TradeStops Review [Is This TradesSmith Tool Legit?]

Welcome to my review of the TradeStops platform.

If you would like to learn more about the platform, you are at the right place.

Whether you are a newbie or a veteran who’s been trading for many years, you could use a platform that helps you make sense of things since everything tends to move fast these days.

The Tradestops program is designed for that. It is supposed to alert you when something worth noting happens that you need to factor into your decision making. It also tracks equities using proprietary algorithms.

I’ve gone through it and would like to share my findings with you. Keep reading this unbiased TradeStops review if you would like to know whether the program is worth considering.

Before I start…

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TradeStops Review

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Introduction to TradeStops

TradeStops is a service offered by Keith Kaplan through a firm called TradeSmith. It is a web-based stock-tracking and alert program that monitors and synchronizes your online portfolio to enable you to manage your portfolio more effectively.

Tradestops Review

It is a stock analysis tool that enables you to determine what you should buy or sell, how much you should invest, and when you should make those moves.

The coronavirus pandemic and the economic fallout it created made the market more volatile than usual, which explains why it has been difficult to predict how the stock market is likely to move. Too much volatility also poses a threat because it can erode the gains you make with your investments.

Through TradeStops, Keith introduces you to a breakthrough formula that will help you make smart investments in a turbulent market.

Not a tool to buy and sell shares

However, you should not forget that the platform is NOT designed to handle your transactions; it is NOT a stock finder where you can buy and sell your shares. It is only meant to help you find good investment opportunities.

It is a browser-based tool:

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It can be used by both people who are starting their investment journey as well as veterans. It is suited to both short- and long-term investors.

It enables you to manage a portfolio by balancing your stocks based on market volatility and risk, which we will get into later.

It can track indices, mutual funds, ETFs, OTC trades, equities, and penny stocks. As long as the asset you are targeting can be traded on an American exchange, there is a good chance this platform covers it. In addition to that, it also enables you to track capital markets in England, Germany, Canada, and Australia.

You can synchronize it with accounts offered by more than 15 brokerage firms (all the the major ones in the US are included).

The most important feature is the alert system. It notifies you when your positions have been affected by predetermined factors.

For example, you get an alert when your trailing stop is likely to be affected by the Volatility Quotient or you may receive alerts about entry signals, price targets, and other factors.

Tradestops has thousands of customers who track up to $20 billion in assets.

Speaking of smart investments during the coronavirus pandemic, other investment gurus have been telling investors how they ought to invest and I have reviewed a couple of their presentations here, including How to Navigate The Coronavirus Crash (Jeff Brown), Coronavirus Investment Summit (Jim Rickards), and Fighting The Coronavirus – 3 Stocks To Invest In (Ray Blanco).

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Who is behind TradeStops?

TradeStops was created by Keith Kaplan. He offers investment advice and shares stock ideas through his advisory services.

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He is the CEO of TradeSmith LLC (before he became the CEO, he was the chief product officer).

He has worked for Beacon Street Services as its CEO and was also the director of operations strategy at Stansberry Research.

He graduated with a Bachelor’s degree in Computer Information Systems from Towson University.

An Overview of TradeSmith

TradeSmith is the company behind Tradestops. It is based in Spring Hill, Florida, where it was founded by Richard Smith in 2013. Smith sold the company to a financial publisher in 2020 for an undisclosed sum.

TradeStops Review [Is This TradesSmith Tool Legit?] 26The firm is said to have approximately 51 to 200 employees (I did not verify this). It works with firms like TD Ameritrade, USAA, Charles Schwab, Morgan Stanley, Merrill Edge, Wells Fargo, Capital One, Edward Jones, and Fidelity. You can manage one or more portfolios with just a few clicks.

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Although not much about the way the firm runs is known to most people, it must have done something right to have lasted all these years.

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How Does TradeStops Work?

