The ACD Method

Got stopped with a scratch on that..got my shorts scratched. Feel like it will be a shit day lol..just a feeling!

 

Mav, where is your weekly A down on ES ?

 

Here is an update. This spread continues to explode higher.

 

Thats what I needed to be in!

 

THis is what I have been trying to do. In various forms over the last few months. Not so much "1 entity" but stocks that have shown relatively statistically signifigant behavior (mainly volatility based) over the last few months.

Then apply ACD pricniples to it.

Its still a work in progress, but it is promising.

Can you elaborate on what you consider "cycling"?

If it is a specific time of contracting expanding volatility, do you think this pricniple can be applied to intraday time frames?

 

Here it comes, the break lows by a few cents and chop it up!

 

cl 12-19-2011

 

Did you ever figure out how to calculate the ATR of the spreads, that way one can plot levels on them?

 

stopped out 93.91 . long 93.88 out 94.44. waiting for shorts or to go long after C up.

 

Which futures contract would you trade if you want to trade SP500 financial sector ?

Futures on XLF, has a very wide bid-ask, zero volume today. Worthless.

Futures on SP500 fin sector underlying IXM, volume of 7 contracts today. Again useless.

So, how do you express that SPY/XLF pair, other than trading the ETF itself. If you are not trading prop, won't the small leverage available as retail be a problem ?