Mixing ACD with other stuff is like mixing water and oil. Don't do it. For one main reason. The world of ACD is very small. Very few people are using it. Everyone and their paroled uncle is using everything else. It's pretty widely accepted that information that everyone has and uses is pretty much useless by definition. The goal in trading is to try to find something people don't have. Which is why big physical energy companies for example don't make their data freely available. If you do add anything, make sure no one else has it. For example, say you were an accountant for a big 5. And you had access to thousands of tax returns and you could see how many people were invested in the market at the end of the previous tax year. That is information that most people don't have access to. You could actually make independent unique trading decisions that are meaningful.
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The ACD Method
- Thread starter sbrowne126
- Start date
Mixing ACD with other stuff is like mixing water and oil. Don't do it. For one main reason. The world of ACD is very small. Very few people are using it. Everyone and their paroled uncle is using everything else. It's pretty widely accepted that information that everyone has and uses is pretty much useless by definition. The goal in trading is to try to find something people don't have. Which is why big physical energy companies for example don't make their data freely available. If you do add anything, make sure no one else has it. For example, say you were an accountant for a big 5. And you had access to thousands of tax returns and you could see how many people were invested in the market at the end of the previous tax year. That is information that most people don't have access to. You could actually make independent unique trading decisions that are meaningful.
Mixing ACD with other stuff is like mixing water and oil. Don't do it. For one main reason. The world of ACD is very small. Very few people are using it. Everyone and their paroled uncle is using everything else. It's pretty widely accepted that information that everyone has and uses is pretty much useless by definition. The goal in trading is to try to find something people don't have. Which is why big physical energy companies for example don't make their data freely available. If you do add anything, make sure no one else has it. For example, say you were an accountant for a big 5. And you had access to thousands of tax returns and you could see how many people were invested in the market at the end of the previous tax year. That is information that most people don't have access to. You could actually make independent unique trading decisions that are meaningful.
I would love to trade pure ACD but I can't escape the feeling that there's something missing (an edge?).
I'm afraid I don't have access to any secret information so this option doesn't fit me.
I was thinking along the lines of having some kind of system on top of everything and using ACD to confirm my entries. For example using the auction market theory idea of unfair highs and lows. Let's say we're looking at euro. Over the last few weeks the prices were rejected at 1.0650-1.0685 area at the top and 1.0340-1.0380 area at the bottom. The price currently is near the top area (unfair high). One could anticipate a rejection and a move down to retest the lows (or at least the middle of the range, a.k.a. "the value area"). I would then have a short bias and only take a short trade if an A down is made. I'm also aware that the monthly A up has been made, but I could probably ignore that fact given that my time frame for holding a trade is at most 5 days. (all of this is just an example I came up with by watching the chart and I don't really have a system to determine such pivotal points automatically).
The great bear capitulates. His investor letter is a fascinating look at just how challenging this market is. This is the short fund that posted very good returns over the years in light of a never ending bull market.
http://www.zerohedge.com/news/2017-...the+survival+rate+for+everyone+drops+to+zero)
http://www.zerohedge.com/news/2017-...the+survival+rate+for+everyone+drops+to+zero)
What is interesting is how he and Kyle Bass are playing the same themes for the most part but Bass ended up having a banner year.
The great bear capitulates. His investor letter is a fascinating look at just how challenging this market is. This is the short fund that posted very good returns over the years in light of a never ending bull market.
http://www.zerohedge.com/news/2017-01-15/most-bearish-hedge-fund-capitulates-we-are-beginning-close-parts-our-short-book?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+zerohedge/feed+(zero+hedge+-+on+a+long+enough+timeline,+the+survival+rate+for+everyone+drops+to+zero)
that means it's time to go short then
If you guys want to want an interesting video of Black Wednesday when the UK left the ERM and the pound crashed. It's mind boggling how unsophisticated they were.