Book Review: High Probability ETF Trading

Summer time is here and it's time to pick up a good book. Fortunately for me, I was recently provided with a reviewer's copy of Connors Research's new book, "High Probability ETF Trading".

You may recall Larry Connors from his early work applying non-traditional look-back periods to the common Relative Strength Index (RSI) indicator. In this book, he and lead researcher and co-author Cesar Alvarez take some of that early research to the next level with seven strategies designed to fade short-term overreactions in price. Here they focus on higher-liquidity ETFs as superior vehicles to gain exposure across broad asset classes with limited corporate/individual stock risk.

I believe that new and intermediate traders alike will especially benefit from the concepts presented in this book, particularly if they have been looking to delve into quantitative, mean-reversion based trading. As well as identifying high probability entries, readers will also learn the more nuanced arts of scaled entries and dynamic exits.

My only critical comment is that, like all mechanical systems, these systems would likely have performed differently during various historical periods (beyond the tested periods). It is naturally always important for traders to know current cycle periodicity and whether they are in trending or mean-reverting environments.

True to form for Connors Research, all the strategies are conceptually well backed, completely systematic, clearly described and quantified. That is a hard combination to come by among trading books. In fact, I note that today's big pre-Fourth of July move would have been caught by several of the systems. Highly recommended!

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

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