I have seen the info on his website and I think it's very valuable. You need to understand that Mark is providing data. What you do with that data is your call. There is no holy grail. There are no magical numbers out there that provide the secrets to trading. His website provides a lot of in depth data on all his ACD data numbers. He provides this data on all the commodities and 100's of stocks. It's your job to take that data and use it to make money. The book is useful for understanding the foundation of his strategy. As the saying goes, the devil is in the details. The details as to how you execute the system is your burden. There is no magical system and if such a magical method existed, do you really think it would sell for 69.95 or whatever his book cost? I have always said this as long as I have been on ET, there is no such thing as a good or bad trading strategy, only good or bad traders. A bad trader will always find ways to lose money. A good trader will always find ways to make money. What I like about the ACD system, at least how we use it, is that it does not use magical levels that everyone is watching. It does not use moving averages, fibonacci ratios, oscillators, candlesticks, etc. all that crap. Our system is volatility based and tries to interpret market conditions and probabilities rather then using crap like market is overbought or oversold. Or using fundamentals like the economy sucks, I'm getting short. It doesn't use support or resistance levels, like nobody with a freaking computer can see those magical levels. There is a lot of great info in his Logical Trader book if you stop looking for answers and start looking for information. I think it's one of the better books out there on discipline and market approach. How many guys out there actually eat what they cook? This guy actually talks the talk and backs it up with his own money and his own trading. He actually trades his method. As do we.
Seems like the method outlined in the book relies heavily on opening range high and low levels acting as support and resistance. Are you saying your version of the system doesn't use the opening range?
No, in the book he does not say that. He says that the OR is statistically significant. And he uses the high and low of the OR as his stop!!! They are not used as support or resistance. He uses those levels to determine bias. Our version of ACD does the same thing. It does not use those levels as support or resistance, we create a bias from the OR and use the OR levels for stops.
In one of his recorded seminars he gives out some formula or whatever he says you need that isn't in the book. So, you either need to watch his seminar or get the data from his website. Book is incomplete in and of itself if you want to trade his method.
It is my understanding that he calculates entry price based on the size of the OR. Is there much more to it than that as far as entry is concerned ? Thanks,
No, that is where the A value comes in. The A value is added to the top and bottom of the opening range to determine where the "bias" is. The size of the opening range is immaterial on the bias.
He traded his method on the floor for 20 years. He has taught 100's of members of MBF his method and he currently is blackboxing it. I know one of his programmers and I have talked to Mark in person about it. His proprietary traders at MBF also trade some variation of it.