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5x5x5 Portfolio P tf li Method

December 2007

Disclaimer: The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment Rather you should use the Information only as a starting point for doing additional investment. Rather, independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHERSLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT IF ANY OF CERTAIN MARKET FACTORS UNDER OVER COMPENSATED IMPACT, ANY, FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. How the results were obtained: The simulated returns looked at a universe of over 6000 stocks. The data was obtained from outside sources which we believe are reliable but we cannot assure their complete accuracy. The tests were run from January 1, 1995 August 1995-August 31, 2007. One cent commissions were charged and cash balances assumed 3 month t-bill rates. Any dividends t bill received along the way were included in the test results.

The Connors Group, Inc., 15260 Ventura Blvd., Ste. 2200, Sherman Oaks, CA 91403 Copyright The Connors Group, Inc., 2007.

What TradingMarkets Does and How W T d H We Trade


We buy weakness (pullbacks) and we sell strength (run-ups). Most everything we do is quantified with at least 10 years of rigorous testing. We have done this with numerous systems and methodologies we have published (and still trade) including: Always Buy Value (ABV) TradingMarkets Capital Appreciation Program (ABV), (TMCAP), Raptor-I, Raptor-II, Advanced Windows, PowerRatings, R3/R4, The TradingMarkets E-mini Market Timing Course, The TradingMarkets Aggressive Momentum Method, Raptor-III, and now the 5x5x5 Portfolio Method. We use these methodologies with corporate money, personal money, and private investment money. This does not guarantee that we, nor anyone else, will make money in the future. This is how we trade; its been successful for us, and for many repeat customers. We W provide a money-back guarantee on our courses if you dont make id b k t d t k money over a one-year period of time from the purchase date of the program.

What is the 5x5x5 Portfolio Method?

The 5x5x5 Portfolio Method is the one of the best performing methods weve published to date.

Highlights of the 5x5x5 Portfolio Method include:


Amongst the highest returns of our published research 90% winning months g Protection from market declines Easy to use Full customer support Live on-line monthly classes to make sure youre correctly applying the 5x5x5 Portfolio Method Money back guarantee

Who Created the 5x5x5 Portfolio Method and Who Your Instructor Will Be
Larry Connors has over 25 years experience working in the financial markets industry. He started his career in 1982 at Merrill Lynch and later moved on to become a Vice President with Donaldson, Lufkin, Jenrette. Larry has authored top-selling books on market strategies and volatility trading, including How Markets Really Work and Street Smarts (with Linda Raschke). Street Smarts was selected by Technical Analysis of Stocks and Commodities magazine as one of "The Classics" for trading books written in the past century. Larrys opinions and insights have been featured or quoted in: the Wall Street Journal New York Times Barron's Bloomberg TV & Journal, Times, Barron's, Radio, Dow Jones Newswire, Yahoo!Finance, E-Trade Financial Daily, Futures Magazine, Technical Analysis of Stocks and Commodities, and others Mr Connors has been a featured speaker at a number of others. Mr. major investment conferences.
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Who Created the 5x5x5 Portfolio Method and Who Your Instructor Will Be
The main researcher behind the 5x5x5 Portfolio Method is Cesar Alvarez, Director of Research for Connors Research Group. Cesar was a senior designer of Excel in the 1990's, helping Microsoft further create and build out Excel. For the past 7 years Cesar has been a professional investor and researcher. Cesar has been in the forefront of stock market research, having developed a number of successful trading systems now used by numerous investors and fund managers in the United States and internationally. Steve Primo Director of Education for TradingMarkets and former Primo, floor Specialist on the Pacific Stock Exchange, will be your primary instructor.

Highlights of the 5x5x5 Portfolio Method

5x5x5 Portfolio Method 10 Positions Simulated Returns


January 1, 1995 through August 31, 2007

Assumes a 1 cent per share commission per trade. Cash balances received 3-month T-bill rates. Dividends received are included. Simulated returns, not actual trades. Past results are not indicative of future returns.

5x5x5 Portfolio Method Aggressive Simulated Returns


January 1, 1995 through August 31, 2007

Assumes a 1 cent per share commission per trade. Cash balances received 3-month T-bill rates. Dividends received are included. Simulated returns, not actual trades. Past results are not indicative of future returns.

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The 5x5x5 Portfolio Method Can Be Applied to Individual Stocks, Stocks Options, and to a Portfolio The 5x5x5 Portfolio Method can be traded multiple ways You can use it to trade individual stocks. You can use it to trade options. You can trade it within a portfolio.

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Solid 12+ Years Returns The 5x5x5 Portfolio Method has had an average compounded annual return of 270 20% for over 12+ years (from 270.20% 1/3/1995 through 8/31/2007).