The main challenge posed by today’s stock market is that it’s volatile and unpredictable. That’s why you need to follow a solid investment strategy that will help you make sense of the market.

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The TradeStops investment strategy is all about a “blind-market” formula that predicts where the stock market is moving.

With it, you can make more informed investment decisions based on how much risk you can handle, which is what TradeStops is all about (I should clarify that informed decisions do not always equate to better outcomes).

TradeStops’ formula is meant to help you accurately predict certain price movements using a couple of parameters and research tools. These include:

Volatility Quotient

Volatility Quotient, or VQ is one of the key features of Tradestops investment portfolios. It enables you to calculate the level of risk that comes with each stock in the portfolio.

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It calculates the percentage value of the volatility of every stock in your portfolio. This value determines how far below the current price you should set your trailing stop loss.

A trailing stop loss enables you to lock in on the largest possible loss you can incur on a stock.

VQ helps you quantify the rise and fall of a stock because all stocks move up and down over time. Every stock has a VQ.

How does the volatility quotient work?

For example, Tesla has a VQ of 43% — which indicates that it is expected to gain as much as 43% on average. At the same time, it may also fall by that percentage.

On the other hand, Johnson & Johnson has a VQ of 15%. Compared to Tesla, this stock has a lower probability of moving up or down. Therefore, Johnson & Johnson stock is less volatile and more stable.

VQ is used to compare stock volatility and this can be crucial when extrapolating price patterns.

Then there are the smart trailing stops. They enable you to sell a stock based on a price you will have decided on in advance. This way, smart trailing stops allow you to optimize your portfolio, and they are essentially more intelligent trailing stops.

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Stock State Indicator

Another element of the blind-market formula used by TradeStops is the Stock State Indicator or SSI. It helps you gauge the health of your investment.

It informs you whether a particular stock is prone to high volatility and alerts you if the stock in question recently triggered an entry or exit signal.

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The SSI has a color-coded system that makes it more intuitive to inform you whether a stock is performing well or not.

Position Size Calculator

The Position Size Calculator enables you to estimate how much of each asset you should add to your portfolio.

It takes into consideration your risk tolerance, the amount of money you have, and how the trailing stop has been set.

With those factors in consideration, it provides you with viable estimates for your buy and sell orders. It has an instruction guide that shows you how it works.

Asset Allocation Tool

An asset allocation tool is something you expect in many a portfolio tracking programs. It enables you to visualize how you have allocated your investments, categorizing them based on sectors and industries.

Asset Allocation is on the research tab of and it is designed to help you have a diverse portfolio.

The PVQ Analyzer

It categorizes the portfolio based on the risk element. It places your assets into one of the low-risk, medium-risk, and high-risk categories.

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Risk Rebalancer

The risk rebalancer tool enables you to manipulate the volatility quotient of your portfolio. It calculates how your share allocation factors into your risk management strategy.

TradeStops Review [Is This TradesSmith Tool Legit?] 31You can import data to the Risk Rebalancer in CSV format or by integrating it with your portfolio as hosted by the brokerage firm. You can also manually import the data.

Alerts

The alerts feature let you know if the price of a stock has changed. You can set alerts for different scenarios.

TradeStops Review [Is This TradesSmith Tool Legit?] 32For example, you can have an alert when VQ or the SSI of a stock changes or when specific events occur.

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When should you use TradeStops?

Although you can use TradeStops as an individual investor, I feel like it was designed for investors who actively manage one or more portfolios at a time. You get the impression that it was created for medium-term investors who want to improve their risk management.

It also helps investors coordinate their portfolio allocation strategies.

As a tool for trading, TradeStops is relatively pricey for the average trader and is, therefore, better suited to investors who have bigger portfolios.

If you are not skilled enough to formulate your own strategies, you can use it as a tool to enhance your trading experience particularly if you are into technical and fundamental analysis.

It provides you with helpful investment suggestions that minimize your burden and allow you to focus on other aspects of your trades.

