On Wednesday, Battle Plan traders found themselves locking in gains on a short term trade in the ^IWM^. Two days in the trade, and gains of well over 2%.
This latest successful trade in the Model Portfolio for Larry Connors’ Daily Battle Plan takes the Portfolio to an accuracy rate of 50 wins out of 61 trades since October 2008, or 82%.
This is what high probability trading is all about. Waiting for the right edges to appear, the edges that have historically produced significant market reactions, and then scaling-into the exchange-traded funds (ETFs) that will best allow traders to take maximum advantage of those edges.
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One of the new tools used by Larry Connors in the Model Portfolio of the Daily Battle Plan is the RSI Solver. This tool makes it possible for traders to see exactly what future price will correspond to a particular RSI level. In other words, a high probability trader can now know exactly where an exchange-traded fund like the ^SPY^ or the ^QQQQ^ has to close in order to become officially oversold or overbought.
For many traders, knowing the exact entry and exit prices – rather than simply watching the RSI – is an excellent new option. And in the case of the iShares Russell 2000 Index ETF, this new tool made it possible for traders to take advantage of a very short term oversold opportunity this week.
One additional point. Some traders new to the Battle Plan have wondered why there are not more trades suggested every day. This is an understandable concern in a world overrun with stock and ETF touts. What makes Larry Connors’ Daily Battle Plan unique in this environment is that Larry simply will not offer potential trades unless the historical edges are both present and substantial. Otherwise, Larry urges high probability traders to remain patient on the sidelines until those substantial historical edges appear.
This can be difficult for some traders who want to be trading every day or every other day. But as a number of traders have noted over the years, one of the best ways for traders to minimize risk is to limit their exposure to the market to those instances when the edges are truly on their side. To do otherwise is to play a different game, a gambling game, which is the exact opposite of sound, professional, systematic trading.
One of the best ways to learn to trade like a professional is to trade with a professional. Find out what the high probability strategies of Larry Connors’ Daily Battle Plan can do for you. Click here today to start your free, one-week free trial today.
David Penn is Editor in Chief at TradingMarkets.com.