Connors’ Double Seven Long Strategy with a 200-Day Trend Filter

Summary

The Double Seven method is presented as a long-only daily strategy for ETF or futures index markets. It first requires the close to be above its 200-day moving average. An entry occurs when the day’s low reaches or falls below the lowest close over the preceding seven periods. The position is closed when the day’s high reaches or exceeds the highest close over the exit lookback, also set to seven periods.

The document attributes the method to Larry Connors and says it has performed well on major ETF or futures indexes, with the S&P 500 mentioned as a backtest context. It provides no return figures, test dates, execution assumptions, or comparative results, so the performance claim cannot be assessed from this text. It advises adjusting commissions and fees to match the broker before backtesting. The entry and exit reference different price fields, and the description does not discuss intraday sequencing or slippage.

Key ideas

• The strategy takes long positions only and is intended for daily data.
• A close above the 200-day moving average acts as a trend filter.
• The entry trigger uses a low relative to a seven-period lowest-close level.
• The exit trigger uses a high relative to a seven-period highest-close level.
• Broker commissions and fees should be included when backtesting.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.