Dr. Richard Smith’s TradeStops Review – Is Dr. Smith’s Service Legit?

TradeStops has helped over 50,000 investors track more than $20 billion in assets today – including stocks and cryptocurrencies… showing them to the perfect moment to buy and sell every stock. Dr. Richard Smith is the creator of TradeStops… software that mathematically shows you the exact perfect time to buy, sell, and hold your stocks.

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TradeStops Review – How it works?

TradeStops is a web-based stock tracking and alerting program that synchronizes and tracks online portfolios to empower individual investors to enjoy managing their own investments.

TradeStops subscribers gain exclusive access to Dr. Richard Smith’s algorithms and research tools. The service gives self-directed individual investors the tools that they need to manage their risk and seek gains while making their own buy/sell decisions.

With a wide variety of automated alerts and risk-management strategies in place, emotions and guesswork are removed from the equation and replaced by mathematics. Simply put, TradeStops can help answer problems faced by investors for decades. And there is more to come…

Their most popular alert type is their VQ alert, or Volatility Quotient, that uses their proprietary algorithm to tune the trailing stop percentage to market volatility. Their other alert types include entry signals, option alerts, gain/loss alerts, and price targets.

They do not initiate any trades for you, but they will provide you with up-to-date tracking of latest close prices and will alert you when the indicator suggests action should be considered.

Added to their alerting feature, they also offer an array of useful tools and charts to help investors understand and manage their risk, position size their portfolios, and make the investing experience more enjoyable!

TradeStops does not offer investment advice or execute trades, but instead partners with noted experts such as financial newsletter publishers to further offer self-directed investors the ability to reduce risk by incorporating education into a solid investing strategy.


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TradeStops – Frequently Asked Questions

What is TradeStops?

TradeStops creates powerful, web-based investment tools that help investors make more and risk less – whether you’re a novice investor or a grizzled market veteran.

TradeStops’ Active Risk Management Engine constantly tracks and analyzes every stock in the market. Their proprietary algorithms give you insight into your investment portfolio and help you decide what to buy, when to buy, when to sell, and how much to invest. And, their alerting system let’s you know when to act.

Manage the ups and downs of the market confidently and stress-free. With TradeStops, you’ll feel informed and in control as you hit your personal investment goals and watch your profits grow.

Can I make trades on TradeStops?

TradeStops is not a trading platform, and they do not initiate any trades for you, but will provide you with up-to-date tracking of latest close prices, and will alert you when the time is right to take action.

One of the most powerful features of TradeStops is the ability to synchronize your portfolios with a large number of online brokerage firms, making it easy to follow your investment portfolios on the TradeStops site.

It’s also easy to set up and follow your investment portfolios even if you don’t synchronize them with your brokerage firm. And, you can track the status of stocks that aren’t in your portfolio as well.

Track equities, funds, indices and options in the U.S., and equities in Canada, London and Australia.

What is a Portfolio in TradeStops?

A portfolio is like an account at your broker. Your positions are in portfolios.

TradeStops offers two types of portfolios:

  • Investment. They contain positions you own.
  • Watch Only. They contain positions you don’t own. These are the ones that interest you.

You can manage Investment Portfolios in many ways.

  • Synchronized – We automatically download your positions and periodically update changes to your portfolio(s)
  • Manually – Input and track investments in TradeStops
  • Importing – Import your portfolio via a CSV file

By default, they allow you to create up to 20 portfolios.


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What are Trailing Stops?

A trailing stop is an order to buy or sell when your investment starts to go in an unfavorable way. These trailing stops will automatically change as the market changes. They are designed to help investors to see higher profits while also mitigating losses.

Let’s look at an example.

John buys 100 shares of Kim’s Doughnuts for $20 a share. To stay safe, John adds a 10% trailing stop. If the shares go 10% below $20, John’s instructs his broker to sell the shares. So, if the price of the stock fell to $18 ($20 – 10%), the shares would be sold.

Finding the perfect trailing stop depends on your risk tolerance. If you set the stop too large, you might hit a loss. If you set it too tight, you might miss a profit.

What is Volatility Quotient? Mitigate Stock Risk

Helping You Find Less Volatile Stocks

The Volatility Quotient, or VQ%, tells you how volatile a stock is – in other words, how much room you can give a stock in order to not get stopped out too early.

It tells you how much uncertainty or noise there is in your stocks. More conservative stocks like J&J have lower VQs (as of 10/15/2018 11.16%). More speculative / less certain stocks like Tesla have higher VQs (as of 10/15/2018 33.16%). The lower the VQ, the more stable the movement of that stock. Higher VQ percentages indicate the stock has historically been more volatile in its market moves over time.