If you have years or decades of experience and already know what you want from a trade, it might not be that valuable to you.

As they will tell you when you subscribe, TradeStops is often used along with Ideas, another product offered by TradeSmith. Ideas is a stock tracking tool.

When you use the integrated stock finder in Ideas, you can analyze the market and find potentially profitable stocks that you can use as your basis to create a portfolio.

You can then monitor and manage the portfolio with TradeStops. If you use TradeStops and Ideas together, they form a complete portfolio management solution.

How much does a Tradestops subscription cost?

There are four subscription plans:

Basic Plan

It is the cheapest plan because it has the fewest features. This includes core tracking features, basic risk management, and wealth creation skills.

An annual subscription plan costs $228 but you may stumble upon a discount offer that lets you pay $99 for the first year (then normal rates kick in in subsequent years).

Plus Plan

You get all the features of Basic plan along with premium alerts and access to the proprietary algorithm. This one costs $588 per year.

Premium Plan

The Premium Plan is a step above the Plus Plan. In addition to what you get with Plus, you also get essential analytics, the risk rebalancer, and portfolio VQ. The fee is $999 per year.

Lifetime Plan

It gives you access to all the services offered by TradeSmith. The annual fee is $5,000.

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Pros of TradeStops

It encourages objectivity

The investment strategy removes emotion from your investment decisions. You make decisions more objectively.

It has a diverse toolkit

It gives you access to multiple research tools and is usually perfect for multi-portfolio investors.

It is easy to use

It is an online service that you can access from anywhere and with any device as long as you have an internet connection.

It is easy to set up and allows you to follow your investment portfolios from anywhere.

It has a User-Friendly Interface

It makes analysis more intuitive if you want to actively manage your portfolio

You can synchronize it with most brokerage accounts

One of its most useful features is its ability to synchronize your portfolios with a large number of online brokerage firms that you can then follow on the TradeStops site.

Even in cases where you cannot synchronize your portfolios with your brokerage firm, you can track the status of stocks that aren’t in your portfolio

Available in different price ranges and has a satisfaction guarantee

There are multiple price tiers to pick from. It comes with a 30-day total satisfaction guarantee.

Cons of TradeStops

  • This investment strategy has its limitations. Although Keith Kaplan does his best to be objective, sometimes he gets it wrong and that can lead to you losing money.
  • The subscription fee is quite high.
  • The best features come after buying the upsells

Is TradeStops Legit?

TradeStops is a legit stock picking service.

It relies on technical indicators and proprietary algorithms that allow you to analyze stocks before you invest in them.

It has advanced alerts that rely on technical analysis to enable you to make decisions in the stock market more objectively.

What it does is quite common in the world of investments leading me to conclude that it is legit.

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TradeStops Verdict

TradeStops is a web-based stock tracking and alerting system that helps you manage your portfolio better. It enables you to compress the time-consuming process. It enables you to find the right ways to make money even when the market is volatile. It is offered by a company called TradeSmith.

It has an alert system that enables you to track your positions as long as you add them to the program. You receive notifications when there is a change to your position.

The most popular alert is the VQ alert that uses a proprietary algorithm to tune the trailing stop. There are other alerts like price targets, and entry signals, just to mention a few.

In addition to the alerts, the program offers an array of useful charts and tools to help you understand and manage your risk, position size, and other factors to make your investing experience less strenuous.

The program does not initiate trades for you, it merely alerts you and lets you decide whether you will act.

With it, you are less likely to invest in riskier stocks and more likely to go for the less-risky investments.

With that approach coupled with smart trailing stops, you improve your chances of making money irrespective of the market conditions.

Before you leave

If you’re tired of scams and want a real solution for making money online check out my no.1 recommendation.

It’s helped me earn over $300,000 in the last 12 months alone:

Go here to see my no.1 recommendation for making money online

(This is a 100% free training)

TradeStops Review [Is This TradesSmith Tool Legit?] 23