How to trade Larry Connors ideas?

[tbmuc]

Many of Larry Connors ideas are in the form:

if "oversold condition" then buy tommorow n% below todays low.

How to trade this in practice? From the oversold stocks often less than 1% reaches the entry level.

Someone could place daily - lets say - 50 Limit orders into market and normally 0-5 orders would be execute. Under normal conditions that would be fine. But when market anomalies like flash crashes occur, that cound be extremely dangerous. Than all orders could be executed.

Does someone has an idea, how to handle that?

 

[tshoe43]

Many of Larry Connors ideas are in the form:

if "oversold condition" then buy tommorow n% below todays low.

How to trade this in practice? From the oversold stocks often less than 1% reaches the entry level.

Someone could place daily - lets say - 50 Limit orders into market and normally 0-5 orders would be execute. Under normal conditions that would be fine. But when market anomalies like flash crashes occur, that cound be extremely dangerous. Than all orders could be executed.

Does someone has an idea, how to handle that?

This doesn't address your particular issue, but I also use Connor's strategies. However, I have chosen to use his technique of incremental buys with MOC orders once the RSI2 <15. I only trade leveraged ETFs.

 

[levelzero]

This doesn't address your particular issue, but I also use Connor's strategies. However, I have chosen to use his technique of incremental buys with MOC orders once the RSI2 <15. I only trade leveraged ETFs.

How is it working for you? I am looking at dropping my list of stocks to just 5, two of which are leveraged etfs.

 

[tshoe43]

It's worked very well for me. I primarily trade with $TNA and $TZA. However, I don't exit the entire position on RSI >70. I will sell 1/2 and use a trailing stop in case it continues to run. I have used this methodology with other etfs such as $NUGT, $UGAZ, $ERX, and $EDC.