11/2 – ETF Trading – IWM, UWM, EWC, EWT, EWY
You may have full trading positions for any or all of the etfs we’ve been following the past week – IWM, UWM, EWC, EWT and EWY.
Now, we’re just exercising some patience as we wait for the market to move higher from here. Futures are pointing higher this morning.
Our exit signals are triggered when the etf price is greater than it’s MA(5), or – for a potentially larger gain – when the RSI(2) is greater than 70. All etf trades are at the market close. Please trade responsibly!
Discover the research behind all of these etf trading signals. Get the book by Larry Connors: High Probability ETF Trading. His etf trading strategies have only a few rules and you’ll be able to back-test and apply the strategies to the next trading day. With easy to follow signals, clear explanations, and years of tested results, there is no better place to start finding new trading edges than in High Probability ETF Trading – available at Amazon.com or save $10 at TradingMarkets.com.





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Hello Seth,
What is the risk management rule for handling an etf that experiences a serious drawdown?
RBB
You could always use stops on your trades – for example limit your loss to say 3%. But if you follow the strategies and research of Larry Connors, he argues against using stops for protection. His research shows that trading results actually improve without the use of stops. The best results occur by following the trading signals – in the case of my current trades, when the RSI(2) of the closing price is greater than 70. Following these signals and rules results in a trading success ratio of better than 80%. I will say that it’s sometimes tough to follow the rules when you’re upside down on a trade!