Comments on: Connors ETF strategy 1: Three day high/low method http://www.edgerater.com/blog/index.php/connors-etf-three-day-highlow-method/ Patterns for stock trading success Fri, 13 Jan 2012 01:36:52 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: David http://www.edgerater.com/blog/index.php/connors-etf-three-day-highlow-method/#comment-123 David Mon, 29 Mar 2010 23:05:36 +0000 http://www.edgerater.com/blog/?p=68#comment-123 The only way to test a published system's reliability is to use different data from what the system's creator used. In other words, how has it done since the book was published? The only way to test a published system's reliability is to use different data from what the system's creator used. In other words, how has it done since the book was published?

]]> By: chriswhite8 http://www.edgerater.com/blog/index.php/connors-etf-three-day-highlow-method/#comment-121 chriswhite8 Fri, 22 Jan 2010 06:38:33 +0000 http://www.edgerater.com/blog/?p=68#comment-121 The book does talk about placing trades at market close and yet the only time you can guarantee to have all the data necessary to calculate the indicators needed is at that same moment and so it is impractical (and nearly impossible) to do so.<br><br>To develop a strategy that is followable by the casual swing trader (one who looks at end-of-day data in the evening after the market has closed and decides on positions for the following day based on that data) you do need to backtest these strategies using entries available on a subsequent day.<br><br>EdgeRater has a toggle switch whereby you can see the statistics using a baseline price of close of event day or open of following day. If you set it to open of following day, all of the gaps are taken out and the statistics reflect that entry.<br><br>I believe there is still a positive expectation when you set this switch to open of following day, but I don't have the numbers to hand. The book does talk about placing trades at market close and yet the only time you can guarantee to have all the data necessary to calculate the indicators needed is at that same moment and so it is impractical (and nearly impossible) to do so.

To develop a strategy that is followable by the casual swing trader (one who looks at end-of-day data in the evening after the market has closed and decides on positions for the following day based on that data) you do need to backtest these strategies using entries available on a subsequent day.

EdgeRater has a toggle switch whereby you can see the statistics using a baseline price of close of event day or open of following day. If you set it to open of following day, all of the gaps are taken out and the statistics reflect that entry.

I believe there is still a positive expectation when you set this switch to open of following day, but I don't have the numbers to hand.

]]> By: jandrewn http://www.edgerater.com/blog/index.php/connors-etf-three-day-highlow-method/#comment-120 jandrewn Thu, 21 Jan 2010 12:19:11 +0000 http://www.edgerater.com/blog/?p=68#comment-120 I have also been expermenting with Connors strategies. My comment is that as I recall his book indicates he used end of day data to run the backtest and as such it is only an academic excercise. It is not possible to trade at close with EoD Data.<br><br>I do believe he offeres some very interesting trading strategies from their simiplicity and low risk nature. However, I would like to see some work on realalistic enter time frames.<br><br>I am currently working on trades on the open the following day and trading during specific time frames (9 for entery and 2:30 for exit). As it has been several decades since I did any programming I am learing C# and easyscript at the same time.<br><br>Thanks for this blog and your efforts -- I look forward to reading more. I have also been expermenting with Connors strategies. My comment is that as I recall his book indicates he used end of day data to run the backtest and as such it is only an academic excercise. It is not possible to trade at close with EoD Data.

I do believe he offeres some very interesting trading strategies from their simiplicity and low risk nature. However, I would like to see some work on realalistic enter time frames.

I am currently working on trades on the open the following day and trading during specific time frames (9 for entery and 2:30 for exit). As it has been several decades since I did any programming I am learing C# and easyscript at the same time.

Thanks for this blog and your efforts — I look forward to reading more.

]]> By: rbrownlnk http://www.edgerater.com/blog/index.php/connors-etf-three-day-highlow-method/#comment-119 rbrownlnk Thu, 21 Jan 2010 11:07:17 +0000 http://www.edgerater.com/blog/?p=68#comment-119 Thank you Chris,<br><br>Very nice. This is solid information, and the blog is clean and easy to read. Thank you Chris,

Very nice. This is solid information, and the blog is clean and easy to read.

]]> By: JonT http://www.edgerater.com/blog/index.php/connors-etf-three-day-highlow-method/#comment-118 JonT Thu, 21 Jan 2010 06:24:07 +0000 http://www.edgerater.com/blog/?p=68#comment-118 Thanks for this info - very helpful to analyze strategies that are in the public domain so that we know if they are any good. Thanks for this info – very helpful to analyze strategies that are in the public domain so that we know if they are any good.

]]>