High Probability ETF Trading: 7 Professional Strategies To Improve Your ETF Trading

by Cesar Alvarez, Connors Research LLC, Larry Connors, et al.

Book Overview

The First Quantified Book on Trading ETF: TradingMarkets is excited to announce the launch of High Probability ETF Trading . Written by Larry Connors and Cesar Alvarez, this book is designed to give you the trading edge you need for success. The strategies have been tested back as far as 1993, all of which have performed with a high accuracy, some up to 90%. While there are many ways to trade ETFs, applying these strategies can increase your trading...

• Format: Hardcover
• Language: English
• ISBN: 0615297412
• ISBN13: 9780615297415
• Release Date: May 2009
• Publisher: TradingMarkets
• Length: 122 Pages
• Weight: 1.35 lbs.
• Dimensions: 0.8" x 8.5" x 11.0"
• Age Range: 18 years and up

Customer Reviews

Solid Strategies with no hype

Larry Connors' latest published work "High Probability ETF Trading" (along with Cesar Alvarez the Connors Research Group) is some of the best trading information and strategies available for trading the ETFs. Let me give you a little background on my experience and why I feel I am that I can make such a strong statement. I have been involved in trading and trading education for about 13 years. I have had the time and opportunity to review and utilize information from many different sources over these past 13 years. Not all of the information that I have received had been subjected to rigorous study and sound scientific methods. I would learn this the hard way as I put money to work using this information. I would learn terms like "over optimized", "varied inputs", "wrong time frame" as strategies that had looked fabulous on paper turned out to be the road to financial loss with losing streak after losing streak. I discovered that the art of lying with statistics had been honed to a fine art by many trading educators and system and strategy developers. I also discovered that Larry Connors was not a part of this group. Larry's work has always incorporated the highest standards for back testing and strategy development. I have used the precursors to these latest strategies since 2004. I have had consistent profitability in my stock index futures trading using these older strategies. The latest publication has improved and enhanced these earlier strategies. I look forward to adding them to my trading plan. The strategies published in this book should work very well the increasing number of double and triple ETFs. The underlying diversification of the new ETFs with their resistance to event risk is well suited to the "reversion to the mean" strategies that are published in the book. I can only thank Larry for continuing to provide solid strategy development and making them available to the pubic.

Finally...a structured way to trade ETFs!

When massive numbers of traders and investors fled the markets as it crashed in 2008, there were plenty of opportunities for the methodical ETF trader. I know some ETF traders that did well and I since then I have wanted to become one of them! I read the few ETF books I could find but most of them told me about ETFs but not how to trade them. This new book from Larry Connors contains 7 strategies that allow you to trade successfully by following simple rules. It's exactly what I was looking for. Thanks! I was a fan of his last book, Short Term Trading Strategies That Work, and after reading his latest book I now have another great trading book on my bookshelf.

another soon to be classic!

ETF's have quickly become one of the most popular trading/investing instruments in the world and for good reason. They provide the investor with easy access to stock groups, currencies, commodities and indexes in a single simple to use instrument. This book fills a missing niche in the literature by providing 7 simple, yet highly effective strategies for extracting profits from these popular tools. This is not "pie in the sky" or "would of, could of, should of" musings from paper traders. The strategies make sense and are based on hard core research from one of the best in the business. These methods will give you the edge in any market environment. They are tested, quantified and proven. I strongly recommend it!

Dave S.

Larry Connors and Cesar Alvarez' new book, "High Probability ETF Trading," can be considered a continuation of the research Connors published in his earlier books, most recently in "Short Term Trading Strategies That Work." Written for short-term traders, the format is similar to his other books: 1. An introduction that lays out a trading philosophy; 2. General rules for setting up the trade, e.g., only take long trades when the S & P 500 Index is above its 200-day moving average; 3. Specific and simple entry and exit rules for a number of different trading systems; 4. Charts showing the entries and exits on various ETFs, with a step by step description of each part of the trade: setup, entry, and exit; 5. Trade results for these systems; and 6. Thoughts on scaling in and out of trades, as well as thoughts on money management. Readers of "how-to" books generally worry about whether the published trades were "cherry-picked" to make the systems look better than they really are in practice. Connors and Alvarez point out the introduction to "High Probability ETF Trading" that the systems' rules are robust, not curve-fitted, and backed by years of statistical test results. I know from reading his earlier books that Connors seeks to develop strategies with a high probability of success. He and Alvarez hit the mark in this new book, which describes various strategies they developed and tested on various non-leveraged ETFs. Some of the strategies, like RSI 25, were developed years ago and described in Connors' earlier books. Other strategies are brand new, like RSI 75 for shorting. Unlike in Connors' earlier books, this book discusses both standard and aggressive entries. "Aggressive" entries are second buys that are scaled in when the ETF becomes more oversold (for a long entry) or overbought (for a short entry). For example, buy the first unit when the 4-period RSI is below 25. Buy the second unit if the 4-period RSI is below 20. As an investment advisor, I have neither the time nor the temperament to wade through books with chapter after chapter of musings, personal thoughts, and disjointed ideas. What I appreciate most about this book, as with Connors' other books, is that the authors lay out their strategies in a no-nonsense, nuts-and-bolts fashion: "If this and this, then do that." I've traded Connors' strategies for years and they work. No one trade will make you rich but the consistent small winners add up. I highly recommend reading "High Probability ETF Trading" if you are a short-term trader looking for strategies that will help you make money.

Impeccable research that makes money

I'm currently reading the digital version of this book at [...] for the third time over the past few days. I'm looking at my ETF charts and I'm impressed at just how reliable Larry's trading setups are. I can confidently state that this book is showing me how to become a better and more profitable ETF trader by teaching me eight simple strategies with rules I can easily follow. I'm looking forward to profiting from it in months and years to come. I recommend it highly.