The S&P Low Volatility Breakout Trading Method

One of the first trading scenarios that many traders learn is the concept of a “breakout”. This is possibly because a “breakout” is thought to be “easy to spot”, making breakout strategies very popular.

However, lack of proper knowledge, coupled with emotion-based decisions can lead to incorrect techniques that may prevent you from trading breakouts successfully.

Connors Research has recently applied a thorough quantified approach to breakout strategies, resulting in the new S&P Low Volatility Breakout Trading Strategy. Backed by data from over 11 ½ years of simulated historical results, this strategy may improve your success with breakouts by giving you several specific ways to:

• Identify True Breakouts.
  Many traders rely on visual interpretation of charts and graphs. We give you quantified filters and entry rules — eliminating guesswork and personal interpolation.
• Maximize Your Gains.
  Precise exit rules can help prevent you from being fooled by “temporary corrections” and help you learn how to hold the position long enough to realize the full potential of each trade. (Read on to see an example…)
• Focus on Safety
  – The strategy trades blue chip stocks with low volatility
  – The positions are all long, taken with the trend
  – Medium-term holds (4 months on average)
  – Share turnover is low
  – Moves to cash in bear markets The S&P Low Volatility Breakout Trading Strategy is designed to meet the needs of IRA accounts, Investment Advisors, and traders seeking to outperform the market with significant controls for risk — built-in.

The S&P Low Volatility Breakout Trading Strategy
– – Back-tested Results

This is the first time Connors Research has ever offered a quantified stock trading breakout method. Over the years, one of our most popularly used strategies is the S&P Selective Strategy. As strong as that strategy is, we believe the quantified research on this strategy is even stronger.

Here are the simulated historical returns for this strategy:

(mouseover to enlarge)

Here is a sample signal on XEL. The Entry Signal from the strategy is March 12, 2012 at $26.14. The strategy held the position through two “temporary corrections” to post its Exit Signal on July 30, 2012 at $29.18 — a gain of 11.56%.

Here is strategy signal on MasterCard (MA). The Entry Signal from the strategy is Feb. 6, 2012 at $390.54, and its Exit Signal came on Sept. 28, 2012 at $451.48 — a gain of 60.94 points. 

Below is another simulated trade, this one on Pfizer (PFE). The Entry Signal from the strategy is June 25, 2012 at $22.07, and the Exit Signal is on Sept. 28, 2 012 at $24.85 — a gain of 12.46%. 

This Strategy is Available Only Until Nov. 14th

The S&P Low Volatility Breakout Trading Strategy is being offered to a limited number of traders for a short period of time.You will not be competing with thousands of other traders for fills.

• The S&P Low Volatility Breakout Trading Strategy is available for purchase — on a pre-order basis — only until November 14, 2012.
• A One-time Distribution of the Strategy:
  The S&P Low Volatility Breakout Trading Strategy will be taught personally by Larry Connors at an online presentation on November 14, 2012.You will also receive a recording of the teaching presentation, along with the written documentation for the strategy — all on Nov.14th minutes after the meeting concludes via a download link.
• After the Nov.14th teaching presentation, this strategy will be removed from the market for at least 12 months.

Benefits of the S&P Low Volatility Breakout Trading Strategy

• Trades Only High-Quality Blue Chip Stocks
• Low-Volatility / High-Gain Profile
• Limited Distribution to Reduce Competition from Other Traders
• This Strategy is Designed to Minimize Risk.

We believe this particular combination of features will make the S&P Low Volatility Breakout Trading Strategy one of our more popular strategies for traders seeking a combination of solid gains with low risk.