The ACD Method

Quote from Maverick74:

Yes, for awhile I use to use OTM calendar spreads for directional trades but the funny thing was, my calls were so good that the calendars often suffered from stocks that were TOO strong. LOL. I got annoyed at closing out positions for flat where the the stock rallied 10 to 20%. I only do flys on an indices and that's just for hedges. I always considered downside flys really cheap hedges. At the end of the day, regarding most products, ACD was so effective, that the least risky thing to do was to take all the directional risk. There is the old saying, don't cut off your nose to spite your face.
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What is your win rate like using this method?
 
Quote from justrading:

I recently had that experience with a calendar. Wanted to buy the vanilla option, didn't get a fill at mid so I put on the calendar. Blew through the strike, I made >20%, but it would have been much more if I had just paid the Ask.

Re the hedging, is there any reason why you don't just use VIX to hedge? Cost:Benefit?
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VIX is a very expensive hedge. Downside flys are VERY cheap and I feel provide a much better payoff.
 
Simple question. When playing a bounce of an A level maverick, you seem to mention the target being the opposite A level. Is that your default profit area, or do sometimes use the remainder of the Average Daily ( Weekly/Monthly/Quarterly) Range based on the low of the initial failure. I assume that you are using price action around your target levels, or am i wrong and these targets are just taken using a set and forget limit order?
 
Quote from RunItOnce:

Simple question. When playing a bounce of an A level maverick, you seem to mention the target being the opposite A level. Is that your default profit area, or do sometimes use the remainder of the Average Daily ( Weekly/Monthly/Quarterly) Range based on the low of the initial failure. I assume that you are using price action around your target levels, or am i wrong and these targets are just taken using a set and forget limit order?
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Right, on "failed" entry trades I enter at the failed A and exit at the opposite A level. If it's a longer term trade I'm legging into then I'll usually just take some off there and hold the rest.
 
Quote from Maverick74:

... I could go on about how to use options in FX but I'll save that for another time.
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Hello Maverick74,

many thanks for your sharing. Could you ask shed some light on how to use options in FX and ACD?

TIA

-zhao
 
/GC bouncing off Monthly Adn (late in month, and NL is bad) and bounced off daily ADn (at least on my lines ...)
Mav - using London Open for Gold (treating it basically like a currency from Session open and session length perspective) does that make sense ?
I am using a different OR period for Gold than Currencies ...
 
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