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Monthly Consistency The 5x5x5 Portfolio Method has been profitable for 90% of all months during this time period. p We know of few other systems which have exceeded this 12+ years of consistency.

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Large Monthly Gains The 5x5x5 Portfolio Method has had double-digit (10+%) gains in more than half f ll h lf of all months since 1995 And it did th i 1995. A d it again in August 2007.

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Large Yearly Returns The 5x5x5 Portfolio Method has shown double- or triple-digit returns every year since 1995. i And its on track to do it again this year.

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Daily Trading Consistency 73% of the 5x5x5 trades have been profitable since 1995.

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Strong performance in bull markets

1995 +637.73% 1996 +482.08% 1997 +298.92% 1998 +384.78% 1999 +1033.57% 2003 +217 52% +217.52%

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Strong performance in bear markets

2000 +558.18% 2001 +293 09% +293.09% 2002 +88.74%

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Strong performance in sideways markets k t

2005 +121.59%

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Trades Most Days The 5x5x5 Portfolio M th d ff Th 5 5 5 P tf li Method offers you momentum signals almost daily in a broad universe of stocks, from widely traded names to lesser known large movers among the mid-cap and smallcap stocks stocks. Over the past 12 years and eight months, you would have had at least ,y one position more than 90% of all trading days.
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Simple To Use The 5x5x5 Portfolio Method is simple to trade and easy to learn. You will be able to learn it in a few hours hours. And, it will take you less than five minutes a night to calculate. g No more nightly or weekend research. Just follow the simple rules to get your buy and sell signals on a daily basis.

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Added Bonus You'll receive six months of the 5x5x5 Portfolio Method signals, free every night, to assure that you have the signals for the upcoming day.

Also, if you own AmiBroker or TradeStation software, we will provide you with the add-on , p y module for the 5x5x5 at no extra charge.

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Special Bonus We will also teach you how to protect your portfolio from stock market declines.

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How Do You Protect Yourself?


Many top hedge funds and successful proprietary firms trade being hedged. In this course, you will learn is how to lessen your risk from the overall stock market by being long stocks which have had historical edges while at the same time protecting yourself by b i short th market i d t ti lf b being h t the k t index. For example, if you are long 60% of your portfolio in stocks, stocks you will at the same time be short 60% with a stock market index. If you are long 90% of your portfolio in stocks, you will at the same time be short 90% with a stock market index. You will always be short an equal dollar amount to what you are long. You have the piece of mind of knowing that your g y portfolio is now hedged from stock market declines.

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5x5x5 Portfolio Method Hedged Simulated Returns


January 1, 1995 through August 31, 2007

Assumes a 1 cent per share commission per trade. Cash balances received 3-month T-bill rates. Dividends received are included. Simulated returns, not actual trades. Past results are not indicative of future returns.

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Why does the 5x5x5 Portfolio Method work?


There is ample statistical evidence that stocks tend to move from oversold to overbought conditions and vice-versa. i The 5x5x5 Portfolio Method uses a systematic, quantified approach to identify when stocks are very oversold. We then enter these stocks at levels which have historically risen. Then, after the stocks rally, we look to take advantage of the rally by exiting into strength (the average holding period has been approximately 6 days). On average nearly 3 out of pp y y ) g y every 4 signals have been profitable since 1995, with the winning trades averaging just over 10.9% per trade. This systematic process is then done trade over and over again each trading day.

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The 5x5x5 Portfolio Method Has Worked f th F ll i Reasons: W k d for the Following R
1. It buys numerous momentum pullbacks at levels at which stocks have historically risen. 2. 2 It exits at levels which have historically identified the end of the short-term momentum move. 3. It has been quantified on over 12 years of signals with thousands and thousands of 5x5x5 signals signals. 4. And you now have the option of protecting yourself from market declines with the hedged 5x5x5 Portfolio Method.
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How does the 5x5x5 Portfolio Method work?

Here is the 5x5x5 Portfolio Method Six Step Formula p

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How does the 5x5x5 Portfolio Method work?


Step #1 Each day you will identify strong uptrending momentum stocks which have had sharp pullbacks over the past few days. The 5x5x5 Portfolio M th d P tf li Method combines, t d various bi trend, i levels of precise pullbacks, volatility, volume and portfolio management techniques to p g q diversify your portfolio.

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How does the 5x5x5 Portfolio Method work?


Step #2 You will wait for these strong stocks to have a further pullback the upcoming day. All of your entries will be at specific levels lower than the p previous days close. y Our research has found that uptrending stocks which pull back sharply tend to rise sharply over the near-term. The 5x5x5 Portfolio Method uses a precise combination of proprietary set-ups which have never before been published.

