Trading Markets' ETF PowerRatings

I recently reviewed the statistical trading book High Probability ETF Trading by Larry Conners, which provides several statistical trading strategies that are specifically designed for trading ETF (Exchange Traded Fund) markets. Trading Markets (Larry's company and the book's publisher) has just released a new ETF trading tool that goes hand in hand with the book.

The tool is called ETF PowerRatings, and it provides statistical rankings for many ETF markets that are designed to indicate whether each ETF should be bought or sold (or neither). The ETF rankings are based upon statistical analysis of the ETF markets from 2003 to 2009, and while the exact analysis method is not disclosed, it is most likely very similar to the analysis that is used in the book (which would be expected).

I have reviewed the ETF PowerRatings tool, and to be honest, when I first saw the tool, I was not overly impressed, because the tool simply seemed to be saying buy or sell without providing any additional information. However, the tool also provides charts of each ETF market with the buying and selling indications marked on the chart (as shown above), so it is possible to see exactly where each buying and selling indication occured. This provides a much more useful view of the buying and selling indications, and makes the tool much more useful.

If you are an ETF trader or a statistical trader, or if you have read High Probability ETF Trading, the ETF PowerRatings tool may be of interest to you. The ETF PowerRatings tool, and further information about the tool, are available at the Trading Markets web site. The tool is available for free for seven days (i.e. a free trial), after which it costs $79.95 per month (before any yearly discounts).

Note that while I have tested the ETF PowerRatings tool, I have not reviewed any of the trades that it would have indicated, so as usual, I recommend that traders perform their own testing of the tool (which could easily be done during the seven day trial) before they make any of the trades that are suggested.