Larry Connors’ Double Seven Trading Strategy (Double 7 Trading System Explained)

Larry Connors and Cesar Alvarez revealed a trading strategy called Double Seven in their book Short Term Trading Strategies That Work. This is a fairly simple system that at the time worked very well among a wide range of ETFs. The book was published in 2010, and it would be interesting to look at the performance over the last decade since its publication.

In this article, 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.

What is Larry Connors’ Double Seven strategy?

The strategy has just a few parameters and uses the following trading rules:

Trading Rules

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1. The close must be above the 200-day moving average.
2. The close must be at a seven-day low.
3. If 1 and 2 are true, then go long at the close.
4. Sell when the close is at a seven-day high (sell at the close).

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This is all there is to it. No