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How does the 5x5x5 Portfolio Method work?


Step #3 You will then use a small (fixed) portion of your portfolio and buy the stock(s) below the previous days close.

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How does the 5x5x5 Portfolio Method work?


Step #4 You will buy up to 10 stocks for the 5x5x5 Portfolio Method which have the same pullback characteristics. You also have the option of p p protecting y g your p portfolio from market declines.

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How does the 5x5x5 Portfolio Method work?


Step #5

You will exit your 5x5x5 positions when the stocks give a sell signal signal. No more guessing when to get out of a trade!

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How does the 5x5x5 Portfolio Method work?


Step #6 You will repeat this same procedure over and over o er again e er da every day.

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5x5x5 Trading Examples

Lets look at a few 5x5x5 setups.

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EGLE

1. The 5x5x5 Portfolio Method triggers an entry signal on EGLE at 21.81. gg y g 2. Three trading days later an exit signal is triggered more than 15% higher at 25.02. 36

CRNT

1. 2.

CRNT has an entry signal at 13.31 g y g The stock signals an exit three days later 15.8% higher.

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CTB

1. 2.

CTB pulls back and triggers an entry signal at 18.98 before reversing sharply higher. An exit is signaled the next day more than 24% higher. 38

Who is the 5x5x5 Portfolio Method For?


The 5x5x5 Portfolio Method is for you if you are looking for a trading methodology which:

Has more than 12 years of simulated test results. Gives you entry and exit parameters executed systematically. Is simple to use.

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Additional Features and Benefits


Strong performance in bull markets bear markets, markets, and sideways markets.

Protection during market declines.

There is no need to sit in front of the screen all day You simply get the signals each day. evening and place your orders for the upcoming days open.
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What will your typical day look like when you are trading with the 5x5x5 Portfolio Method?
You will log on to an easy-to-use website updated each evening with the 5x5x5 list. It will take you less than 5 minutes to get the stocks and place your orders for the upcoming d i day. You can also use the AmiBroker or TradeStation software module (no added cost).

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You Will Receive the 5x5x5 Portfolio Method Immediately


You will receive access to the 5x5x5 Portfolio Method immediately. Then youll attend a 1-hour recorded class taught by Steve Primo. This on-line class can be watched over and over again at your convenience to assure you have full mastery of trading the 5x5x5.

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More About the Class

In the class, we will teach you how to apply the 5x5x5 to individual stock trading, options, g, p , and to a portfolio. Steve will also teach you how to hedge your portfolio from market declines. declines

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Monthly Training
You will be able to attend a live on-line 5x5x5 class every month for the next six months. This class will cover the 5x5x5 set-ups for the past month and discuss the additional ways you can apply the 5x5x5 to your trading. If you cannot attend the live class, you will be able to watch it on video at your convenience. And you will be convenience able to call or email us with any questions you may have along the way.
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Money Back Guarantee


The 5x5x5 Portfolio Method comes with a 100% performance money back guarantee. Apply the system over a twelve (12) month period exactly as described. If the combined s g a s are o profitable, send signals a e not p o ab e, se d us a copy o of your brokerage statements within 30 days after the twelfth month (from date of purchase) and we will give you a full refund for what you paid for the system. Please see our website for additional details.
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Limited Availability

As we have done with a number of our other trading methods, th 5 5 5 P tf li M th d will be th d the 5x5x5 Portfolio Method ill b removed from the market place on December 21, 2007.

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Cost of the 5x5x5 Portfolio Method


Order the 5x5x5 Portfolio Method before it comes off the market forever on December 21, 2007 for $4 995 $4,995.

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How to Order the 5x5x5 Portfolio Method


Call 1-888-484-8220 ext. 1 to order the 5x5x5 Portfolio Method
(outside the U.S. please dial 213-955-5858 ext. 1)

If you have any questions, please contact me at 213 955 5858 ext. 213-955-5858 ext 202 or email me at stevep@tradingmarkets.com
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Disclaimer: The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment Rather you should use the Information only as a starting point for doing additional investment. Rather, independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHERSLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT IF ANY OF CERTAIN MARKET FACTORS UNDER OVER COMPENSATED IMPACT, ANY, FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. How the results were obtained: The simulated returns looked at a universe of over 6000 stocks. The data was obtained from outside sources which we believe are reliable but we cannot assure their complete accuracy. The tests were run from January 1, 1995 August 1995-August 31, 2007. One cent commissions were charged and cash balances assumed 3 month t-bill rates. Any dividends t bill received along the way were included in the test results.

The Connors Group, Inc., 15260 Ventura Blvd., Ste. 2200, Sherman Oaks, CA 91403 Copyright The Connors Group, Inc., 2007.

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