For the past few years, there’s been on-going interest in whether Social Media, especially Twitter, can be used to predict short-term movement in stocks. At least one fund was created that I know of (after a good first month they got very quiet), along with a number of data and software services which now provide… [Read More]
Today, we’ll look at whether or not mean reversion trading still works (it does). You’ll learn The RSI 25 Strategy which has correctly predicted the short-term direction of the S&P 500 ETF (SPY) over 91% of the time since 1993. You’ll also gain further insights which you can apply to your personal trading. For much… [Read More]
In 2004, when Larry Connors & Connors Research published How Markets Really Work, they started with the proposition to always look at the data in order to develop unique insights into price behavior rather than blindly follow widely accepted “truths”. It is with that same discipline that they undertook their most recent investigation into the… [Read More]
Securities that rise or fall multiple days in a row tend to reverse a high percentage of the time (oftentimes over 80% of the time).
Join Senior Researcher Matt Radtke for our latest article series designed to teach you a systematic, step-by-step process for building your own quantified and validated trading strategies.
Earnings season always gets lots of hype, and this one has been no different. This QTR was expected to be an easy comparison to Q4 (Recession of 2008), and it is as over 70% of reporting companies have beaten greatly reduced estimates due mostly to cost cutting and layoffs, but that is not the case for top line growth.
With the market overbought, here’s a refresher trading lesson from Larry Connors on how ETFs have historically performed on a short-term, reversion to the mean basis.
Are there situations where applying a stop-loss serves little purpose? This interview with Ernest Chan explores stop-losses, and why they do not work with reversion to the mean strategies.
Forex trader Chris Capre discusses how to trade forex using a much tighter reversion to the mean strategy.
Larry Connors takes a look at what mean reversion trading can do to boost the performance of your short term trading strategies for stocks and ETFs.