Essentially, the asset allocation tool allows traders to see how their holdings are divided into different market industries and sectors. The asset allocation tool is hardly unique to TradeStops, but it is helpful to have it included alongside TradeStops’ other portfolio analysis tools. Helpfully, TradeStops also explains the results of the calculator in plain English, making it easier to understand how it got to the results it did and how changing the parameters will affect the result. The result shown is the maximum investible amount and initial stop loss value that equates to those parameters. The calculator asks traders how much money they are willing to lose on a given trade and offers several options for calculating where a trailing stop should be placed. The position size calculator uses VQ, trailing stop calculations, and traders’ appetite for risk to determine the appropriate amount to buy of any stock. VQ and SSI are automatically calculated for all stocks in portfolios monitored by TradeStops and form the basis of the platform’s more advanced risk management features. The SSI is a green-yellow-red indicator that calls attention to whether a stock has experienced high volatility and whether it has recently triggered an entry or exit signal. The VQ assigns a percentage value to the volatility of a particular stock, which can then be used both to determine how far below the current price a trailing stop loss must be set in order to not stop out prematurely and to identify the maximum potential loss on a stock when using trailing stops. TradeStops is designed to calculate the risk presented by each of the stocks in a portfolio, and it does this using the volatility quotient (VQ) and stock state indicator (SSI). TradeStops Features Volatility Quotient and Stock State Indicator TradeStops costs $79 per month after an initial 30-day trial period, while Ideas costs $99 per month after an initial 30-day trial period. TradeStops and Ideas are sold as separate products, and there is unfortunately no option to purchase both at a discounted rate. Ideas works as a complementary platform by helping traders design a portfolio based on different investing strategies and the stocks that that world-renowned investors are holding in their own portfolios. TradeStops focuses on calculating the risk associated with stocks based on their historic volatility and balancing portfolios based on this risk. These products are designed for medium- to long-term investors who want to actively manage a healthy portfolio of stocks. Richard Smith, a mathematician, and investor. TradeStops and Ideas by TradeSmith are two separate but related products offered by Dr. Introduction To TradeStops and Ideas by TradeSmith What Type of Trader are TradeStops and Ideas Best For?.Customization, Layout, and Compatible Brokerages.Introduction To TradeStops and Ideas by TradeSmith.
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