First, the ACD trading system was a custom trading system created by Mark Fisher. He has been trading on the New York Mercantile Exchange (Nymex) since the age of 12 and has gradually developed his own trading method called ACD. This method is described in his book "The Logical Trader - Applying a Method to the Madness", roughly translated as "The Logical Trader - With a crazy method".

The ACD system is considered a trend trading system and can be applied to any market from commodities, stocks, and currencies if the market has sufficient volatility and liquidity.

The ACD system includes the following core points:
The ACD method uses the range at which the market starts to open.
  • Points A and C represent entry points
  • Points B and D for stops.
  • Symmetrical trading system: What is beneficial has a downside.
Specifically, they will be:

1. Range at market opening:


The opening range is a price range determined based on the opening of a given market - See the yellow lines in Figure 1.

For equities, the opening range is usually the first 20 minutes of the day, for commodities, it is between 5 and 30 minutes. The time period used for the open range depends on each trader's trading time frame. The opening range should be based on the local market where the session begins. The open range is used as a guide to trading throughout the session. We mark the top and bottom of the opening ranges according to the instructions above! Example: In the illustration above, we mark the range area of ​​the first M20 price bar when the market opens, which will be the Opening Range.

According to the random walk theory: "After the price breaks the open range, the market is likely to continue moving in the direction of the breakout."

Note: In currency markets, the opening range should be used as H4, and each opening candle of one session (Asia - Europe - US) will be considered the Opening Range.

2. Point A:

Point A is the price placed above the top of the open range for a number of ticks (or pips) - See the green line in Figure 1. This is a price for us to execute the buying strategy. More specifically, a long position is established when the price breaks above point A and trades around this point A for a period equivalent to half the time frame of the open range.

In the market, point A is usually placed 10 pips above the open range, and a few pips further on high volatility pairs. We will enter a buy order when the price breaks down of point A and trade around this point A within 2 hours of the break. We will close the order when the session is over, regardless of win/loss!

3. Point B:

Point B is the lower edge of the open range area - used as the stop loss for buy orders!

4. Point C:

Similar to point A, but placed below the bottom of the open range area.

In the forex market, point C is usually located 10 pips below the open range, and a few pips further on the high volatility pairs. We will enter short when the price breaks down of point C and trade around this point C within 2 hours of the break. We will close the order when the session is over, regardless of win/loss!

5. Point D:

Similar to point B, which is the lower edge of the opening range are - used as the stop loss for short orders!

Below is a model that describes how we execute the strategy:


6. Take profit:
  • Take profit 1/2 when the RR reaches a 1: 1 ratio
  • Take profit remaining 1/2 when the RR reaches a ratio of 1: 2
  • Or we can use a Pivot Point as a take profit point
Above is the ADC trading system that has helped veteran trader Mark Fisher storm the market for a long time!