Recently, a client was kind enough to tell me about an interview in the latest issue of Stocks and Commodities Magazine (thank you Mike). The interview was done with Ernest Chan who is a quantitative researcher and trader having worked for Morgan Stanley and also Millennium Partners.
I don’t know Ernie personally but I’m familiar with his work and his blog (he was also very kind to write a nice review on Short Term Trading Strategies That Work, now in softcover).
In the interview he did in Stocks and Commodities Magazine he talks a lot about stop-losses, and why they do not work with reversion to the mean strategies. He also discusses scaling into positions, just as we do with our TPS strategy which is taught in High Probability ETF Trading.
I strongly recommend you reading this interview as you will learn from it. Also Ernie’s excellent blog can be found here http://epchan.blogspot.com/
Special Note- High Probability ETF Trading is now available in paperback! You should have your copy within a week. If you haven’t ordered your copy and would like to do so, please click here or call toll free 888-484-8220, ext 1.
Larry Connors is CEO and Founder of TradingMarkets.com and Connors Research.