What are the Stock State Indicators?

The Stock State Indicators act as a full life-cycle indicating the health of your stock. They are designed to tell you at a glance exactly where any stock stands relative to Dr. Smith’s proprietary algorithms.

These signals indicate the current health of the stock (performing well, in a period of correction, or stopped out).

The SSI will tell you one of five things:


green SSI
Indicates the stock is performing well and has not corrected below its recent high. If a stock has not yet hit this price, it appears to be on an uptrend.

yellow SSI up trend
The stock pulled back into the Yellow Zone but is still trending upwards. This indicates that the position has corrected somewhat below a recent high. It has not yet hit its stop price.

yellow SSI side trend
The stock pulled back into a Yellow Zone and is moving sideways. The position has corrected somewhat below a recent high. It has not yet hit its stop price. It isn’t trending upwards nor downwards.

yellow SSI down trend
The stock pulled back into a Yellow Zone and is trending downwards. This indicates that the position has corrected somewhat below a recent high, it has not yet hit its stop price but is moving downward.

red SSI
The stock has hit its SSI Stop Loss and is now in the Red Zone. This indicates that the stock has corrected more than its VQ% below a recent high. The stock is not behaving in a way that is usual based on its historical market trend.

The TradeStops Stock State Indicators are designed to give you a quick indicator of the currency performance trend for a given stock. Based on this indicator, you may consider whether you wish to continue to buy, hold, or sell a particular stock. TradeStops does not provide investment advice or recommendations with respect to buying, holding, or selling a particular stock, and you are solely responsible for making your own investment decisions. Investing involves substantial risk. TradeStops does not make any guarantee or other promise as to any results that may be obtained from using the SSIs.

NOTE: Momentum is a key component of TradeStops Stock State Indicator (SSI) system. The TradeStops Stock State Indicator (SSI) Entry signal is a very conservative signal. It requires a stock to have made a bounce off the bottom of at least one Volatility Quotient (VQ) percentage and the stock’s trend must be strongly positive.

How SSI Alerts Are Triggered

If the position has already moved more than its VQ% below a recent high, the SSI Stop Loss will trigger. It’s an indicator that the position has corrected more than what is normal for this stock. It means to take caution.

You may have a red SSI on stocks you have just purchased. In cases like this, you could use a  VQ alert as your Trailing Stop.

Below are the SSI icons. They give you an at-a-glance idea of where any stock stands relative to its current SSI Stop Loss, SSI Low Risk Zone, and SSI Entry Signal conditions. This will allow you to see what state your stock is in at any time and how long it has been in that state.

SSI Icons on positions

Please keep in mind that a stock needs at least 521 public trading days for an SSI to be calculated. Options do not have SSI data.

What are the differences between the SSI and the VQ Trailing Stop?

The differences between the SSI and VQ Trailing Stop is as follows:

The SSI tracks the stock’s volatility quotient from the most recently detected highest close price.

The VQ Trailing stop tracks the stock’s volatility quotient from the most recently detected highest close price on or after one’s listed entry date.

But, the SSI will not widen or lower its trailing stop loss should the volatility quotient increase over time.

The VQ Trailing Stop will widen or lower its trailing stop loss should the volatility quotient increase over time.

Bottom line, the SSI is the more comprehensive and conservative of our indicators.  Not only does it tell you at a quick glance the health of the stock, it tracks the stock’s volatility quotient from a most recently detected highest close price. It even has a re-entry feature.

So not only does the SSI warn you when it may be time to step aside, it will also alert you when a stock has triggered an entry signal.

Which exchanges do you track?

TradeStops tracks equities, funds, indices, and options in the U.S. TradeStops tracks only equities in Canada, London, Germany, and Australia.

Do you track Mutual Funds ETF’s, indices, and options?

Yes, TradeStops tracks equities, funds (including mutual funds and some ETF’s), indices, and options that are traded on the U.S Stock Exchanges. TradeStops only tracks equities traded on the Canadian, London, German, and Australian exchanges.

Do you track penny stocks and OTCs?

Yes, TradeStops does track penny stocks, OTCs, and Pink Sheets.

Do you track bonds?

No, TradeStops does not support bond tracking. TradeStops does, however, track some bond funds.

What Are the Risks?

Successful trading requires careful thought and planning along each step of the way. You should know what your overall goals are, which stocks are right for you to buy, and how much of each stock to buy.

But for too many investors, the planning process ends there… leaving them with one very important question unanswered: when to sell. Without an exit strategy in place, selling decisions are left to guesses, hunches, or emotions.


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How many times have you sold a stock too early, leaving potential gains on the table? How many times have you held on to a loser with the hopes that it would bounce back, only to watch it continue to plummet? Trailing stops are a simple – but incredibly powerful – tool that can help take the guesswork out of when to sell, giving you a solid plan for every trade.

