Do many of you all use the ACD method intraday, or do you primarily focus on longer term? I'm new to the method, but definitely can see some potential with it.
Intra-day works fine. Just remember one of the core principles which is pick the right markets at the right time. Don't just trade oil every day or spoos because you "like" them.
Never thought I would see the widowmaker trade down to parity going into december. Oh my. The number line is like -1000. LOL.
Got my butt kicked today in the oil markets. Got reminded how much you can lose in just under an hour. Everything that I know about ACD (NLs excluded) pointed me to trade from the short side all week and I was making decent progress. This morning I thought today is the day we break to the downside and make a WADn. With the MADn already in place, it was a pretty good premise and I have done pretty well doing this lately. So while on the intra-day, I had several opportunities to take profits on my shorts, I decided to go for the "big one", sticking with the weekly, monthly and quarterly bias. When the market did what it did between noon and the close, not only did I puke on my short but flipped long and got my butt kicked again. Gave back everything that I so meticulously made during the week and we closed basically unch on the day. I know shit happens but humbled by the market, I felt like sharing today.
Which trade are you referring to? The NG spread is the only one I've regularly heard referred to as the widow maker but didn't know if you meant something you've mentioned prior. Thanks
It's the march/april 2016 natural gas strip. Often a good proxy for the overall product since the spread usually represents the last btu in winter storage.
haven't seen anyone mention it so I will....its a trade that is getting long in the tooth in the short term, but rbob. that is all. rbob crack and rb/ho and flat price. Should have mentioned this the other day, but yall were having WAAAAY too much fun with stocks, and the only stock I have knowledge of is cattle haha
Mav, The US market has been really resilient on these bad news...does this change your thesis at all or at least give it pause?