Backtesting ACD method described in Logical trader by Mark Fisher
  1. Data for testing
  2. Point A
  3. Failed Point A
  4. Point C
  5. Pivot range
  6. W-pivot range -new
  7. Points A and C through the pivot
  8. Closing method -new
  9. Dynamics of Points A and C
  10. Significant time frames
  11. Entry and exit



When I read The Logical Trader, written by Mark Fisher, I thought that the ACD system was worth paying attention to, and decided to backtest it. This section presents the test results and my own research related to the ACD methodology. It is assumed that you have read The Logical Trader or at least its first three chapters or a summary of them in the ACD basics menu, otherwise it will be impossible to understand what is at stake. You can read the first chapter of the book and buy the book at .

The author of The Logical Trader noted that he is not going to share how ACD values are determined (see page 14). I will describe in detail how they can be determined, and try to answer the following questions:

I developed several computer programs and backtested various stocks and futures to answer these and other questions. Since I live and trade in Russia, I used most liquid and volatile Russian stocks and futures. Another reason to use only Russian securities for backtesting is that I have a rather long history of 1 minute bars for them - about 10 years, starting in January 2009. The test results are described in the following chapters and presented in the Appendix.

Now I will briefly describe what each chapter contains.

I checked the most complex programs manually for a month period, to be sure that they work correctly. I checked the time and price of entry and exit from trades, compared them with historical data and concluded whether there were openings and closures at the right moments.