Sure that was a legit entry. I The XOP trade netted a solid 60bps or so...not bad. Interesting the weakness in energy today given how well bid they have been. Didn't see todays action coming there.
160 bps! That's from the A down to the monthly A down at noon. Had you got short on the re-test of the weekly A down 260 bps!!!
DT3, just trying to walk you through a trade here and how you can use all the levels to set your entries and targets. ACD is very dynamic. The spread trade was also good but it confuses a lot of guys who are trying to nail down the ACD process. Use all your levels. They all work!
Well, everyone trades differently. I'm more comfortable putting on a spread as I have worked with them for some time and I understand the relationships pretty well. This is nothing more than a bet on the divergence of the spread...you are looking to buy something strong and sell something weak. After looking at these relationships for sometime you can kinda see what to pair with what. Like John said, relative value bets are bit of a different game than directional. You should know ACD inside and out before you start to work with spreads.
I want to thank you guys for all the postings and willingness to share information and experience with ACD. I first started to work with it about 8 months ago. I found this site with a google search and have read the whole thread. Although Iâve been a market participant for many years my trading had to be managed around work. Results were pretty spotty, but good enough to stay with it. What I lacked was a structured way to frame the market; ACD has given me that and my results are now much more consistent. As an engineer working with critical processes, being wrong is really not an option. As such, Iâve struggled with the psychology of losing trades. To manage that Iâve had to redefine success to the proper execution of my trading rules and NOT directly about making a profitable trade. Iâve learned that proper execution within the rule set leads to profits. This seems like a small thing, but itâs made a big difference in my ability to accept the win loss ratio. Anyway, we donât often take time to say thank you, so I wanted you to know that your posts have been a gift to at least some of us out here! With time and experience I hope to start contributing more myself.
Nice bounce in those semis off your quarter a down! For some reason my data doesnt go back far enough to get quarterly levels for SMH. Great trade tho, gotta say didn't expect that move!