The ACD Method

Quote from Maverick74:

Wow, just saw his thread. I think Lescor's numbers show exactly what is going on in the industry, especially in the equity world. I just talked to my mentor from my Worldco days 10 years ago. He was bar none the best equity trader I have "personally" met. He was the definition of consistency. So I was eager to ask him how he was doing in this market environment. He is a tape reader for listed stocks. It turns out he quit trading for the most part in 2009. He said the equity industry just completely changed. Completely new world. That was pretty shocking.

As for me personally, I ran a market neutral options strategy utilizing ACD for equities Jan through Aug and had my best risk adjusted performance ever. The last QTR of the year I began experimenting with other strategies partly due to some of the changes at my firm which you are aware of Shan. I started making some transitions. I was pleased with the last QTR but I did a lot less trading and a lot more building and developing of new strategies.

Most people who know me know I am "always" working on new ideas and new strategies. Regardless of whether what I'm doing at the time works or not because I'm all too aware of how quickly things change in this business. I have discussed that at length on this thread.
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I do not know anyone who works at a prop firm, so my questions are based off my experience running a business and general business experience.


Maverick74, your ex boss- the best equity trader quit business because equity industry have completely changed ? Where was his firm research , intellectual capital to help him with strategies to trade in a changing environment?

Good traders are tough to come by. If a trader at a prop firm has to be a top notch trader plus he has to come up with strategies to keep up with changing market, why even bother working for a firm?

Prop firm business model may be different from a typical business model. Why put research and trading burden on on trader?

Asking a trader to be a both a trader and an expert on running models to come up strategies/ an edge is like asking TOM BRADY to come up with game tactical and strategic game plan for each team and subsequently each player New England Patriots are playing.

A good firm should be able to have a separate research department to feed traders ideas?

This model seems to be more effective then letting a star equity trader quit because markets have changed?

You can tell I am confused (lol).
 
Quote from Shanb:

Hmmm, perhaps they are trying to get more algo based people in there. They are only trading futures from what I remember.
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Hello,

I can not PM you, guess I am too new, if possible could you send me a PM so I can reply with a question about prop firm etc.

Its specific to me, not ACD so no need to post!

Thanks!
 
Quote from mfbreakout:

I do not know anyone who works at a prop firm, so my questions are based off my experience running a business and general business experience.


Maverick74, your ex boss- the best equity trader quit business because equity industry have completely changed ? Where was his firm research , intellectual capital to help him with strategies to trade in a changing environment?

Good traders are tough to come by. If a trader at a prop firm has to be a top notch trader plus he has to come up with strategies to keep up with changing market, why even bother working for a firm?

Prop firm business model may be different from a typical business model. Why put research and trading burden on on trader?

Asking a trader to be a both a trader and an expert on running models to come up strategies/ an edge is like asking TOM BRADY to come up with game tactical and strategic game plan for each team and subsequently each player New England Patriots are playing.

A good firm should be able to have a separate research department to feed traders ideas?

This model seems to be more effective then letting a star equity trader quit because markets have changed?

You can tell I am confused (lol).
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Maybe the star reached his number (Money Never Sleeps). It is a grind, and you need to enjoy it.
 
Quote from Maverick74:

Here are the overnight moves in the currencies. Failed A up in the Euro three times and failed A up in the Aussie.
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Now, that's odd because I caught a nice 50 pips up off of my A levels on the daily frame. I think the Euro is going to show strength for a bit, mainly because the money center banks want to dump at a decent price before the reaper comes. I have looked and looked and I do not see how the Eurozone will survive the next 24 months.
 
Quote from RCG Trader:

Now, that's odd because I caught a nice 50 pips up off of my A levels on the daily frame. I think the Euro is going to show strength for a bit, mainly because the money center banks want to dump at a decent price before the reaper comes. I have looked and looked and I do not see how the Eurozone will survive the next 24 months.
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A up to A down in the Euro 100 pips. Just bounced off the A down.
 
Quote from MBC:

As of this writing it has recovered 50 percent of the "gap" down as you say or 2 %

Are yo ua seller here ?


I would not be
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Natty Gas down another 7% today. New lows with no bottom in sight.
 
Quote from mfbreakout:

I do not know anyone who works at a prop firm, so my questions are based off my experience running a business and general business experience.


Maverick74, your ex boss- the best equity trader quit business because equity industry have completely changed ? Where was his firm research , intellectual capital to help him with strategies to trade in a changing environment?



Mfb, he was bar none one of the best equity traders and tape readers in NY. The guy traded for over 10 years and made well over 10 million dollars. He moved on to greener pastures. People do that in life you know. Why fight the algos. He made his money and now is making even more money in private equity.

Good traders are tough to come by. If a trader at a prop firm has to be a top notch trader plus he has to come up with strategies to keep up with changing market, why even bother working for a firm?

You work for a firm to get lower rates, better software, faster execution, being in an office with other traders, learning from others about what's working in the current environment, access to programmers, leverage, ability to borrow capital at low rates, tax benefits, etc.

Prop firm business model may be different from a typical business model. Why put research and trading burden on on trader?

If a trader works for himself, he does everything. If he is employed by a prop firm, he has resources provided for him. It's very simple economics.

Asking a trader to be a both a trader and an expert on running models to come up strategies/ an edge is like asking TOM BRADY to come up with game tactical and strategic game plan for each team and subsequently each player New England Patriots are playing.

That's not true. You are an independent business owner. If I own my own restaurant, the burden is on me to make it work. Study my competition, hire staff, manage employees, do market research, etc. My competition is not going to do that for me nor is the bank that loans me the money to start the business.

A good firm should be able to have a separate research department to feed traders ideas?

Again, that is not how prop trading works. If you are "employed" by a firm, yes, you will have access to resources which is not "research" per se but quantitative strategies.

This model seems to be more effective then letting a star equity trader quit because markets have changed?

Star equity traders quit all the time. Most of the guys I worked with in NY made millions and now own property and several other businesses. One of my buddies went into to film. Another bought management property, another went to work for an investment bank, a few others started hedge funds.

You can tell I am confused (lol).
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