Short Term Trading Strategies That Work presents a quantified and research-driven framework for short-term stock and ETF trading. Written by Larry Connors and Cesar Alvarez, the book focuses on statistical market behavior, mean reversion principles, pullback trading, volatility analysis, and short-term timing strategies designed for active traders. Rather than relying on opinion-based forecasting, the authors emphasize systematic testing and evidence-backed trading methodologies.
The book challenges many traditional assumptions commonly promoted in retail trading and financial media. Throughout the text, the authors demonstrate how buying pullbacks often outperforms buying breakouts, why emotional market extremes create opportunity, and how quantified data can reveal recurring behavioral patterns in financial markets. The methodology centers heavily on mean reversion, short-term statistical edges, and exploiting emotional overreactions in stocks and equity indices.
A major component of the book is the application of quantitative testing to practical trading decisions. Readers are introduced to concepts such as the 2-period RSI, volatility-based market timing using the VIX, overnight trading edges, exit optimization, and structured short-term setups for equities and ETFs. The authors also examine the role of market psychology and explain how trader behavior contributes to recurring market inefficiencies.
The material is positioned for traders seeking rules-based strategies supported by historical research rather than discretionary prediction. By combining statistical analysis, technical trading concepts, and practical execution rules, the book offers a structured framework for traders interested in short-term systematic trading approaches.
✅ What You’ll Learn:
- How to identify short-term mean reversion opportunities
- Why pullback trading can outperform breakout trading
- How to use quantified market research in trading decisions
- Methods for applying the 2-period RSI in short-term trading
- How to use the VIX for market timing and sentiment analysis
- Techniques for trading oversold and overbought market conditions
- How overnight market behavior impacts trading performance
- Methods for improving entry and exit timing
- Why emotional market extremes create trading opportunities
- How to structure statistically backed trading strategies
💡 Key Benefits:
- Provides quantified evidence behind short-term trading concepts
- Focuses on repeatable, rules-based methodologies
- Emphasizes objective research over market opinions
- Demonstrates practical mean reversion applications
- Helps traders understand market psychology through data
- Combines technical analysis with statistical validation
👤 Who This Book Is For:
- Intermediate traders seeking quantified trading methodologies
- Active stock and ETF traders focused on short-term setups
- Technical traders interested in mean reversion systems
- Traders looking to build systematic, data-driven strategies
📚 Table of Contents:
- Chapter 1: Introduction
- Chapter 2: Think Differently — Rule 1: Buy Pullbacks, Not Breakouts
- Chapter 3: Rule 2 — Buy the Market After It’s Dropped; Not After It’s Risen
- Chapter 4: Rule 3 — Buy Stocks Above Their 200-day Moving Average, Not Below
- Chapter 5: Rule 4 — Use the VIX to Your Advantage… Buy the Fear, Sell the Greed
- Chapter 6: Rule 5 — Stops Hurt
- Chapter 7: Rule 6 — It Pays to Hold Positions Overnight
- Chapter 8: Trading with Intra-day Drops — Making Edges Even Bigger
- Chapter 9: The 2-Period RSI — The Trader’s Holy Grail of Indicators?
- Chapter 10: Double 7’s Strategy
- Chapter 11: The End of the Month Strategy
- Chapter 12: 5 Strategies to Time the Market
- Chapter 13: Exit Strategies
- Chapter 14: The Mind
- Chapter 15: The Finale
Short Term Trading Strategies That Work By Larry Connors, Cesar Alvarez


Jacoby Ballard (verified owner) –
Excellent quantitative guide to algorithmic trading.
Drake Huang (verified owner) –
Disappointed as it was really all about statistics of trades. Maybe suitable for high frequency or algorithm trading but not any good for me. Not much substance to the book, I could summarise it in a couple of sentences
Brayan Chen (verified owner) –
Excellent strategies
Carter Fitzpatrick (verified owner) –
After having taken a college level investment classs and being in the NAIC for about a decade, I concur with most of the results of the research here. On that note, if you are not new to investing or are comfortable with charting, you may not want to shell out big bucks for the paper version.
Francesca Allen (verified owner) –
Profits have gone up by being more tight on RSI levels..this book is must BUY. Thanks to Mr. Connor and Alvarez
Cal McMahon (verified owner) –
I cannot believe how expensive a book this is, with very little content.
Valeria Parra (verified owner) –
Good book
Valery Chase (verified owner) –
Strategies based on sound research with back data. Glad I bought this book and I’m buying some his others as well
Remy Sparks (verified owner) –
Larry has a lot of knowledge and he enjoys teaching the book has a lot of different strategies that make very common sense
Hattie Lynn (verified owner) –
The material is very straight forward and requires full attention as there are many details condensed in every paragraph. Editing is very good. Loved it and would recommend anyone to get it NOW !
Thaddeus Colon (verified owner) –
Probably more than 10 years since this book was written. But many of its fundamental holds true . The book is so clear and precise. So direct to the point when u start reading u won’t stop
Emiliano Underwood (verified owner) –
Stats for all strategies could be just a result of curve fitting, no evidences is provided to show otherwise. Also none of the strategies include measurements of risk, drawdowns, equity curves, etc.
Mariam Robertson (verified owner) –
Understanding how to use all the tools in the toolbox allowed me to correct failed strategies. Larry Connors helped me avoid failed trades!
Davion Chan (verified owner) –
Short: just to the point, with a strong bias on the long side of the ES, but Providing a lot of value to someone looking for systematic ideas with positive expectancy …
Otis Boone (verified owner) –
Pretty good book, but just know his strategy is all about mean reversion. If you are a breakout trader look elsewhere, other than that good read on some well backed mean reversion strategies.
Alejandra Lim (verified owner) –
Just have to apply the strategies now. Some of the strategies seem to not come up too often but with an 80 percent accuracy then I will wait for them. Thank you for the book and your research.
Ensley Palacios (verified owner) –
All good.
Belen Donovan (verified owner) –
The Good: Its a good book to understand Mean reversion as a concept.
The Bad: The strategies provided in the book do not have the edge anymore. Plus the data is selected from 1997-2007, just before the GFC. In the final P&L when we apply the strategy during GFC and Coronavirus crisis, it negates all the returns which it made. Plus the book only talks about the winning percentage and do not show any P&L. Just one big loss from GFC and Covid crisis will negate most of the profits made in before the time period.
The Ugly: Not robust at all but carefully cherry picked the favorable time-period from the history which supports author’s concept.
Annabella Fry (verified owner) –
The content is precise and concrete.
It must be an eye opener to developing a better system trading.