While there has been a recent proliferation of low volatility products on the market, few of them offer any real protection from a bear market. One only has to look at the August 2013 performance of SPLV, the largest low volatility ETF to see the impact of what happens to even low volatility stocks when markets decline.
To address this need for protection, we’ve developed a low volatility portfolio strategy designed to selectively look at stocks at the most opportune times, and keep you in cash when there aren’t any potentially profitable setups present.
In doing so, we’ve found a new way to trade with the ConnorsRSI indicator to lower the overall volatility of one’s portfolio.
Please click here to attend a recorded webinar with Larry Connors if you’d like to learn more about why this balanced approach to trading stocks is a superior method for achieving low volatility.
Through the historical testing conducted by the Connors Research team, we’ve statistically proven that stocks displaying low ConnorsRSI readings have outperformed the wide majority of other stocks over the next 3-5 trading days. Expanding on this core insight, we discovered that stocks showing consecutive days of extremely low ConnorsRSI levels have performed even greater in the short-term. Taking these stocks and grouping them into portfolios produced consistent, low volatility returns.
By combining these historically high probability trades with very high cash levels, we saw test results like these below:
Top 10 Historical Back-Tested Portfolio Results Ranked by Average Annual Return (Jan 1, 2006 – July 31, 2013)
The ConnorsRSI Selective Portfolio Strategy will enable you to find hidden opportunities in the market by helping you break free of the industry-wide inclination towards high exposure.
Click here to Join Larry Connors for Swing Trading College Live Fall 2013 to get access to ConnorsRSI Selective Portfolio Strategy including rules and 3 months of signals.
TradingMarkets.com supplies active traders with the education and tools they need to make trades based on data - not emotion and delivers content, tools, data, and trading systems aligned with the proprietary trading methodologies developed by Connors Research.
