Larry Connors’ Double Seven Trading Strategy — An overview
Larry Connors and Cesar Alvarez revealed a trading strategy called Double Seven. This is a fairly simple system that at the time worked very well among a wide range of ETFs.
In this post, we look at the performance of the Double Seven trading strategy over the last twenty-one years in a wide range of liquid ETFs. Does the Double 7 still work? Yes, the trading strategy still works, but Larry Connors has other strategies that work better.
The strategy has just a few parameters and uses the following trading rules:
The close must be above the 200-day moving average.
The close must be at a seven-day low.
If 1 and 2 are true, then go long at the close.
Sell when the close is at a seven-day high (sell at the close).
An example of a trade in the S&P 500 is shown in the below image.
You can find more info about this trading strategy here:
https://www.quantifiedstrategies.com/larry-connors-double-seven-strategy-does-it-still-work/