Commodity ETFs are often considered to be long-term investments by many investors – similar to mutual funds, but they are also excellent securities to trade. Larry Connors has written High Probability ETF Trading: 7 Strategies to Improve Your ETF Trading, which describes seven trading methods for ETFs that have an excellent track record across all types of ETFs.
The popularity of ETFs continues to grow. There are ETFs that represent most of the stock indexes in the U.S. and many other countries. There are also commodity ETFs that consist of a single commodity and several funds are comprised of a diverse group of commodities. There is also a wide variety of sector ETFs that cover just about every major investment sector you can imagine.
High Probability ETF Trading presents seven trading strategies that apply to all commodity ETFs, as well as all the other unleveraged ETFs. Most of the strategies have a success rate greater than 70 percent and some exceed 90 percent. The strategies have been tested from the long and short side since each fund's inception.
It is very encouraging to see such robust test results for these strategies, which cover such a diverse group of markets. Even more encouraging is the fact that they have performed very well from the short side and the long side.
These strategies should be very interesting to those who like to spend a limited amount of time trading. Most of the strategies have an average holding period of around 5 days, but it only requires trades to be placed at the end of the trading day. There is really no need to stare at your quote screen all day with these strategies. You will have to watch for certain setups and be ready to place trades at the end of the day if trading signals are generated.
About Larry Connors
Larry Connors has written some other trading books that I have found very useful. Short Term Trading Strategies That Work reinforces the notion of buying on weakness in an uptrend and selling when a market is overbought in a downtrend. There are some excellent trading techniques in this book. The classic book Street Smarts that Connors wrote with Linda Raschke was one of the most important trading books of its time.
High Probability ETF Trading: 7 Strategies to Improve Your ETF Trading will give you some very good trading strategies for commodity ETFs or any other ETFs you have an interest in trading. The test results are included in the book and they are impressive. You can read this book in a fairly short period of time, as it gets right to the point with each strategy. I would recommend this book to anyone who has an interest in trading a commodity ETF or other ETFs.
Disclosure: A review copy was provided by the publisher. For more information, please see our Ethics Policy.
