The ACD Method

Maverick74 · Dec 7, 2011

Quote from Shanb:

Everything looks to be near the top end or bottom end of their respective ranges. Tech is showing relative weakness again...so watching this for some cues on if we get some follow through!

Shan! Welcome back. I thought maybe you were backpacking around Europe or something.

BTW, we are having a meeting on Monday night. I hope you can make it.

Shanb · Dec 7, 2011

Quote from Maverick74:

Shan! Welcome back. I thought maybe you were backpacking around Europe or something.

BTW, we are having a meeting on Monday night. I hope you can make it.

Hahah I wish... Or maybe somewhere down south enjoying some sunshine

. Forsure I will try to make it, thanks!

Shanb · Dec 7, 2011

Quote from amsterdam:

and never, never average down.

"Losers average losers"
- PTJ

Idk...I think it depends on what you are trying to accomplish. Some of the best traders I know do mean reversion based trading and routinely scale in to positions.

If you mean Average in for the sake of trying to bail out of a bad trade than your prob right. If you have a plan that involves multiple legs into a position and you can manage your risk...i think you can do well.

Maverick74 · Dec 7, 2011

Quote from Shanb:

Hahah I wish... Or maybe somewhere down south enjoying some sunshine . Forsure I will try to make it, thanks!

Are you making any progress on the pair trading?

Maverick74 · Dec 7, 2011

There goes Crude. Confirmed A down. We saw this coming. Price action on Crude has been weak for days now.

Shanb · Dec 7, 2011

Quote from Maverick74:

Are you making any progress on the pair trading?

Not nearly as much as I want. Tried to implement some stuff into tradestation and its a no go so far. Well see where it goes, nothing much to add right now.

Hows everything on your end? I know you had a lot of projects coming up with the CTA, greybox etc...

Maverick74 · Dec 7, 2011

ES just bounced off the weekly A down at 1245.

Quon · Dec 7, 2011

BMY continuing to show real strength. A up today, and good price action yesterday. XLV names continuing to outperform in equities.
I have 33.54 as the monthly A. It just made an attempt and backed away.

Maverick74 · Dec 7, 2011

JNJ breaking out! Confirmed A up. That is how quiet it is today, JNJ is breaking out.

medicsix · Dec 7, 2011

Quote from RCG Trader:

Being the market's "bitch" is a bit strong. More empowering is a view similar to an NFL defense. Read, and react. This is what you do. The offense will get 3 to 5 yards per play if you read wrong. But you can get some sacks, and maybe even some take aways.

Build a good defense, the rest will take care of itself. ACD is a most powerful defense. Go in there, day in and day out, and you will have a winning record.

Defense wins championships in the the NFL, and in trading.

My apologies if that was offensive as that was not my intent. I often revert to firehouse humor in the wrong environment.

Allow me to clarify. My point was that I don't predict. When I try to, I usually lose. I have much more faith in my ability to react without a predetermined bias. If my gut tells me higher, but the market shows me lower, I admit the market is right and go with it. I don't chase, I don't average down and am willing take small losses on properly placed trades knowing that one or two winners will take care of it.

I'm not a fulltime trader. I don't make ridiculous amounts of money from trading. This is what works for me and puts a decent bit of extra "walking around" money in my pocket.