{"id":14382,"date":"2023-02-24T13:07:38","date_gmt":"2023-02-24T10:07:38","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=14382"},"modified":"2026-05-26T10:55:41","modified_gmt":"2026-05-26T07:55:41","slug":"larry-connors-double-7-trading-strategy","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2023\/02\/24\/larry-connors-double-7-trading-strategy\/","title":{"rendered":"Larry Connors' Double 7 Trading Strategy"},"content":{"rendered":"\n

In this material, we will get acquainted with the \"Double 7\" medium-term trading strategy<\/a> of the famous trader Larry Connors<\/strong>. We will learn what it is based on, and how it can be used in trading. We will consider its advantages and disadvantages and give an example of trading using this strategy.<\/p>\n\n\n\n

<\/span><\/a>How the Double 7 strategy works<\/span><\/h2>\n\n\n\n

The Double Seven is a fairly simple trading system that was introduced in the book “Short-Term Trading Strategies That Work<\/strong>”. It was written by the famous investment consultant and stock trader Larry Connors in co-authorship with the developer of trading systems Cesar Alvarez. The strategy was created for trading in the stock market, and the authors used it to trade major stock indices<\/a> (S&P 500<\/a>, Dow Jones<\/a>) or index ETFs<\/a>.<\/p>\n\n\n\n

The Double 7 is based on the concept that when trading major market indices, an effective strategy is to buy on pullbacks in a major uptrend. A valid uptrend is defined as the price being above the 200-day Moving Average<\/a>. A pullback is defined as a close below the lowest low of the last seven days, in which case a buy is opened. Once a buy is opened, one must wait for a new seven-day high to close the position.<\/p>\n\n\n\n

After reading the trading rules, we can see that the \"Double Seven\" was developed for daily charts and is only used to open and close long positions in a rising market. That is, it works only in one direction – to buy the asset, shorts (short positions) are not used in this strategy and Stop Loss<\/a> orders are not set. When tested by Connors and Alvarez, the system showed positive results on stock indices, ETFs, and highly liquid US stocks<\/a>.<\/p>\n\n\n\n\n\n

<\/span>Setting the Moving Average indicator<\/span><\/h2>\n\n\n\n

This strategy uses the Moving Average<\/a> indicator to determine the current trend. Moving averages are included in most modern trading terminals, plotted directly on the price chart. In the popular trading platforms, MetaTrader 4<\/a> and MetaTrader 5<\/a>, you can install the Moving Average on the chart of the selected instrument through the Main Menu: Insert → Indicators<\/a> → Trending → Moving Average. In the setup window that appears, select period 200, line colour and thickness, MA method: Simple.<\/p>\n\n\n\n

\"Setting<\/a>
Setting the Moving Average indicator<\/em><\/figcaption><\/figure>\n\n\n\n

How to trade the Double 7 strategy<\/p>\n\n\n\n

The algorithm for using the strategy in trading:<\/p>\n\n\n\n

    \n
  1. The price chart should be above the 200-day moving average, indicating an uptrend.<\/li>\n\n\n\n
  2. We must wait for the day to close at the low of the last 7 days.<\/li>\n\n\n\n
  3. If points 1 and 2 are met, a buy position is opened.<\/li>\n\n\n\n
  4. The signal for exiting a position is to close the day at the seven-day high.<\/li>\n<\/ol>\n\n\n\n

    <\/span><\/a>Example of trading the Double 7 strategy<\/span><\/h3>\n\n\n\n