Trading NF with ACD system

dumdum20008

Well-Known Member
#1
Hi,
Im starting this ACD thread on Nifty Future (NF) for the purpose of testing/learning/trading. For the basic info of ACD system please read " The logical Trader...." by Mark Fisher.For setup of ACD on NF some tweak/assumptions are made to adopt the A ( or C) value. However any system can be backtesed, but testing in real on the go is alltogether a joyfull experince.It may fail dumbly but a testing over a month will be done and im expecting a healthy n rich guidence/suggestion/discussion from seniors and members.

Setup:
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Opening Range (OR) time duration for this ACD system on NF is chosen 10-min.Charts are drawn on sharekhans trade tiger terminal.Candle size is chosen as 2.5 min ( just for clear view of completion of 5-min validation) so first 4 candle will make opening range.Deciding the A( or C) value these should be kept in mind:

a) Running daily Average True Rnage ,ATR(10 period) on previous days. This value is "theaoritical possible" range of a day ( high-low). Because of day trade, if 10-min OR consume too much value from daily ATR ( say more than 25-30% of daily ATR) than trade generated may not be so efficient/profitable. After all trade signal will be valid beyound OR+(A or C value) for long and OR-(A or C value) for short.Total OR+-(A or C) value should not run away of 40% of daily ATR and a day should be totally avoided if it runs away 60-70%.

b) "10-min bar ATR(10 bar)" on NF roughly ranges as
10-14 points as normal
16-20 points as extreme.
Given the nature of volatility of NF , whole "10-min bar ATR" value should be chosen as A or C value. So for sake of simplicity A or C values are taken 10 ponits.

Execution:
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Trades will be generated only if validation comes, means if NF trades beyond the (OR+-A) value for 5-min continuously.ACD systems can be traded as normal ( Fig 1) after validation or as failed point A (rubber band trade) (fig 2). In this thread we are focusing mainly normal exacution,but rbber band trade are also possible depending upon situation and feasability.







[ stay in touch, compiling more info in a day or weekend]
 

AW10

Well-Known Member
#3
Dumdum, Thanks a lot for starting interesting thread. I am looking forward for this thread. Just a suggestion - for lazy people like me who have not read the book - logical trader.. do u mind explaining a bit about ACD system.
Maybe u can copy/paste the system details from the softcopy of the book (hope that is not too much of extra work for u).Eitherway , I will be following this thread.

Happy Trading.
 
V

vvvv

Guest
#4
now mark fisher enters nifty.....
have u got his secret values ?????
will be interseting to follow it...........if u have any backtest or live results pl post these too.
 

VJAY

Well-Known Member
#5
Dear dumdum,
Thanks for starting this thread,I followed your thread about ACD but unable to understand it correctly.So hope this thread complete learning of ACD system.

Regards
VJAY
 

amar_gr

Active Member
#6
Thanks to Dumdum for starting this very interesting thread on ACD.
(I wish you could reveal your name, and I could address you correctly)

I have been trading a bit NF using the ACD system and hope to add to my knowledge from this thread.

Regards
Amar
 

amar_gr

Active Member
#7
If you permit, I can post some documented charts from my journal.

I have in my journal quite a few charts from the past 3-4weeks on Nifty Fut.

A lot of them have shown good trading set-ups, (but as you pointed out, the Risk reward has not been favorable due to my incorrect choice of a higher time frame)

I have experimented with 5m time frame 20m & 30m time frame. Started using the 10m OR from today.

My journal has been documented on the basis of 30m OR, if you feel any of these recent charts can can help, I can dig out and post some charts to illustrate some actual trading set-ups that have recently occurred (and failed as well) especially the Pivot Range concept alongwith A-Up/A-Dn levels.

The past couple of days have also seen the once in blue moon setups of A-Dn & C-Up on a single day, but surprisingly this highly profitable setup has failed twice and resulted in losses. (Again this maybe due to my incorrect choice of time-frame, I am not sure on this)

Regards
Amar
 

amar_gr

Active Member
#8
now mark fisher enters nifty.....
have u got his secret values ?????
will be interseting to follow it...........if u have any backtest or live results pl post these too.

Hi there,

You seem to be aware of Mark Fishers ACD Method.
Any experiences you can share ?

Amar
 

AW10

Well-Known Member
#9
If you permit, I can post some documented charts from my journal.

I have in my journal quite a few charts from the past 3-4weeks on Nifty Fut.

A lot of them have shown good trading set-ups, (but as you pointed out, the Risk reward has not been favorable due to my incorrect choice of a higher time frame)

I have experimented with 5m time frame 20m & 30m time frame. Started using the 10m OR from today.

My journal has been documented on the basis of 30m OR, if you feel any of these recent charts can can help, I can dig out and post some charts to illustrate some actual trading set-ups that have recently occurred (and failed as well) especially the Pivot Range concept alongwith A-Up/A-Dn levels.

The past couple of days have also seen the once in blue moon setups of A-Dn & C-Up on a single day, but surprisingly this highly profitable setup has failed twice and resulted in losses. (Again this maybe due to my incorrect choice of time-frame, I am not sure on this)

Regards
Amar
I understand, ACD system is trend following system.. (correct me, I might be wrong due to my limited knowledge about it).. and in current sideway market, trend following systems are bound to show poor results.. That doesn't mean the system is bad.. It might be just that the current mkt coniditions are not fit for this system.

Once we have some data then we can have healthy (hope so) discussion on it.

Happy Trading.
 

amar_gr

Active Member
#10
I understand, ACD system is trend following system.. (correct me, I might be wrong due to my limited knowledge about it).. and in current sideway market, trend following systems are bound to show poor results.. That doesn't mean the system is bad.. It might be just that the current mkt coniditions are not fit for this system.

Once we have some data then we can have healthy (hope so) discussion on it.

Happy Trading.
Not Really, It is a rather flexible system, meaning you can adapt it to your style of trading. Once the basic concepts are clear, the method can virtually be applied to any time-frame suitable to you.

The basic requirements to trade it successfully are volatility and ample liquidity.
 

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