sorilli's ACD system journal

This is my journal covering my trades.
I’ve been trading FX since January 2012.
I have a profitable trading system but am NOT profitable yet. A paradox obviously.
My main problem is focal lack of discipline, meaning impulsive “binge” trades outside my system.
This journal is supposed to keep me on track and avoid stupid actions in the market.
In the next post I’m going to outline my trading system.

So, my system is based on “The Logical Trader” by M. Fisher, i.e. the ACD system.
I only trade GBPUSD and EURUSD, 15min timeframe.
I trade a live account.
Opening ranges (OR) are:
GBPUSD – 8.00-8.30 London time
EURUSD – 7.00-7.30 London time
A and C points are volatility based:
A= 10% of daily ATR10
C= 15% of daily ATR10
An A up point means a long bias and long trades only.
A down point means a short bias and sell trades only. No exceptions.

setups:
A up/ A down
Failed A
Good A through pivot
Failed A against pivot
Point C pivot
Stop loss: according to book i.e. on other side of OR/ pivot range
risk – 0.5 to 2%
exit: usually limit order at 90% ATR from daily extreme, no overnight trades (exit at London close)

no entry if
-RR<1
-around major news time (+/-30min

GBPUSD failed A up with long PIN bar: sold 2 minilots @ 1.5122, SL 1.5150 TP 1.5050
EURUSD pivot slice but no entry (RR=<1)

GBPUSD stopped out: -28pip
A up formed: buy 1 minilot @ 1.5179; SL 1.5114
watch this pair closely because market near limit of daily range

EURUSD: A down through pivot: sell 1.8 minilots @ 1.2910; SL 1.2931, TP 1.2855

EUUSD stopped out, -21 pip
GBPUSD A up, buy 1 minilot @1.5179, SL 1.5114

GBPUSD manual exit around London close +2pip

summary march 21: 3trades/-47pip loss

Ok new day.
EURUSD failed A up and bearish engulfing
10:02: enter sell 4mini lots @ 1.2903 SL 1.2923
TP1 1.2873

stopped out: -20pip

EURUSD: A up
enter buy 1 minilot @ 1.2933, SL 1.2894, TP 2963 (30pip only, countertrend!)

EURUSD: TP reached +30pip

OK lets call it a week. No more trades till monday.
Results first week:
4 trades: 2 wins
total -19 pip

lessons learned: dont trade around red news time (+/-30 min)

ACD method is good. I do not use it but picked one little important piece out of it to fit my method.

How do you know you have profitable system ?

Hi seaman2,
I dont but read the book and listened to his seminar and liked it. The method makes sense and is going to keep me out of stupid trades.
I'm still working on additional filters for entry,

Also, I trade live but only a small account so the risk is very small.

How do you apply the method if I may ask?

I do not use this method. I followed this thread in another forum for a while:

http://www.elitetrader.com/vb/showth...hreadid=170318

and extracted 1 detail and now done with it.

My understading is that it works but requires lots of practice. Dont hold your breath till your 1st M

Thanks for the link to this ET forum. Will check that out.

EURUSD: failed A down with 2 nice PIN bars
enter 2 minilots @1.3001; SL 2975 TP 3040

stopped out -26pip

would you mind explaining the logic of your entry ?

The other ACD tread I followed is for longerterm only. Never thought that one can trade intraday.

If I understand the book correctly, ACD is primarily (but not exlusively) meant for intraday trading of commodities and stocks.

So, I use a 30min opening range for London (GBPUSD) and Frankfurt (EURUSD).
A values are calculated from ATR10 (10%) and C values ATR10 (15%).
An A is established after price stays above/below the OR for at least 15min.
Pivot range is calculated according to the book.

That beeing said, this is still a system in the making. I'm looking for additional factors to filter out loosing trades like this morning.

thanks. Checked again other thread and is not only intraday. Got this from experienced ACD user:

"I've used ACD to trade spreads, options, futures, stocks, daytrading, swing trading and even long term investing"

also

"It's pretty rare for a stock to make a monthly C down in the same week. That would be really bearish. LOL. I void out late cycle trades. Intra-day confirms after about 11:00, weekly confirms after Wednesday, monthly confirms after the 15th and QTR confirms on the 3rd month. "