigger names.

JPM 32.87

MS 16.22

BAC 6.10

C 29.37

GS 101. 46

C, MS and JPM above their monthly A ups already.
 
Maverick, its obvious that to trade anything, its better to watch correlated markets and you do watch a lot of stuff. But how many stocks, futures, fx do you actually trade everyday ? Just curious.
 
Quote from gmst:

Maverick, its obvious that to trade anything, its better to watch correlated markets and you do watch a lot of stuff. But how many stocks, futures, fx do you actually trade everyday ? Just curious.
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I currently have positions in CL, ES, AUD/USD, VIX, EUR/USD, AAPL and VMW. I trade everything.
 
Quote from Maverick74:

I currently have positions in CL, ES, AUD/USD, VIX, EUR/USD, AAPL and VMW. I trade everything.
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Thanks, yes that is a manageable number definitely. but do you normally have positions in more than 20 or 30 instruments in a day also? That will be a little bit tough to monitor and manage, No ?
 
Quote from gmst:

Thanks, yes that is a manageable number definitely. but do you normally have positions in more than 20 or 30 instruments in a day also? That will be a little bit tough to monitor and manage, No ?
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There are not that many signals. I prefer to be in the strongest and weakest products. If 5 risk assets are breaking out, why do I need to be in all 5 of them when one of them is probably stronger then all the others.
 
Quote from Maverick74:

There are not that many signals. I prefer to be in the strongest and weakest products. If 5 risk assets are breaking out, why do I need to be in all 5 of them when one of them is probably stronger then all the others.
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Correct, especially with such high correlations over the last 3 yrs.

Reason why i asked above is that I can perfectly see you trading 100 different names everyday as an options trader, with a complicated spreadsheet setup and a model to hedge your Greeks during the day. Because, your actions during the day are being driven by the model.

However, trading multiple names (>20) in a day using ACD framework in a discretionary fashion, where a trader needs to make multiple decisions must be a different ballgame altogether. Unless you have got your ACD methodology completely worked out (as precise as the B-S methodology and contemporary vol modelling) and coded up using simple formulas in excel.
 
Quote from gmst:

Correct, especially with such high correlations over the last 3 yrs.

Reason why i asked above is that I can perfectly see you trading 100 different names everyday as an options trader, with a complicated spreadsheet setup and a model to hedge your Greeks during the day. Because, your actions during the day are being driven by the model.

However, trading multiple names (>20) in a day using ACD framework in a discretionary fashion, where a trader needs to make multiple decisions must be a different ballgame altogether. Unless you have got your ACD methodology completely worked out (as precise as the B-S methodology and contemporary vol modelling) and coded up using simple formulas in excel.
More...

If I had the resources, I could put on 100's of trades a day. That's a different game though. I'm trying to be more focused.
 
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