Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

feb2865

ACD Method

Recommended Posts

Hello everyone

 

I was in the chatroom today (I had a great time by the way) and somebody, I believe was Nasdaq5048 said something about ACD Method of Mark Fisher. I haven't read the book yet but as far as I read and talk to other traders, I see some logic especially on opening range strategy. I am curious.

 

I would like to see some comments on this method, especially what do you determine as an opening range timeframe for whatever market you're trading.

 

Regards

 

Raul

Share this post


Link to post
Share on other sites
Hello everyone

 

I was in the chatroom today (I had a great time by the way) and somebody, I believe was Nasdaq5048 said something about ACD Method of Mark Fisher. I haven't read the book yet but as far as I read and talk to other traders, I see some logic especially on opening range strategy. I am curious.

 

I would like to see some comments on this method, especially what do you determine as an opening range timeframe for whatever market you're trading.

 

Regards

 

Raul

 

I just bought the book today...I would also like to know if anyone has been able to successfully apply the ACD method

Share this post


Link to post
Share on other sites

It depends on the market. It depends on your time horizon. It doesnt really matter what timeframe you use. Fisher likes to use 20 min for stocks, and 5 min for grains and true opening range for energies.

I just view the A as the Initial balance high, and B as the opposite end of the initial balance.

But, one thing is for sure, late day pt C reversal works really well in energies. I am not sure whether it is because 60% of the locals on the NYMEX know to a certain degree about ACD or what. But, it works great.

Share this post


Link to post
Share on other sites

Now, I'm curious to buy the book too. Nas, now you've really opened up a Pandora's box!!! ;)

 

Ok, once I have the book, I hope you'll be around the chat room to answer questions and walk us through it LOL!

Share this post


Link to post
Share on other sites

I read the first chapter and seems interesting. He doesn't say where you should have an entry but I read somewhere that possible entry range is something that they provide in a daily basis depending on the market. I smell some co$t involved.

 

The problem with this type of strategies is that if you have a significant S/R - Pivot line nearby and there's not enough meat for a rally, chances are you get halted on the line.

 

Maybe it will work better on energies and grains, like nasdaq said

 

Maybe will work within a 1 to 1-1/4 point deviation from A/C on ES and 4-5 points on YM but this is just a theory. Again all depends on how far/close the price is from any significant level. Anyway, any deviation from the channel has to be done as the market shifts from one price range to another.

 

To me this is another version of a channel breakout system. But it's a better one because you don't play the breakout as the market pulls away from the channel. Another thing I like is about timing you entries.

 

Raul

Share this post


Link to post
Share on other sites

The more I read and analyze the book I am seeing how at least with emini's, the ACD method may be more effective on a longer-term timeframe i.e 3 to 5 days with a 30min chart. Although this is just a preliminary opinion.

Share this post


Link to post
Share on other sites

Excellent article! Thanks, MrPaul. Mentions forex as good candidates for Fisher system but problem is the dang market is 24hrs, where do you start and end the 15min open range?

Share this post


Link to post
Share on other sites
Excellent article! Thanks, MrPaul. Mentions forex as good candidates for Fisher system but problem is the dang market is 24hrs, where do you start and end the 15min open range?

 

In the book he mentions it as being the instrument's domicile market.

 

From pg. 11

 

"There is one important consideration about the opening range, and that's making sure it's based on the domicile market. What do I mean by that? If your trading natural gas futures, then you know that the domicile market is the New York Mercantile Exchange. That's where the opening bell is established. But if you were trading say, Japanese yen, the the opening of the U.S currency markets wouldn't apply. Rather you would look to the opening of the Japanese markets...."

Share this post


Link to post
Share on other sites

The a-value is 22% of the average of the average true range of the past 10 days with some more weight in the front.

I used to use a 15 min range on the S&P, and sometimes the A Up is where it stall. So, it could be used as a failed A trade.

Also, Fisher says 3.5/5 A's in the S&P doesnt work. Too much back and filling for stock indicies.

But for stuff that trend, and yoyo all over the place, this thing can capture some good move without taking profits too early.

Share this post


Link to post
Share on other sites

You may also want to learn about Toby Crabel's and Larry William's versions of a channel breakout strategy as well and then compare. Although, I can't remember the details, I think I preferred Crabel's method over the other two.

