Connors Research Traders Journal

A Better Way To Protect Your Capital

This past week was a historical week for the market on a number of fronts. The velocity of the decline in such a short period of time has rarely been seen and in a few cases never been seen before when the market was above its 200-day moving average. There was also excessive “hedge fund…    [Read More] 

Volatility Hurts!

One of the first things you learn in a college-level finance class is that a “rational” investor should get rewarded for taking on more risk. After all, why would an investor accept higher risk if they aren’t going to get compensated for it? This assumption comes from the original academic pricing model for securities…    [Read More] 

What Is The Best Way To Trade?

We are often asked, “What is the best way to trade”? That is not an easy question to answer. In fact, we would go as far as to say there is no right answer to that question. First of all, we don’t view any specific way of trading to be the “best”. We all have…    [Read More] 

Weekly RSI – Large Historical Edges Remain In Place!

For over 15 years, Connors Research and our related companies have shown that short-term historical edges have been in place when using 2 and 4-period RSI. This has been shown both on a daily basis and on a weekly basis. Traders have come to us and asked how we run these tests. In previous years,…    [Read More] 

Fact-Checking CNBC with Python

The ability to code is like having a trading superpower.  For instance, when something that seems “rare” happens in the marketplace, you can quickly and easily write some code to see how rare that event actually is.  Instead of relying on the financial media, you can do your own analysis. More importantly, you can see…    [Read More] 

Buying Quality Companies in an Uptrend Strategy

This past weekend, we shared with you a high performing, simple to understand Quantamentals strategy which has out-performed buy and hold by over 700% since 2003. Today, we’d like to share with you a Quantamentals strategy we originally published in August. This strategy outperformed buy and hold by over 1300%.  Not only has it had…    [Read More] 

Here’s How To Stack Trading Edges In Your Favor

Whether one uses technical analysis, fundamental analysis, or quantitative analysis, we’re all looking to do the same thing. Find the opportunities with the largest edges and look to profit from them while minimizing the risk. Connors Research, and the research which preceded the forming of our company, has been publishing market strategies and edges since…    [Read More] 

The Relative Strength Momentum Edge

In last week’s Connors Research Trader’s Journal, we discussed the low volatility edge. This is the empirical observation that stocks with lower historical volatility tend to outperform stocks with higher historical volatility through time. Today we are going to present another edge to incorporate into your trading and investing models – relative strength momentum.   While…    [Read More] 

The Low Volatility Edge

One of the main takeaways from our recent Quantamentals course is that combining different edges together leads to greatly enhanced trading and investment results.   In our course, we specifically combined historical edges from Fundamental, Technical and Quantitative analysis to build high performing portfolios. This stacking of edges ultimately led to portfolios with double-digit returns and…    [Read More] 

3 Rules – A Nearly 500% Increase in Cumulative Returns

Can your trading and portfolio returns be increased by combining the best of technical analysis, fundamental analysis, and quantitative analysis (known as “Quantamentals”)?  In our opinion, and based firmly on the data, the answer is yes…oftentimes by a great amount. We’ve been publishing trading and investing research since 1995. Based on what we’re seeing from…    [Read More]