There is nothing harder to do as a high probability trader than to buy markets after they have pulled back.
The events of the past week have once again reminded all of us of what it takes to be a high probability trader. From the growing worldwide panic over Greek debt to some combination of human and technological error that produced breath-taking 1,000-point drop in the Dow last Thursday, there was nothing easy about stepping into those radically oversold markets on the buy side.
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However, for those who were able to stick to the discipline as high probability traders, especially high probability ETF traders, congratulations are due. Consider, for example, how our High Probability ETF Trading Software performed in the wake of the historic sell-off last week.
–69 winning trades out of 76 in the Multiple Days Down Strategy on Monday alone.
–26 correct trades out of 29 exits in the PercB strategy just on Tuesday
–And the popular TPS (Time Price Scale-In) Strategy? 35 correct out of 37 exits as of Wednesday’s close.
These were all based on short term trading signals produced by High Probability ETF Trading Software as the ETF markets went from oversold to extremely oversold in the final trading days of last week. While the individual strategies vary in specific entry and exit levels, all 7 of the professional trading strategies included in High Probability ETF Trading Software were accurate at least 78% of the time. More than half of the strategies provided profitable exits 88% of the time or more.
One especially interesting note about this most recent set of High Probability ETF Trading Software exits is that the average gains are significantly higher than they have been historically, with gains of 4%, 6% and nearly 8% appearing in a variety of ETFs as they rallied into strength, triggering Software exit signals.
High Probability ETF Trading Software provides traders with the resources they need to trade exchange-traded funds with the same sort of quantified, backtested, mean reversion-based strategies that professional traders and money managers have successfully used for decades. Quantified trading strategies like those supported by High Probability ETF Trading Software help take both the guesswork and the emotion out of trading. This means traders can focus on the critical issues of execution and money management.
While High Probability ETF Trading Software provides the essential framework for trading ETFs a quantified way, there is room for a great deal of individual trader flexibility and preference. Only want to trade the top 10 highest volume ETFs? The ^QQQQ^ gained well over 5% in strategies like the R3 and Percent B. At the same time, the SPY earned more than 4% by way of high probability approaches like the RSI25.
What about Country ETFs? The ^EWD^ exited up more than 6% on Wednesday after earning buy signals from our High Probability ETF Trading Software. Other country funds making significant short term moves this week after getting buy signals from our Software include ^EZA^ (more than 4%), ^EWY^ (as much as 5%), and ^EWW^ (more than 6%).
Sector Funds? With strategies like the RSI25, sector exchange-traded funds like the ^SMH^ gained more than 6% while traders were able to exit the ^XLF^ after a rally of more than 5%.
Trading isn’t easy. But quantitative, data-driven trading with tools like High Probability ETF Trading Software go a long way toward helping traders block out the noise and news and focus on what really matters. In the end, this approach can be a better trading experience for many traders who find that they now only need a few minutes a day after the close or before the open in order to know if and how they are going to trade for the day.
If you’ve been looking for an opportunity to improve your ETF trading, then consider a free, 7-day trial to High Probability ETF Trading Software. Based on the 7 professional strategies in the book, High Probability ETF Trading by Larry Connors and Cesar Alvarez, High Probability ETF Trading Software provides the kind of high probability entries, high probability scale-ins and high probability exits that can help you make 2010 your best trading year ever.
To launch your free 7-day trial to our High Probability ETF Trading Software today, click here.
David Penn is Editor in Chief at TradingMarkets.com.