The day before Larry Connors provided subscribers to his Daily Battle Plan with the trading suggestion that turned out to be a 4% winner at the end of last week, the founder and CEO of TradingMarkets wrote:
“I don’t like to make long term predictions. I simply trade price and price right now is to the downside …”
“We’ll trade it accordingly.”
The next day Larry was putting his model portfolio where his mouth was: alerting Battle Plan subscribers to a potential short term trading opportunity in a very overbought exchange-traded fund.
The fund was one of the more popular and widely-traded country funds, the ^EWZ^. The ETF is one that Larry has traded before in the Battle Plan. And not just as an ETF bought on pullback during a bull market, but on the short side, as well. In fact, Larry’s Daily Battle Plan was 4-1 since October 2008 when it came to selling EWZ short, with an average gain of more than 6%.
The day after the Battle Plan model portfolio sold short its first unit of EWZ, the ETF opened higher, but reversed to close significantly lower. A second day saw sellers continue to dominate the market, sending EWZ still lower. And it was on the close of that second day – or on the open of the third for many Battle Plan traders – that gains were locked in and profits taken in another successful high probability trade in Larry Connors’ Daily Battle Plan.
The EWZ short trade brings the win rate of the Battle Plan to 82% since inception in October 2008, with 55 winning trades out of 67 in total. This performance includes trades to both the short side and the long side, meaning that traders are able to take advantage of the biggest quantified edges in the market, wherever they occurred.
Larry Connors’ Daily Battle Plan is a resource for short term traders, especially traders looking for opportunities to trade short term, mean reversion based strategies in exchange-traded funds. With the quantitative, statistical backing of thousands of simulated trades behind every tactic and strategy, trading with Larry and the Battle Plan is a professional, data-driven approach to short term trading that works.
If recent volatility has you looking for a reliable guide to stay on the right side of the market with every trade, then why not give Larry Connors’ Daily Battle Plan a try? With a free, one-week trial, you can get a behind-the-scenes look at how the Battle Plan is delivered every morning before the market opens and review every single trade, every single market commentary since the Battle Plan was launched in October 2008.
To learn more about Larry Connors’ Daily Battle Plan – and to start your free, one-week trial – click here.
David Penn is Editor in Chief at TradingMarkets.com.