ETF Trading and Connors’ Daily Battle Plan: Locking in Gains in SPY
Larry Connors’ Daily Battle Plan Model Portfolio has now had 71 trades with 57 winners (80.28% correct) since inception in October 2008.
Looking back on the performance of the Model Portfolio, it is interesting to see the different types of market the Battle Plan has traded.
There was a strong bear market for the first six months, a good upward move for the following eight months, and sideways here in 2010.
What’s more, volatility, as measured by the CBOE Volatility Index or VIX, has ranged from more than 60 to the mid-teens.
Yet, by focusing on the liquid, country ETFs on both the long and short side – ETFs like the ^SPY^ and the ^QQQQ^ – you can see the flow of steady winning trades in all market conditions.
Above, the most recent trade in Larry Connors’ Daily Battle Plan. Buying weakness and selling strength is a key, quantified principle in high probability trading.
This is what data-driven – model-driven – high probability trading is all about.
No one can predict future returns, but the past 20 months has certainly been a timeframe which has seen many market conditions. What you see is the same thing we see; having a structured, model-
driven approach to your trading and investing is the best way to grow your wealth.
Click here to try Larry Connors’ Daily Battle Plan free for one week. Find out what high probability trading can do for you.
David Penn is Editor in Chief at TradingMarkets.com.