Connors Research Trading Strategy Series: ETF Scale-In Trading
This New Scale-In Strategy -- Enhanced with ConnorsRSI -- Shows
Winning Trade Rates Over 90%
Professional money managers have used 'scaling-in' to improve gains for years. Now you can
use it to help improve your accuracy as well.
Do You Know How to Scale-In Your Trades?
Successful money managers use a myriad of different strategies -- but most share one important tactic in common.
Once they research an idea and decide to buy, they do not simply go “all-in”. They purchase a just a piece, a small percentage of the total capital intended for this position.
And then they go home and hope for the stock to go lower, so they can buy even more shares at cheaper prices in the future.
This is called "scaling-in" to a position.
The 'Win-Win' from Scaling-In
Here's why 'scaling-in' is often seen as a 'win-win':
- If prices go straight up; you have a profitable position.
- If prices go down, you get the opportunity to add to your position at even better prices. And you can continue to buy as prices go lower until you get your full position.
When prices do rise, and you lock in your gains, the trader who "scales-in" has a lower average purchase price -- and higher percent gain on the position.
Now you can also using "scaling-in" to help achieve higher winning trade rates -- in many cases over 90% -- with this new strategy from Connors Research.
Introducing: ETF SCALE-IN TRADINGThis latest GuideBook, from our popular Connors Research Trading Strategy Series, will teach you the specific professional disciplines you need to "scale-in" correctly.
What you will learn with this strategy are over 80 variations with specific entry/exit rules and scale-in ratios:
- More than 20 variations show a winning trade rate over 92.8% of the time
- 13 variations show an Avg. % P/L (including all winning and losing trades) of over 4.0%
- All are long positions, held for less than 5 days (avg. 2.63 days)
If you rely on data, not opinion, to make your trading decisions, and you want the ability to choose the best variations to trade your strategies, then this guide is for you.
Here are the test results for the top 10 best performing variations of the ETF Scale-In Trading strategy for the past 7 years.
And as you will see from the test results, especially on a percentage correct basis, "scaling-in" is often a better way to trade, especially with ETFs.
Test Results for The ETF Scale-In Strategy
Jan. 2006 - Jan. 2013 (long only, ranked by % Winning Trades)
|Variation||Avg. % Profit/Loss||Avg. Trading Days Held||% Winners|
Here is What a Scale-In Trade Looks Like
Shown below is a chart for the iShares Dow Jones US Home Construction ETF (ITB).
As you can see, our initial entry is on October 8, 2012. Notice that with this particular strategy variation, our entry signal triggers on the first day of a pullback.
Strategy rules signal 3 more scale-in entries on October 9, 11, and 12. There is no scale-in entry on October 10 (two days after the initial entry) because the strategy rules do not trigger a signal.
Our exit occurs on October 15, when the price closes at $19.90. Even though the exit price is lower than our initial entry price of $20.07, it is well above our average entry price of approximately $19.44. Using scaling has saved the day and turned a potentially unprofitable trade into a profitable one, with a net gain of 2.4%!
The ConnorsRSI Difference!What sets the ETF Scale-In Trading Guidebook apart from other "scale-in" formulas is that we use ConnorsRSI to help identify the entry and exit points. ConnorsRSI is the first Quantified Momentum Oscillator -- and it has been adopted by thousands of traders since its release in November 2012.
We feel that it is specifically the use of ConnorsRSI that drives simulated test results with so many variations showing over 90% winning trades in the table above and in the GuideBook.
Here Is What You Will Receive...
In the ETF Scale-In Trading Guidebook you will receive:
- The exact trading rules. This is not a black box – full disclosure of the rules is given to you.
- How to identify the best ETF Scale-in set-ups.
- How to select the best scale-in entries that fit your trading style.
- Where to exactly place your orders each day -- including the "scale-in" ratios for each entry.
- Where and when to exactly exit your orders.
ETF Scale-In Trading strategy is traded on all liquid US ETFs and with options (and it can be done on global markets as well).
For Options Traders, Too
And as a bonus we also added a section on how to trade options with this strategy. This increases the number of opportunities you have to profit from your ETF trading.
Order ETF Scale-In Trading Today
You can be among the first traders to use the ETF Scaling-In strategy.
ETF Scale-In Trading will make you a better, more powerful trader. If you are looking to trade one of the most powerful strategies available to traders today, order ETF Scale-In Trading.
To order your copy of ETF Scale-In Trading, please order here or call toll-free 1-888-484-8220 ext. 3 (outside the US please call 973-494-7311). You will receive your download link for your copy immediately after ordering.
Quantified analyses of thousands of simulated historical ETF trades from
Jan. 1, 2006 through Jan. 31, 2012.
Trading Strategy Series
ETF Scale-In Tradingby Larry Connors, Cesar Alvarez & Matt Radtke
A practical guidebook with clear instructions how to apply Scaling-In Rules and ConnorsRSI filters that show historical tendencies to improve the winning edges for trading ETFs.
About Connors ResearchFor over 15 years, Larry Connors and now Connors Research has provided the highest- quality, data-driven research on trading for individual investors, hedge funds, proprietary trading firms, and bank trading desks around the world.
The strategies published by Connors Research are:
- Completely Original & Unique to Connors Research
You will not find these strategies published anywhere else.
- Consistent with Strategies Used by Billion-Dollar Hedge Funds
Institutional money managers make decisions based on sophisticated, computer-run analyses of massive amounts of trading data. So do we. So should you.
- Historically Validated Over Many Years and All Types of Markets
We quantify precise patterns to improve your trading decisions. Our proprietary database spans over two decades, with more than 12 million quantified trades.
- Tens of Thousands of Traders Have Relied on Our Research Over The Years
From best-selling books, like "Short Term Trading Strategies That Work", to our PowerRatings subscription service, to institutional software products, Connors Research continues to give professional traders and asset managers the tools to achieve professional-level results.
About the Authors
Chairman & Founder, Connors Research. Larry Connors has over 30 years in the financial markets industry. His opinions have been featured at the Wall Street Journal, Bloomberg, Dow Jones, & many others.
Mr. Connors has been an active trader since 1981. His strategies and research are used by thousands of traders throughout the world.
Director of Research for Connors Research LLC. Previously, Mr. Alvarez was a senior developer of Microsoft Excel. For the past 12 years, Mr. Alvarez has been a professional market researcher.
Mr. Alvarez has been at the forefront of stock market research, having developed a number of trading systems now used by investors and fund managers in the United States and internationally.
Senior Researcher for Connors Research. Mr. Radtke graduated magna cum laude from Michigan State University with a degree in computer science. He has 25 years of software development experience, including work at Hewlett-Packard and Bell Northern Research.
Mr. Radtke has been actively trading stocks, ETFs, and options since 2008. Over the past several years he has become increasingly involved with the Connors Group family of companies, first as a student, then as a member of Chairman’s Club, and finally as a consultant, researcher, and author.
- Introduction to Scaling-In
- Introduction to ConnorsRSI
- ETF Scaling-In Strategy Rules
- Scale-In Ratios
- Test Results
- The Role of Exits
- Trading Options with the ETF Scaling-In Strategy
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