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The ACD Method
- Thread starter sbrowne126
- Start date
Quote from Maverick74:
Here is the weekly A down in XOP. It rallied back off the open to re-test it and failed which also was a failed intra-day A up. So this trade could have gotten you short at the highs of the day. The break and the re-test of an A level is a really common trade and tends to work really well.
you have a failed intraday aup in XOP? hmm mine didnt even come out of the OR...
Quote from Shanb:
Sure that was a legit entry. I The XOP trade netted a solid 60bps or so...not bad.
Interesting the weakness in energy today given how well bid they have been. Didn't see todays action coming there.
160 bps! That's from the A down to the monthly A down at noon. Had you got short on the re-test of the weekly A down 260 bps!!!
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Quote from DT3:
Nice trade I guess I don't really understand spreading. What's the benefit of spreading when you could have just shorted XPO outright?
DT3, just trying to walk you through a trade here and how you can use all the levels to set your entries and targets. ACD is very dynamic. The spread trade was also good but it confuses a lot of guys who are trying to nail down the ACD process. Use all your levels. They all work!
Quote from Shanb:
The entry was based off of the qqq's. Failed weekly in the qqq's, relative strength, and a confirmed aup off the weekly. So in this case the proper comparison would be against the qqq's at 8:50.
I posted the chart in my prior post, the spread was by far smoother
Yes but what made you select XOP for the other side? Why not just go long the Qs?
Quote from DT3:
Yes but what made you select XOP for the other side? Why not just go long the Qs?
Well, everyone trades differently. I'm more comfortable putting on a spread as I have worked with them for some time and I understand the relationships pretty well.
This is nothing more than a bet on the divergence of the spread...you are looking to buy something strong and sell something weak. After looking at these relationships for sometime you can kinda see what to pair with what.
Like John said, relative value bets are bit of a different game than directional. You should know ACD inside and out before you start to work with spreads.
Quote from DT3:
Yes but what made you select XOP for the other side? Why not just go long the Qs?
Here is a good article on spread trading:
http://dynamichedge.com/2010/06/29/what-is-spread-trading/
I want to thank you guys for all the postings and willingness to share information and experience with ACD. I first started to work with it about 8 months ago. I found this site with a google search and have read the whole thread. Although Iâve been a market participant for many years my trading had to be managed around work. Results were pretty spotty, but good enough to stay with it. What I lacked was a structured way to frame the market; ACD has given me that and my results are now much more consistent. As an engineer working with critical processes, being wrong is really not an option. As such, Iâve struggled with the psychology of losing trades. To manage that Iâve had to redefine success to the proper execution of my trading rules and NOT directly about making a profitable trade. Iâve learned that proper execution within the rule set leads to profits. This seems like a small thing, but itâs made a big difference in my ability to accept the win loss ratio. Anyway, we donât often take time to say thank you, so I wanted you to know that your posts have been a gift to at least some of us out here! With time and experience I hope to start contributing more myself.
Quote from sarue:
I want to thank you guys for all the postings and willingness to share information and experience with ACD. I first started to work with it about 8 months ago. I found this site with a google search and have read the whole thread. Although Iâve been a market participant for many years my trading had to be managed around work. Results were pretty spotty, but good enough to stay with it. What I lacked was a structured way to frame the market; ACD has given me that and my results are now much more consistent. As an engineer working with critical processes, being wrong is really not an option. As such, Iâve struggled with the psychology of losing trades. To manage that Iâve had to redefine success to the proper execution of my trading rules and NOT directly about making a profitable trade. Iâve learned that proper execution within the rule set leads to profits. This seems like a small thing, but itâs made a big difference in my ability to accept the win loss ratio. Anyway, we donât often take time to say thank you, so I wanted you to know that your posts have been a gift to at least some of us out here! With time and experience I hope to start contributing more myself.
Nice bounce in those semis off your quarter a down! For some reason my data doesnt go back far enough to get quarterly levels for SMH. Great trade tho, gotta say didn't expect that move!