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The ACD Method
- Thread starter sbrowne126
- Start date
Much thanks to you, Mav! Awesome post and confirms my "gut" on best markets for ACD. I started out in currencies and after looking at other instruments once getting acclimated to basics of trading, nothing seems to move as "smoothly" as currencies do so I've stuck w/ them. Definitely have new perspectives on how they can be further manipulated to increase odds in my favor.
I will work to be more active on thread. Definitely needs to stay at the top of forum.
I will work to be more active on thread. Definitely needs to stay at the top of forum.
Mav,
A newbie question. I have been looking into currencies for all the reasons you have mentioned above. So far I have only traded them using currency futures at TDAmeritrade .. (long story why ...) either stand alone or as a pair trade (sometimes to hedge market equity positions).
I just started opening an account at OandA and was wondering - what the real difference between a regular broker like Schwab, TDA etc and a currency dealer like OANDA. I read all the disclosures that OANDA makes you sign regardin the dealer being the counter party etc and there being no exchange for the trade.
So I understand - that currency futures - would trade on an exchange subject to regulatory oversight and the brokers are subject to financial oversight/constraints etc and to SIPC insurance.
Forex Dealers are the wild wild west of trading ...
What else is there and why OANDA as opposed to what appears to be a lot of them out there.
Sorry if this is a very basic question.
A newbie question. I have been looking into currencies for all the reasons you have mentioned above. So far I have only traded them using currency futures at TDAmeritrade .. (long story why ...) either stand alone or as a pair trade (sometimes to hedge market equity positions).
I just started opening an account at OandA and was wondering - what the real difference between a regular broker like Schwab, TDA etc and a currency dealer like OANDA. I read all the disclosures that OANDA makes you sign regardin the dealer being the counter party etc and there being no exchange for the trade.
So I understand - that currency futures - would trade on an exchange subject to regulatory oversight and the brokers are subject to financial oversight/constraints etc and to SIPC insurance.
Forex Dealers are the wild wild west of trading ...
What else is there and why OANDA as opposed to what appears to be a lot of them out there.
Sorry if this is a very basic question.
Quote from partha:
Mav,
A newbie question. I have been looking into currencies for all the reasons you have mentioned above. So far I have only traded them using currency futures at TDAmeritrade .. (long story why ...) either stand alone or as a pair trade (sometimes to hedge market equity positions).
I just started opening an account at OandA and was wondering - what the real difference between a regular broker like Schwab, TDA etc and a currency dealer like OANDA. I read all the disclosures that OANDA makes you sign regardin the dealer being the counter party etc and there being no exchange for the trade.
So I understand - that currency futures - would trade on an exchange subject to regulatory oversight and the brokers are subject to financial oversight/constraints etc and to SIPC insurance.
Forex Dealers are the wild wild west of trading ...
What else is there and why OANDA as opposed to what appears to be a lot of them out there.
Sorry if this is a very basic question.
Well, for starters, most brokers actually USE these bucketshops. If you read in their disclosure documents, they don't clear cash FX. They outsource to a 3rd party which is a firm like Oanda or FXCM or Gain, etc. To be fair, I don't think there is much difference between any of them. Oanda is the most capitalized I believe in the cash space (for retail). It's my experience that Oanda has tighter spreads them most and offers the most pairs. Of course the nice thing about using say TDA is, you can use all your charts and scripts in one place if you have them there. I think Oanda is the only broker that pays interest by the second, vs having over night swaps where you actually have to be in the pair at a certain time to get paid interest or to pay. I think that is annoying. Oanda also has some of the better bid/offer spreads on rates. Also, if you go to Oanda's website and check out the Oanda Labs they have some pretty cool features I have not seen at other places.
If you are simply asking about the legitimacy, I think this stuff gets way overblown by traders who quite simply don't make money. In the decade I've been trading FX, I've never had a bad fill or someone hunt my stop. In fact, quite the opposite, I'm amazed at how many times I actually GOT fills on price spikes. This is very important to understand. When you place a buy stop or sell stop limit on futures, there is a good chance you will NOT get a fill in a fast market. I have ALWAYS gotten a fill on cash.
At the end of the day, whether or not you make money is going to depend on you and not your broker. I tend to avoid brokers that make my life complicated by making me jump through hoops for stuff. IB is kind of a pain in the ass in that regard. Oanda is very easy to get money in, get money out, the software is pretty straightforward.
My only gripe with cash FX is really a regulatory one and that is this nanny state that doesn't want us customers to trade cash FX options. Every other western and eastern country for that matter can, but not here. I'm speaking at the retail level obviously. Other then that, if you are more comfortable trading FX futures or even cash FX at IB or TDA then it will make no difference. I think many people don't like the large size of full size futures contracts and the mini's are untradeable. So cash kind of fits that custom model that I think is ideal for newbie traders.
Mav,
Thanks for the reply. I have noticed since you started calling things out - that Forex hit ACD lines much nicer that stocks ever did. Also - none of that Billionaire manipulation going on ...
I use currency futures - because my broker would'nt let me open a forex account - period. In My Living Trust - my broker said - unless it specifically mentions Forex and allows it -I cannot trade it. So I started using futures out of necessity. Of course there is the nice Sec. 1256 advantage to those.
Futures work - but they to be paired quite often and then to match sizes on the pairs, it gets bigger than I want - particularly to trade around in partials.
So I have been looking for a pure currency account - and your posting sort of gave me the impetus to stop just watching and open the account. I now have flexibility on cash vs. futures.
Thanks for the reply. I have noticed since you started calling things out - that Forex hit ACD lines much nicer that stocks ever did. Also - none of that Billionaire manipulation going on ...
I use currency futures - because my broker would'nt let me open a forex account - period. In My Living Trust - my broker said - unless it specifically mentions Forex and allows it -I cannot trade it. So I started using futures out of necessity. Of course there is the nice Sec. 1256 advantage to those.
Futures work - but they to be paired quite often and then to match sizes on the pairs, it gets bigger than I want - particularly to trade around in partials.
So I have been looking for a pure currency account - and your posting sort of gave me the impetus to stop just watching and open the account. I now have flexibility on cash vs. futures.
Quote from Maverick74:
There's a fresh face! Dragged one of the lurkers from the shadows.
Can you clarify what you mean by currency index? Do you mean the US Dollar index?
Long time lurker! Yes I was thinking about this kind of index but I realize that it is not available for all currencies.
GBP/JPY is a roman candle.
Also, looking at adding AUD/NZD to the FX mix.