Notes for December 30, 2011

[Rembert]

Thanks Paul,

Always interesting to learn new strategies. Connor's TPS strategy might be a good addition to diversify to the rest of the systems I trade. 90% winning trades seems like too good to be true at first sight so I looked up the trading rules. The strategy is one of scaling into a losing initial position by averaging down, a concept that is in general not a good one if you are on the wrong side of a trend. So I was hoping to see some kind of stop loss in the rules to prevent serious account damage in case of a black swan event where the trade goes completely against you. But there is no stop loss. Shouldn't be too hard to implement one of course. Do you have any toughts on that ?

Is there a site that gives signals for Connor's TPS strategy or is it something one has to implement on their own ?

Also best wishes to all for 2012, may it be a trending year.

update : found a recent Larry Connors webinar and some discussion on the use of stop loss orders with his strategies http://forums.worden.com/default.aspx?g=posts&t=53070