Friday Editorial Year in Review

By: TradeSmith Research Team

Dec 29, 2017 | Investing Strategies

2017 was a landmark year for TradeStops members in more ways than one. Of course, we’re proud that we’ve helped tens of thousands of investors stay long this incredible bull market.

We’re also proud of the great investment ideas and strategies we’ve offered free in these editorials over the course of 2017. Today and next Friday we’ll be reviewing some of what we think was our best work of 2017 in the hopes of teeing you up for an even better 2018!

In our Tuesday editorials we highlight the tools and strategies that make TradeStops so unique. Today we’ll take a look back at what we feel were our best Tuesday editorials of 2017.

In February, we showed you how you can “be like Buffett” by putting yourself in a position to be patient and confident and keeping fees low.

Our simple SSI system on Buffett’s favorite index fund, VFIAX, beat buy and hold and, we believe, would have impressed Buffett by outperforming such a broad index “ and doing so with less risk.

Vanguard S&P fund outperformed using SSI signals

In April, we changed the investment landscape for thousands of investors when we introduced the Billionaires Club in TradeStops.

Billionaire’s Club added to Newsletter Center

In the Billionaires Club, our Lifetime members are able to see investments made by 15 successful billionaire investors including Buffett, Einhorn, and Icahn. The investments are updated on a quarterly basis, as soon as their SEC filings have been made.

See investments made by 15 different billionaires in Billionaire’s Club

Not only can you see their investments, but you can see the TradeStops VQ and SSI status all on one page.

SSI and VQ shows in Billionaire’s Club also

In May, we introduced one of the most powerful tools available for individual investors. The Pure Quant Portfolio Builder takes the rules I developed for building successful portfolios and integrates them into a single tool. All you do is input billionaires’ portfolios, newsletter portfolios, or your own watch lists and we do the rest.

Pure Quant added in May
The rules are very simple and easy to follow:

  1. Stay out of the SSI Red Zone
  2. Invest in stocks that have most recently entered the SSI Green Zone
  3. Keep average VQ below 40%
  4. Only buy if trade is positive at time of entry
  5. Maximum number of positions is 25
  6. Minimum number of positions is 10
  7. Keep portfolio risk-balanced at each step
  8. Replace the stopped-out position with the next buy

In June, we showed you how to be the “third man” and beat the billionaires at their own game. Richard Wyckoff, one of the pioneers of cognitive biases in the stock market had this famous quote:

Three men came to Wall Street. The first always knew what was the best buy. The second knew why it was the best to buy. But the third knew neither of these things; he only knew when to buy. He made the most money.

The TradeStops signals allow you to be the “third man.” You know the best time to buy and the best time to sell. Using the signals, and the rules listed above, would have allowed you to greatly outperform the S&P 500 and the billionaires themselves.

Knowing best time to buy or sell outperforms billionaires and S&P 500

In August, we showed you the gains the billionaires could have achieved if they had been using the TradeStops SSI signals to manage their investments. TradeStops could have improved their performance by an average of 47%.

Comparison of Billionaire’s gains vs using SSI signals – TradeStops could’ve improved performance by 47%]

In November, we revealed how using TradeStops in your retirement plan could have made you more money and, at the same time, lowered the amount of risk you took.

Here are the results of investing $1,000 each month into the S&P 500. Using the SSI signals and avoiding huge losses would have resulted in an almost extra $100,000 at retirement.

Dollar Cost Averaging using TradeStops signals

Investing using the SSI signals would not only have made you more money, but would have done so with less risk. Here are the risk-adjusted returns of the same two strategies.

Risk adjusted returns with TradeStops signals

Next week, we’ll show you some of the investment ideas we shared with you in our Friday editorials from 2017. We’re still putting the numbers together, but here’s a quick preview… If we were an investment newsletter, our percentage of winning trades would have been 82.5%!

We had a great 2017 and are looking forward to bringing you new tools and successful investment ideas in 2018. We’re already beginning 2018 with the introduction of the world’s only tools to track and trade cryptocurrencies based on signals, not noise. You can find out more information and consider joining our exclusive charter membership here.

The team at TradeStops joins me in sending you best wishes for a happy, healthy, and prosperous New Year!

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