The Logical Trader: Applying a Method to the Madness

Timeless book by Mark Fisher. Absolute must read to whoever seeks to maximise their chances of success in commodity futures.I've traded commodity futures for over 22 years, still consider 'The Logical Trader' as the bible of trading for commodity futures.Mark, thanks for sharing your methods!

This was an eye opener in order to determine when to enter and exit ACD strategy really works well buti would recommend further to add more charts based to illustrate with examples .This is great book every trader should and must have it ....if they are serious about trading .

bestes Buch zum Thema day trading........Allerdings: nach meiner Einschätzung eher für den Trader mit Vorkenntnissen geeignet......hätte ich das Buch zu Beginne meiner Trading Tätigkeit gelesen, hätte es mir nicht so viel gebracht

95% of the info in this book is useful. Fisher himself recognizes the fact that the more people apply his method, the more potent it becomes - and that is the logical conclusion of a trend-folllowing breakout system. So, for those weary of reading books in that they think any advantage has attenuated at the time of publication, fear no more.I'm a daytrader and here is how I've applied the Fisher method(s) to my trading.1. The Opening Range. This is the only statistically significant data point in the trading day. This is the centerpiece of the Fisher System. I had a programmer automate e-signal for me so that the first 15-minutes are marked by bold yellow lines across the chart. This has made me so much more money, it's hard for even me to believe.2. The Daily Pivot Range. This is the daily area of support and resistance. There are some nuances to it, so I'll leave you to the book for it, but all of it is stuff that can be done in MS Excel, if not in your head. I had a programmer automate e-signal for me so that the daily pivot range is shaded in blue across the chart.3. 30-day rolling pivot score. Fisher believes that there is a statistically significant correlation between what will happen today and what happened 30 trading days ago. An example will show how well this works. Today is March 13, 2006. We had a sharp rally in the DOW on Friday (+104 pts). This is when I would normal fade and get short. However, combining the Fisher Daily Pivot Range and the 30-day Rolling Pivot Score, I came up with a net Bullish bias in all my stocks, for the DOW, and the S&P. I made money today, when I would have otherwise lost trying to get short. This day paid for 100 copies of the book..Incidentally, combining the daily pivot range and the 30-day rolling scoring method has proven successful more than 80% of the time for me.Thanks Mark. This is the only book out there worth reading. Nothing else even comes close.That said, his guidance on stop placement is not ideal for me. So, I'm not a complete toady. I'd rather buy something in the middle of the opening range if I feel it's a long.

ACD Q&ALogical Trader/ACD Daily is an independent content provider not affiliated with MBF Clearing Corp, please see full disclaimersBelow you’ll find descriptions of Logical Trader’s ACD Daily reports; click on the links for sample illustrations of the report. Immediately below are the most frequently asked questions from new ACD subscribers. For even more comprehensive insight to ACD, visit the Glossary section!Commodity Pivot TrackerA trading tool that assists in forecasting an increase in short-term market volatility.Commodity Pivot SheetsIncludes vital information such as high, low, close and pivot ranges.Commodity 'A' and 'C' ValuesLists the 'A' and 'C' values, as well as the length of the opening range for each commodity.Natural Gas And Crude Oil Spread SheetA scorecard for the intraday movement of the first eight spreads.Coffee, Sugar, Cotton and Cocoa Spread SheetsA scorecard for the intraday movement of the first eight spreads.Commodities And Stocks - First Two Weeks Of The YearVery similar to the First Trading Day Of The Month item (see above). This ACD tool uses the high, low, close of the first two weeks of the year as well as the high, low, close of the first two weeks of July to establish pivot trading ranges for both the first and second halves of the year. These two-week pivot ranges provide the trader with early insight into future market direction for both stocks and commodities.Most commonly asked questions:Q. Can the “ACD Method” be applied to stock or commodity xyz?A. As long as there is sufficient liquidity and sufficient volatility “ACD” can be applied to virtually any stock or commodity.Q. How can I get the A-C value for a stock that is not listed in the ACD stock reports?A. A good approximation of the current “a” value for any stock would be to take the 30 day avg. range (h-l) and use 20-25% of this value.Q. What prices are used in calculating the pivot range?A. A pivot range is based upon the high,, low and close of a specific trading period. (for day traders, this would be the previous trading day.)Q. How is the pivot range calculated?A. Calculate the daily pivot range using the following formula:Q. What is the significance of the Number Line Sheet?A. The main purpose of the number line is to identify a potentially developing trend. When the 30 trading day cumulative tally goes from a base of 0 to reach +/- 9 on two consecutive trading days, it becomes significant.Q. Can I create a “pivot moving average” indicator in my charting software?A. Although all charting software packages are different, almost all come with the capability to plot moving averages. The problem arises in that the default in most packages creates moving averages based on “closing” prices.The “pivot moving average” is calculated using the pivot (vs.) the closing price. Therefore, if your charting software allows you to change the price component of the moving average from close to (h+l+c)/ 3 you will be able to plot the pivot moving average indicator.Q. What is a “Pivot on Gap Day” that is referred to on some of the ACD information sheets?A. When the market gaps open, above or below the daily pivot range and never trades into the daily pivot range from that day, a Pivot on Gap Day has been established. That Pivot on Gap Day becomes critical support or resistance for future trading sessions.Q. What is a sushi roll?A. In the ACD system, sushi roll is the name given to a particular early-warning indicator of a change in market direction. The sushi roll utilizes five (5) rolling trading days (or for a shorter-term perspective, five 10-minute bars). The sushi roll compares the latest five increments of time to the prior five increments of time to determine if the market is changing direction.Q. What should I do if “this” or “that” scenario occurs?A. Regardless of the scenario, the answer always remains the same:The ACD methodology should be adapted to suit your own trading styles and parameters. Therefore, it should be incorporated into your trading to help you plan out and execute your trading strategies.For example, where Trader 1 may be trading breakouts, Trader 2 may be better suited fading failed breakouts. Obviously their entry and exits would be quite different. However, neither would be “wrong”.The following 5 ACD rules should greatly improve your trading:1. Plot point A’s and C’s as points of reference.2. Lean against these reference points as you execute your trades.3. Maximize your size when the trading scenario is favorable.At all times, minimize your risk.4. Know where you are getting out if you’re wrong.5. If you can answer 4, you will trade with confidenc