High Probability Trading Report: ETF Trading Software and Data Driven Decision-Making
How do you know which exchange-traded funds (ETFs) to trade every day?
In other words, what factors drive your decision to buy an exchange-traded fund for a short term trade – or to sell an exchange-traded fund short?
Bloomberg news alerts? Japanese Candlesticks? Maybe your favorite trader-blogger?
As the saying goes, there are probably as many trading strategies as there are traders to trade them. But if you are a high probability ETF trader, then the answer to the question of what drives your trading every day is simple: data does.
Data-driven trading, trading that is based on quantified, backtested trading strategies is in many ways the final frontier for individual short term traders. While Wall Street traders and professional money managers have known and benefited from data-driven trading for years, the concept has been relatively slow to sink in among the average, retail trading population.
And whether you trade popular non-leveraged ETFs like the ^IWM^ or leveraged funds like the ^TNA^, adding data-driven trading strategies to your short term trading could be the most important trading decision you make in 2010.
Above is an example of a two-unit scale-in to a very oversold ^UUP^.
The unfortunate part is that it is the average, retail trading population that is most bombarded by the noise in the financial media. As Larry Connors noted in an interview earlier this year, in a world in which one pundit shouting “Buy!” on one side of a commercial break and another pundit shouting “Sell!” on the other, it is easy to understand why so many short term traders struggle to have the sort of trading success they could have if instead of listening to the pundits in the financial media, they were listening to the data.
What is data-driven trading? How can the average short term trader learn to let his or her trading decisions be driven by the data and not the latest news headline?
Below is a peek under the hood of our High Probability ETF Trading Software. High probability entries, high probability scale-ins, and high probability exits … all in one place.
The first rule of data-driven trading is, as Larry Connors puts it, “quantify, quantify, quantify.” While past results are no guarantee of future performance, data-driven traders would not think of putting hard-earned capital to work in a trading strategy that had not been tested against a variety of markets in a number of different conditions. Quantifying trading strategies is not only the best way to gain confidence that a given trading strategy may be successful. Quantifying trading strategies also helps traders better understand the nuances of even their most successful trading strategies, potentially providing avenues for tactical improvements to the strategy such as buying on intraday weakness in the case of stocks, or scaling-in to positions in the case of exchange-traded funds.
High Probability ETF Trading Software is one of a number of ways that Larry Connors and Connors Research are bringing quantified, data-driven decision making to the trading public. From tools like PowerRatings to resources like High Probability ETF Trading Software, the ability for the average short term trader to bring data-driven trading to their own short term trading business.
Above, the ^URE^ rallied after a pullback into oversold territory above the 200-day moving average.
High Probability ETF Trading Software includes all 7 of the high probability ETF trading strategies from the award-winning book by Larry Connors and Cesar Alvarez, High Probability ETF Trading: 7 Professional Strategies to Improve Your ETF Trading. From the “3-Day High/Low Method” to the popular “TPS (Time Price Scale-In) Strategy”, High Probability ETF Trading Software has the high probability entries, the high probability scale-ins and the high probability exits you need to make 2010 your best ETF trading year yet.
So why not give High Probability ETF Trading Software a try? For a free trial to High Probability ETF Trading Software, click here. Find out what buying the selling and selling the buying can do for you.
David Penn is Editor in Chief at TradingMarkets.com.