I understand what you are saying but at it's core, it's a trend following system and most purists of that style will argue that trend followers should never have a profit target. The only way I think one can come out ahead with a trend following approach is to catch huge winners which are usually very rare. But if you cut those winners short, you may not have enough edge to be net profitable. I'm just providing a counter argument. There have been countless book and studies done on this and they all seem to come to the same conclusion.
There has to be some sort of profit target. If your system loses 10 ticks 90% of the time, but earns 100 ticks 10% of the time, then after 100 trades you ought to be up around 100 ticks. Where you might really earn the big bucks, then, is to "let your profits run" after this initial 100 tick threshold is met. god this trading stuff is so easy!
On page 194 of MF book, there is interview of RN- one of the largest crude oil futures trader at the time of book writing and still one of the largest crude oil futures trader. He trades thousands of contracts every day and is a very active trader and scalper. Apparently, he is not looking for 100 ticks moves in one trade in most of his trades. Just curious as to how many traders in this forum trade with similar kind of trading style. Not necessarily in terms of size like trading 1000's of contracts every day but similar style in terms of number of trades, profit targets per trade etc..
Have you tried calling www.mbfcc.com and asked for performance reports of mark fisher money management firm ? or one can also open an account with MF brokerage firm , become a client and they will be happy to answer ones questions related to performance etc..
Some try reinventing the wheel because so many people get system and method confused. It is probably the single biggest problem I have seen at ET over the years. System= your way of generating trading signals. Method=the way you deploy your system. FSH says over and over again this is a method for traders to improve their systems. It just flies over the head of so many folks.
I will call sometime, and ask. Yes can open account at any FCM, nothing new there ! its just a money thing, feeds etc whats your point ? (I bet they cant point to "performance" Fisher has a pool now that he operates, maybe that, however its not strict ACD im sure,
It seems this means to be profitable with this style you need to be looking for potential multi day trends (using the number line?) and holding days to weeks to book a big win. For strictly daytrading especially equities it seems you would be best off looking to take smaller profits off failed A ups and downs. At least that is my impression from looking over lots of charts.
Not at all. Look, I think it would help here to differentiate between stocks and futures. Futures have lots of intra-day movements and follow through. Stocks are tougher since they don't trade 24 hours like most futures do, stocks gap and move hard on the open then in many cases spend all day in a trading range. The entire Logical Trader book was dedicated to day trading, not longer term trading. I think MFbreakout has done a great job on this thread showing how he uses it to trade CL which has lots of follow through. And I've said this time and time again, you need to know the product you are trading. GE stock does not trade the same way as CL. And CL does not trade the same as ZB. You have to treat these products differently. With stocks, you need to be very careful with stock selection. You can't just trade AAPL every day. You have to watch the news flow, earnings, volume, other things. Stocks are not easy to trade. I've said this for years on this forum. Part of that is because there are so many of them and it takes one a lot of experience to select the right stocks to daytrade. There is plenty of follow through in stocks, but you have to be in the right ones. I know I'm stating the obvious when I say that, but it really is as simple as that. As far as trading failed A ups and A downs, again, I've said this before it comes down to your style. Is that the kind of trader you are? Because if it's not, I assure you ACD will not make you profitable trading that way. You have to trade your personalty. If you like to follow trends, you will find fading moves very hard. If you like to fade, you will find staying in a trend very hard. Once again, ACD is a methodology, not a system. So whatever you are doing now without ACD, just lay ACD on top of that. If you trade CL before, then trade it now. If you trade breakouts now, then lay ACD on top of that to trade breakouts better. Don't fight what comes natural to you because you "think" ACD will work better.
pwr, no one owes anyone any performance reports. If you choose to use the method to enhance your trading, do so. If not, do not. Personally, ACD has become a perfect filter for me to manage trades. Speaking of the AUM, price has broken below my opening range with an A down, but the pivot range is right below. The optimal trade for KISS is to wait for a C up which is with the pivot, or wait for price to close below the pivot range and let price action take me in for a further move to the downside. Easy stuff.