One of the main takeaways from our recent Quantamentals course is that combining different edges together leads to greatly enhanced trading and investment results. In our course, we specifically combined historical edges from Fundamental, Technical and Quantitative analysis to build high performing portfolios. This stacking of edges ultimately led to portfolios with double-digit returns and… [Read More]
Analytics
Connors Research Traders Journal (Volume 3): Stops (Still) Hurt
In my book Short-Term Trading Strategies That Work, we created a small firestorm with a chapter that was titled “Stops Hurt”. The chapter showed statistically that stops on pullbacks hurt performance (since publishing this test in the book many others have replicated it). Even stops placed 50% away (which few would even consider a stop)… [Read More]
Back Tested RSI25 Strategy Shows Two Buys for Monday
RSI25 is one of the successful strategies developed more than five years ago and detailed in High Probability ETF Trading: 7 Professional Strategies to Improve Your ETF Trading. In back-testing on 20 of the most liquid ETFs for as long as the ETF had been traded, a period of up to 15 years, 77% of… [Read More]
Two Leveraged ETFs with High Probability Buy Setups
In a volatile market like we’ve experienced recently, short-term traders can enjoy large gains in just days. Leveraged ETFs can be used to increase the potential trading gains. For example, SPDR S&P 500 ETF (NYSE: SPY) gained 4.3% in the final three days of last week. ProShares Ultra S&P500 (NYSE: SSO) is designed to move… [Read More]
Moving Averages Highlight Three Potential Buys for Monday
Moving averages (MAs) are usually thought of as a trend-following tool. That traditional thinking fails to take advantage of the moving average’s ability to pinpoint oversold extremes in price. That characteristic of MAs is the concept behind quantified research that was detailed in Trading Stocks & Options with Moving Averages; A Quantified Approach, a guidebook that… [Read More]
Two International ETFs for Monday Morning
In High Probability Trading for International ETFs, for the first time, our research has shown that mean reversion is applicable in the prediction of short-term moves in global stock markets. The strategies in this guidebook do not rely on momentum or other widely followed indicators to identify buy candidates. Some variations of these strategies have… [Read More]
Fourteen ConnorsRSI Pullback Strategy Buy Candidates for Monday
Heading into Monday’s open, 14 stocks are potential buys under the fully disclosed rules of the ConnorsRSI Pullback Strategy. More than twenty variations of this strategy have win rates greater than 75%. Average gains per trade for the top twenty variations range from 6.7% to 13%. These variations are fully disclosed in the recently updated… [Read More]
Stocks Are Overbought but When is the Right Time to Short?
After Friday’s gain, SPDR S&P 500 (NYSE: SPY) has closed above its 5-day moving average (MA) for 26 consecutive days. The chart below, from the PowerRatings web site, shows SPY with its 5-day MA. For most of the past five weeks, SPY has been overbought with a PowerRatings of 3. PowerRatings are based on the… [Read More]
Two Leveraged ETFs with High Probability Buy Setups
Leveraged ETFs can make large price moves in a short amount of time an attribute that makes them appealing to short-term trades. With the right strategies, leveraged ETFs can be profitable for short-term traders. In the guidebook Trading Leveraged ETFs with ConnorsRSI we provide details on two dozen strategy variations with a win rate above… [Read More]
One ETF For Monday with 6 of 7 High Probability Buy Signals in Place
Through back testing and experience, we have demonstrated that buying dips is one of the most effective trading strategies for short term trading. This idea can be quantified in a number of ways. Specific rules with test results are presented in the book High Probability ETF Trading: 7 Professional Strategies to Improve Your ETF Trading…. [Read More]