Last month our research team came across a short article titled “What Are The Most Popular Technical Indicators Worldwide?” No one on the team was surprised to see that the Relative Strength Index (RSI) was far and away the most-used indicator other than a simple moving average. We’ve been publishing strategies for years that rely… [Read More]
Understanding Stop Orders: Part 2
In our previous article we discussed the four basic types of stop orders: Stop Loss Stop Limit Trailing Stop Loss Trailing Stop Limit In addition to these order types, there are many other “logical stop orders” that you can implement as part of your trading strategy, such as exiting if the stock price falls below… [Read More]
Understanding Stop Orders: Part 1
The ability to place stop orders is an essential function of any trading platform. Before considering whether to use this versatile tool, it’s important to understand how it works. There are actually four major types of stop orders. Each of them can be applied to either long or short positions, but for simplicity, we’ll describe… [Read More]
How to Measure the Individual Trade Quality of Your Strategy
You are probably familiar with the Sharpe Ratio, developed by Nobel laureate William F. Sharpe to measure risk-adjusted performance for a portfolio. Portfolios with higher Sharpe Ratios deliver better risk-adjusted returns, when risk is measured by the volatility of returns from the portfolio over time. When we backtest portfolio strategies, we include the Sharpe Ratio… [Read More]
How to Improve Your Order Efficiency
Most traders have had the frustrating experience of buying a stock and then watching as the price drops over the ensuing minutes or hours. One way to alleviate this problem and increase your execution efficiency is by using TWAP or VWAP orders. Do you want to learn how to “scale-in” your trading positions like the… [Read More]
How to Select an Exit Method
Having a precise, quantified exit method is a vital factor in securing consistent returns. Learn about determining the strictness of your exits and how it applies to both trade duration and overall gains.
How to Limit Your Risk with Iron Butterflies – Part 2
In Part 1 of this series, we showed how you could limit the risk of a short straddle by turning it into an iron butterfly, i.e. buying a put option with a strike below the shared strike of the short options, and buying a call option with a strike above the short options’ strike. But… [Read More]
How to Limit Your Risk with Iron Butterflies – Part 1
Do you know how to limit the risk of a short straddle? Join Senior Researcher Matt Radtke to explore the power of Iron Butterfiles and learn how you can apply them to your options trading.
4 Reasons to Zealously Track Your Trading Activity
Join Senior Research Matt Radtke as he analyzes the vital reasons behind proactively tracking your personal trading history. As in the trading strategies developed by Connors Research, the more you can quantify your results, the better informed you will be.
Trading Option Straddles and Strangles: Part 2
Learn when to use these non-directional option strategies and how you can determine if their likely to be profitable for both long and short positions.