TradeStops Real Customers Reviews

“I have TradeStops. I first signed on early this year (2015), just couldn’t get the hang of it, cancelled. Kept seeing the promos for it, so looked again, signed back up, and now I “get” it. Dr Smith has improved the interface and it flows much better. The things you can do with it are eye-opening, For example there is a position sizing tool that you fill in the basic data & how much you want to risk (losing), and it calculates the various factors that go into a stock (potentially losing money) and gives you several choices on how to get out, such at a straight trailing stop & at what % or $, or a stop based on the volatility quotient of the stock (new term for me & really cool), or a “smart trailing stop” – a bit less aggressive. The end result is that instead of putting just a straight % or $ of your overall portfolio you want to risk, you can tailor it to how much RISK you can handle. I was surprised at how over-allocated I was in terms of risk! So I am slowly rebalancing my portfolio to risk management. This is only a toe-dip in the lake on what this thing can do. Not a bad price, & there is a “pro” version for a bit more features & money. Try it, has a money back offer for trial. To Your Good Investing” – eldan

“I started with the trial membership. Suffice to say I am now a lifetime member which I can pass on to my children. It is very intuitive and user-friendly. Support is excellent with frequent software updates and improvements. A revised Risk Rebalancer tool will be introduced within the next week or so. There is a very useful series of webinars that explain every facet of the system. These are put on frequently, the most recent being earlier this week. Although, as the name suggests, one of the principle tools is the trailing stop, that barely scratches the surface as to the wealth of information available. It is truly an integrated investment system, sophisticated yet completely manageable and useful for any investor.” – 65_sohc

“I’m a lifetime subscriber and think it’s oe of the bet things in decades. I have switched my portfolio using his directions and feel much better prepared for market moves.” – Richard Coveney

“Have been a member for a year. I’m hands-on when it comes to my retirement portfolio (I am retired), but have several problem with this expensive program. 1) I like the approach using volatility to help keep me from investing too much in highly volatile or too little in low volatile investments. Volatility, albeit not perhaps calculated the same way as Tradestops is easily available on all financial sites like Ameritrade. 2) In using the rebalancer tool, the results are counterintuitive. For example, in all cases I checked this feature, it recommended huge increases in my low volume but very highly volatile positions. I would NEVER do this. Plus, with a 20 position portfolio, the rebalanced made huge changes, not tweak to my positions. So, in order to get the promised gains, I would have to make these changes which assuming I did, I would not really be able to ascertain any gains for potentially years- because I would exit many that were in the RED area, then wait years in most cases for me, in order to reenter the same position. Then and only then would I know the delta between staying in (and losing) and getting back in low. Way too complicated, and way too hard to discern the promised gains. 3) When ever dividends are reinvested, in most cases, I had to manually enter the new shares. The percent gain/loss was alway off because the base of shares and therefore total actual cost were off. Customer service in general was excellent in that i was able to talk to a real person when I had issues or lacked understanding of some aspect of the software.” – Jack

Source: stockgumshoe.com

TradeStops Essentials: How do I navigate the site?

Once you log into TradeStops, look at the top part of the screen. There will be a black bar running across the top of your screen.

It has several tabs including Welcome, Positions & Alerts, Portfolios, Research, and Newsletters.

TradeStops menu

Your active tab will have a gray box around it.

Let’s talk about the Welcome Tab

The Welcome Tab contains your Dashboard.

On this dashboard, you can see:

  • Your portfolio’s performance
  • Your recently triggered alerts
  • Your top winning and losing stocks
  • The most recent editorial or educational research
  • Some quick links

The portfolio performance area is an interactive chart. In the top-left of this chart, you can click the drop-down box to select the portfolio you’d like to view. Below that, you can click to select the indices that you’d like to compare your portfolio to.


upper-left of dashboard to select portfolio and indices
In the screenshot above, note we have selected “All Investment.” This means we’re viewing all the investment portfolios that we have.

The recently triggered alerts to the right of the interactive chart are very informative! They know that you likely receive many, many emails throughout the day; it’s easy to miss an alert from TradeStops on one of your investments. So, they’re making it easy for you to check for alerts you may have missed.


triggered alert example
They’ll show you the ticker, the state it’s in, the alert that it triggered, and the portfolio it’s located in.

Below this area, you will find your top five winning and losing stocks. This area is a fantastic resource for knowing which investments are performing best for you and which are draining your profits.

Just click the tabs up top to switch between your winners and losers.

To the right of this, you will find TradeStops most recent blog post. This will update frequently as new editorial and educational material is published.