Share this post


Link to post
Share on other sites

hello, dear nasdaq58.

I have 2 questions, please.

1. How many ticks does Mark Fisher use for YM,ES and NQ for establising A levels.

2. What open range does he use for these futures. I use 30 min OR,but I am intraday trader, therefore it could be 15min OR or smaller.

Thank you in advance.

Share this post


Link to post
Share on other sites

Thank you for your reply, dear Nasdaq5048

I also use 22% of ATR, but you can check in Fisher's "Logical trader" p.32.

You will see that 15min Opening Range was 5.5points, but Fisher used 2 points for A.this is not 22% of ATR, it is much smaller.So I see that 22% of ATR is unproper or may be I don't understand something.

I will be happy to get your opinion about this.

thank you in advance.

Share this post


Link to post
Share on other sites

I am just trading FX and Gold - therefore I feel the values are appropirate.

 

My OR duration is 30 min from 08:00 until 08:30 GMT+2.

 

My TS duration is from 08:00 until 18:30 GMT+2.

 

I am trading this list of FX pairs.

Share this post


Link to post
Share on other sites

Not to throw cold water on the discussion here, but I have a friend in Chicago who runs several funds. He works with Fisher on a proprietary approach to the ACD. Mark has stated to him that trying to use ACD from the book alone is futile. The book gives the broad overview, but not enough specifics to trade with. Again, this is according to what Mark has told my friend.

 

Yes, I've seen Fisher's NYMEX presentations, and have read the book. No, I do not trade using this method, and the lack of clear-cut rules for using this is the reason why as I've had the book since shortly after it was published.

 

If yuo'd like, yuo can go to Elitetrader.com (which I try to avoid at all costs), and do a Search under Maverick74 (my friend in Chicago), and read his comments about using ACD.

 

Not trying to stir up any negativity, but there's more to this than is publically known. If any of yuo have had luck using ACD as outlined in the book only, then yuo've done better than almost anyone else, and no, I've not subscribed to Mark's site or service.

Share this post


Link to post
Share on other sites

Thanks MRW.

I tried to say as much in the related thread where several traders were trying to garner Fisher videos.

Basically, in the 'real' ACD, the entry techniques are pretty much as advertised / published (with some undisclosed exceptions for certain conditions). But how the trades are managed once triggered is when the 'real' tricks begin - and that info is generally undisclosed. Adjusting sizing to runs (+ and -) is also another important area where real time particulars are not disclosed.

 

Fisher is no dummy. He knows published authors can raise money easier than can unknowns.

Learning to copy his attitudes is of probably of far greater benefit than learning to copy his methods ...

 

hth all

Edited by zdo
spelling and clarity

Share this post


Link to post
Share on other sites
... But how the trades are managed once triggered is when the 'real' tricks begin - and that info is generally undisclosed. Adjusting sizing to runs (+ and -) is also another important area where real time particulars are not disclosed.

 

I agree. Learning how to add to your winners is a topic that is rarely discussed by ACD Traders and it is a important part of the ACD Methodolgy.

Share this post


Link to post
Share on other sites

for those that are still curious the opening range is a short term average of the range of the first pivot price. not to be confused with pivot points. And while the strategy can be used for longer time frames it was designed for day/swing trading using intraday data.

Share this post


Link to post
Share on other sites

Hey guys,

I've been reading your posts and all are very interesting, however something has been plaguing me when trying to trade ACD with FX and i was wondering if I could grab your guys suggestions

When calculating A, C pivot points etc for the FX markets, do you take the 24 hours into account or just the 'session' that you are trading. For Example, London session is approximately 2:am to 12pm EST so would you arrange to calculate A, C and pivot points based on price occurring ONLY within this range or would you include the whole 24 hours. Whilst only including the session is logical, the problem then becomes that most FX charting software only calculate the ATR (used for A and C points) for the WHOLE 24 hours, thereby 'diluting' the calculations of your various points.

 

ANy suggestions?

Much appreciated

Share this post


Link to post
Share on other sites

mike....

