The ACD Method

That makes sense. Im no expert, but I assume the risk associated with chasing mean reversion isn't worth the payouts. I'm doing simple directional equity trades for now, but still fascinated with spreads. Just wish I had the brain to profit from them. I love reading up on the stuff though.

 

I have shown this site in the past, good for quick and dirty correlation analysis.

http://www.macroaxis.com/invest/menu/pitchletHome/marketCorrelation

 

here is the table form

 

This guy does intermarket analysis, he can be hard to understand but has a good understanding of intermarket. Do not buy the software from them, give the money to make a wish.


http://www.insidefutures.com/articles/articles.php?author=335

 

Here is a review of what the market did this week.

 

Pretty cool dude. Stuff is fun to read

 

While I'm definitely not the most prolific poster on this thread, I have to say please do not turn this into yet another "here's what I think the market will do if X happens" kind of thread.

The entire point of ACD (and price action trading in general) is to REACT to market action, not predict it. The challenge of it is to figure out what is an "actionable event" in the market. In ACD terminology, an "actionable event" is the reaching of an A or C price level. The "why" of it getting there is irrelevant. Save the "why" for the financial journalist hacks who can't make a living trading the markets, so they write about them.

I also say this as someone who's developed my own price action methodology and can tell you that I became a million times better as a trader when I stopped trying to figure out what the market was going to do ahead of time. Just like everyone else, I was watching the markets (specifically, the ES) this morning, but, because I only trade when extremely precise conditions occur, I didn't make a trade at all today. Which is fine because it just means the market is in a state of "limbo" for the moment and neither a long nor a short position makes logical sense.

 

Thanks. I will try to keep the discussion around ACD only. Wanted to start posting on this thread with some contribution from my side.

To Maverick/king,logic_man and everyone else:

can someone please give me a primer on what ACD is all about, or point to some reading for an introduction, with probably couple of examples. Before I buy and spend time with "The Logical Trader", it will help if I can get some introduction about the method and the general concept behind it. Thanks.

 

A few days ago, Maverick posted a link to "The Logical Trader" online. I think it was the entire book. The thread grows so quickly that it could be 15-20 pages back by now, but it was definitely recent, like within the last 10 days.

My guess is that everyone will have a slightly different take on ACD, but it seems to me that what it's about is finding a statistically-significant set of price behaviors in the market (an A up, for example) and using that as the basis of trade entry, management and exit. On the flip side of that same coin, it's a way of keeping you out of the market when the price behaviors aren't confirming any directional bias. No "A up" or "C down" or whatever, no trade.

 

you could throw this on and learn alot of the basics in 2 days.
kudos to Mav who first posted this.

http://vimeo.com/15967639