As you may know, the primary strategy we use to trade ETFs is TPS. TPS stands for Time, Price and Scale-in and is the best performing strategy we’ve created (you can find an introduction to TPS is the book High Probability ETF Trading, now in paperback.)
One of the questions I’m often asked is “Can TPS be applied to stocks?” The answer is yes. In fact, using specific versions of TPS (different than the ones that are used for ETFs) you’ll see thousands of trades in test results going back over a decade being correct over 82% of the time. And you’ll see average gains per trade for 5 day holding periods averaging approximately 5% per trade both on the long side and short side for each trade.
Therefore, if you are thinking of applying TPS to stocks to go along with your ETF trading, it’s a good path to take.
Reminder: This Saturday I’ll be conducting a 6-hour online course on trading TPS on ETFs and there will also be a special section devoted to trading TPS on stocks (this will be the first time we’ve published this research). If you’d like to attend the seminar, please call 213-955-5858 ext 1. The cost of the seminar is $4995 and includes a follow-up class in mid-July to make sure you’ve mastered the trading strategy. If you’d like to attend a free presentation today at 4:30 pm describing the seminar ,you can register for it using the above number or by clicking on this link to the registration page.
This is from Larry Connors Daily Battle Plan which he publishes each morning. If you’d like to take a free trial click here, or call 1-888-484-8220 ext 1 to start your free trial today.
Larry Connors is CEO and Founder of TradingMarkets.com and Connors Research.