written by reader Dr. Richard Smith’s Tradestops

By redbark, November 10, 2015

Is there anyone who has got into Dr. Richard Smith’s Tradestops? Do you recommend it?

Jim Russell

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.



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8 months ago

I just joined Tradestops only to learn about SmartStops.net which seems to have a smarter trailing stop approach. So I joined them too. And when I went to cancel my $1500 subscription to Tradestops with their “30 day money back guarantee” , they are telling me they can’t! Seriously?! And that they can only issue me a credit to other services. I had to cancel my credit card to dispute this! Not good business. I checked with SmartStops and they say you can cancel at any time and do it online as well. And you’ll get a pro-rated refund if you signed up for their annual plan.

4 months ago

I bought Tradestops pro for a year starting in late 2018. I used it to identify and invest in several stock in their green zone. Unfortunately, most went red in the market drop at the end of 2018 and I didn’t know the program well enough to use it to set appropriate stops. It was helpful to teach me to use volatility to evaluate where to set stops. It recommends a 1VQ (Volatility Quotient) stop, but I prefer setting it tighter, especially for stocks with a gain. One good point they make is to reinvest in stocks with gains greater than 1 VQ which tells you to basically ride your winners.

One flaw I found was the conflict between the optimal portfolio setup based on VQ and the recommended increased additional investment recommended when a stock gain exceeds its VQ. When that stock has a high VQ it means your portfolio will necessarily take on more risk if you follow that process.

On the negative side, when buying the various stocks that were in the green zone I put too much trust in their program and did not research them as thoroughly as I should have which resulted in some questionable buys. It was a painful learning experience. Ultimately it didn’t give the performance I expected during the time I had it so I did not renew. My overall impression for Tradestops is it probably works better in an up market than one that’s trending down or sideways. I’ve had better results since cancelling by digging deeper into fundamentals like gross margins, ROIC, cash flow, etc.

The Billionaire’s portfolio sounded interesting so I took a free look, but didn’t see any value. It didn’t seem like their information was any more timely than what you could find on your own. Here’s one source that shows who bought, how much and when- https://www.gurufocus.com/stock/PLAB/guru-trades
Also, their stock picks didn’t seem that unique.

I get more value from Stock Gumshoe articles and comments. Thanks!

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1 month ago

I compared both Tradestops and Smartstops. Found SmartStops protected more of my profits. I also liked that I could have a 2-way broker integration so not only could I import my portfolio from TD Ameritrade, with SmartStops I could also easily send my stop orders across.

18 days ago

I just learned the Dr. Richard Smith left Tradestops and TradeSmith. And you can tell by their website which has removed all references to him. He’s building something new at RiskSmith but can’t really tell what it will be about yet. I’m using SmartStops.net and seems to have better algo’s the Tradestops and hear they are moving into machine learning/AI for their next round of algos.

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Travis Johnson, Stock Gumshoe
Reply to  Fred

I’ve heard good things about SmartStops as well. Since I just like using the volatility-based stops as a rough guide (an improvement over basic 20% stop losses), I don’t worry too much about the precision of the trading signals.

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