 

i have not been active on here lately for several reasons. but i saw your post pop up and thought i would give you a clue...(currencies are all i trade...not to be confused with invest)

 

the opening range of the base currency is what you use. and that is why you cannot use the defaults of the software you use...so is you trade the noraml US market and trade the EUR/USD it is the open of the EUR in Europe....the fun comes in when you trade the crosses...

 

hey jason.....if you see this you want to give him a pointer....the student becomes the teacher...and there is nothing ne.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • BITCOIN STRENGTHENS CORRELATION WITH STOCK MARKET Over recent days, Bitcoin (BTC) has been forging a strong correlation to the equities market once again and it has been observed that this occurs usually when global uncertainty is rife. Currently, investors are wracked with fears over the dwindling prospects of second domestic stimulus measures in the US, coupled with the weaning possibility of a sharp economic recovery. Also, the upcoming US presidential elections are adding to the growing uncertainty surrounding the markets. These fears will likely remain unsolved in the near-term, making further choppiness in the equities market very possible. That said, Bitcoin will likely get caught up in the mix, giving its correlation to the stock market. Meanwhile, an On-Chain analyst has said that he expects the Bitcoin-Equities correlation to fade in the coming months. He explained that subsequent sharp declines in equities will eventually stop pulling Bitcoin lower as the crypto reaches its lowest technically possible levels. BTCUSD – 4-Hour Chart Key BTC Levels to Watch At press time, Bitcoin trades at $10,511, about 0.8% increase in the day. However, it remains trapped in its weekly consolidation range. Last week, bulls attempted to pull the benchmark cryptocurrency out of its downward spiral and ended up taking the price to highs of $11,200. The rejection from that level was decisive and sharp, causing Bitcoin to fall to the level it currently trades at. Meanwhile, the equities market was able to post a modest recovery today, which, as an extension, has given Bitcoin a reprieve for the near-term. Still, the absence of any significant positive development around the US stimulus program or the pandemic-induced economic crisis may continue to burden the cryptocurrency market from rising in the near-term. Total market capital: $333.6 billion Bitcoin market capital: $194 billion Bitcoin dominance: 58%     Source: https://learn2.trade                   
    • ETHEREUM (ETH) PRICE ANALYSIS: BATTLES THE RESISTANCE AT $390, EYES THE HIGH AT $420 Key Highlights Ethereum has a fresh target price of $420 The coin is still battling the resistance at $390 Ethereum (ETH) Current Statistics The current price: $381.78 Market Capitalization: $43,016,171,550 Trading Volume: $12,067,100,125 Major supply zones: $280, $320, $360 Major demand zones: $160, $140, $100 Ethereum (ETH) Price Analysis September 20, 2020 From the rejection at the $390 resistance, Ether is falling to the previous low at $378. Each time the market falls it will retrace to the low of $378 and $381. ETH will rise again to retest the $390 resistance. The coin is rising and it has reached $381 at the writing. The crypto has resumed an upward move as it found support above $380. On the downside, if price has retraced and broken below $350, the selling pressure would have persisted. ETH/USD – Daily Chart ETH Technical Indicators Reading The price has earlier broken above the resistance line of the ascending channel. This assures that the rise of the coin will continue. Another aspect is that price has remained above the EMAs. This also indicates that the coin is rising. ETH/USD – 4 Hour Chart Conclusion From the price action on the 4-hour chart, Ethereum is likely to rise if the current resistance is breached. On September 17, the coin was in an upward move. It was resisted at $390 but the last retraced candle tested the 61.8% Fibonacci retracement level. This indicates that the market will rise and reach a high of 1.618 Fibonacci extension level or $420 high. Source: https://learn2.trade                   
    • let's wade right on in - 'gun control' is not really about saving lives... just like BLM is not really about saving black lives...   https://www.realclearpolitics.com/articles/2020/09/16/bidens_gun_control_claims_at_odds_with_crime_stats_144221.html
    • cui bono ? https://off-guardian.org/2020/09/17/12-steps-to-create-your-own-pandemic/   I'm still trying to figure out which is ultimately worse - the exploiters who run games like this OR the masses of dummies who fall for it... just sayin'
    • An anarcho-capitalist says “Denationalized money like Bitcoin is an investment in social consciousness.” https://cointelegraph.com/news/debt-without-consent-the-tragedy-of-monopolized-fiat-money
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.