At the very bottom of the page, you will find quick links for:

  • Creating portfolios
  • Adding positions and alerts
  • Exploring tools
  • Customizing your TradeStops experience with Program Settings

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How do I know if something is new in TradeStops?

They will notify you of any changes within the program.

Look in the upper right corner of your program to see your name. To the left of your name there is a little megaphone. It might look like a triangle or piece of cheese or something similar to you.

tradestops notification

If the megaphone has a number, it means there has been an update. Simply click the megaphone to read about the latest update.

What can I do with the Positions & Alerts tab?

This is where your positions and alerts live. There are a few different ways to organize this data.

In the upper left corner, under the TradeStops logo, there is a drop-down box. This box has all your portfolios. If you click the box, you can view your portfolios. Simply click a portfolio title to look at the positions in that portfolio.

portfolio drop-down

Note that All will show all of your positions in all of your portfolios. All Investment will show all of the positions that you have money in (own). All Watch will show all the positions that you are watching (interested in but don’t own).

Now that you selected a portfolio, let’s look at your positions.

The Positions & Alerts section is broken into 3 sections. Your active section will have a blue line under it. In the photo below, Positions (1) is the active section.

position tabs

  • Positions (1) show you your open positions. These are the ones that you own or the ones that you are actively watching.
  • Alerts (2) show you the active alerts that you have set for your open positions.
  • Closed Positions (3) show you the positions that you have closed and no longer own.

What are the red triangles on the Positions section?

Sometimes, you might see red triangles on your positions.

positions with errors

This happens when there is missing information, if TradeStops doesn’t detect the position at your broker, or if there are any other errors. To review the error, just click on the red triangle. It will tell you what to do to fix the problem.

Why do I see a bunch of the same position?

If you are on the Alerts tab, you might notice that there are copies of some of your positions. This happens when you have multiple alerts set up on a single position.

alert descriptions

Look at the photo above for ACD-L. It is listed 3 times on the Alerts tab. BUT, it has 3 different alert descriptions. This means there are 3 alerts for ACD-L.

How can I view portfolios?

The portfolios tab is where you find all your portfolios – both Investment and Watch Only. To switch between these sections, click on Investment or Watch Only toward the top left on the Portfolios tab.

portfolio tabs

Remember, Investment portfolios have positions that you own. Watch Only portfolios have positions that interest you that you do not own.

Where are the Research Tools?

You can access them from the Research tab in TradeStops. After you click Research, just click on the tool that interests you.

TradeStops research tools can help you further manage your investments.

  • The Pure Quant Portfolio Builder puts Dr. Smith’s most powerful, proprietary quantitative algorithms to work to help you create a fully optimized, risk-balanced or low risk portfolio in just a few clicks.
  • Asset Allocation can help you check your portfolio’s diversification
  • PVQ Analyzer can help you check your portfolio’s overall risk
  • Risk Rebalancer can help you take equal risk per position

research tools

Remember, the active tool that you are working with will have a blue line under it.

If you want to learn more about the Research tools, visit the Knowledge Base, and read some of the articles. They can really help you.

Where are the Newsletters?

TradeStops can plug into some of the newsletters that you subscribe to. Just click Newsletters in the menu, and then select your publisher.

tradestops newsletters

Now that you selected your publisher, the list with all the stocks will appear.

newsletter recommendations

(Note: we need to blur the positions)

The list of subscriptions is on the left side of the screen. Just click one of the subscriptions to view that list.

On the right side of the screen, you will see the SSI and VQ for these positions.

You can add these positions and portfolios to your TradeStops program. To add a single position, click on the little plus icon to the left of the ticker symbol.

add a single position

Then, just follow the prompts that appear on the screen.

To add an entire portfolio, click the green Add as Watch Portfolio button.

add a portfolio

The portfolio will then be added to the Watch Only portfolio section on the Portfolios tab.


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Who is Dr. Richard Smith – the man behind TradeStops?

Dr. Richard Smith, the founder and CEO of TradeStops, earned a PhD in Math and Systems Science. Even he had to learn the hard way that it takes more than intelligence to win in the game of investing.

He has spent the last 10 years researching and developing algorithms and services that give individual investors the tools they need to have a systematic approach to investing!

With his background in mathematical theories of uncertainty combined with his own investing and trading experience, Dr. Smith understands risk management and how to use it as a self-directed investor to master the market.

Dr. Smith is often requested to speak to groups, and he enjoys opportunities to share his knowledge to help others gain an edge in the market.

His ideas are supported through back testing and analysis of his own account along with the portfolios of some of the world’s most successful investors.

Dr. Smith believes in the power of the individual investor, and he welcomes you to join him.

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