The ACD Method

Discussion in 'Technical Analysis' started by sbrowne126, Jul 16, 2009.

  1. Thanks Mav, this is great. Yeah, I reckon I can squeeze 6 bucks a month, I pay that for CyberGhost to evade the government censors, another 6 won't hurt when it's all for a good cause. :)

    Your suggestion is spot on, as an adult learning by doing works best for me. I could soak everything up like a sponge when I was a kid, alas those days are long gone.
     
    #13351     May 28, 2017
  2. I picked Python because my short research told me it is close to R but perhaps a little easier to learn for someone who has no programming knowledge. Plus it has applications beyond basic data as I mentioned in my long reply to eurusdzn.
     
    #13352     May 28, 2017
  3. jj90

    jj90

    @justrading If you want simple data manipulation and nothing more, R might be a better way to go. I went with Python because it was a full GPL so I was future proofing but if you just want to run numbers easily(there are many libraries for this) have a look at R.
     
    #13353     May 28, 2017
  4. Thanks, will check it out.
     
    #13354     May 28, 2017
  5. copyplus

    copyplus

    Mav or anyone else, can you give me some advice or throw me a bone when it comes to number line derivatives? I read so much about people having success with them, and Mav saying a while back that he trades off derivatives only without caring about the raw scores... so I am puzzled as to why I can't find anything useful in this area. I've tried so many ideas on rate of change or momentum type formulas over multiple lookback periods but keep coming up empty.

    I don't know what I am missing or not understanding. Any advice or examples?
     
    #13355     May 28, 2017
  6. I posted this a while back, I still hold that view.

    https://www.elitetrader.com/et/threads/the-acd-method.170318/page-1299#post-4427159

    Truth be told I only get excited with raw scores nowadays when the 5D NL confirms, because when nothing else is showing, that is often the sign of a nice move. Otherwise the derivatives flag the moves.

    Only other advice I can offer is don't be late to the party. If you've missed it, don't chase it. That first rate of change is where you start to look for your entry.
     
    #13356     May 28, 2017
  7. copyplus

    copyplus

    Thanks for the reply.

    I have looked at the 5 day change but it seems to move around too much. I can't find a signal in there. The 5 day has a mean-reverting quality to it, so if it's been strong then it's probably due to quiet down. A +10 can quickly revert back to a 0 just from normal mean reversion and not imply any weakness. A +4 score can become a -6 on a pullback and then bounce right back. It seems like a lot of noise to me.

    Interested in what others think...
     
    #13357     May 28, 2017
  8. sss12

    sss12

    @Maverick74 or anyone else. I'm trying to incorporate some of the principles of the ACD method to my swing trading (or visa versa). I use ATM options with 7-18 DTE on only those ETF's with the most liquid options that are showing some trend and/or vol.

    I started looking at the high low range of the PAST 5 days as my OR and setting my A levels with approx +\- 25% of ATR from there. OR on current day just too tight. Any thoughts or comments ? thanks
     
    #13358     May 29, 2017
  9. Sounds kind of like a weekly level. Why not just use that? I think its great to try out new ideas like that though.
     
    #13359     May 29, 2017
  10. Also, I personally only use daily levels to generate NL scores. I have one daytrade method that trades off daily levels in forex I am autotrading right now but I suspect it will only be useful as a means to get a better than random entry when I want to open a longer term position.

    An approach you might wish to consider is to watch a 5 day NL and close positions early if it looks like they might be shifting against you.
     
    #13360     May 29, 2017