Frequently Asked Questions
Everything you need to know about Tradespoon

Tradespoon is an affordable, user friendly Trade Intelligence Platform designed by trading system expert Vlad Karpel. Our platform uses quant science to make it easy for every self directed investor—whether novice or experienced—to find and manage high quality, high return trade opportunities typically reserved for the elite.

Our software—honed over 15 years for unmatched predictive precision—leverages predictive analytics and hyper-fast data processing speed to find relevant patterns in voluminous stock data, winnowing out the trade ideas with the highest potential for profit; our expert analysts corroborate these ideas with technical and fundamental research. The result: an invaluable set of tools that, with a few clicks, helps you swiftly determine exactly what to trade, how and when, putting profits in reach.

The platform includes tools for generating custom trade ideas; fundamental and technical research for each stock; charts and graphs depicting the historical performance of each stock to help and forecast future performance; an ever-changing list of the most overperforming/underperforming (bullish/bearish) stocks (according to our algorithms); tools for portfolio management, analysis and rebalancing; a virtual trading platform to practice trading the ideas you generate; and educational training videos/webinars to enhance your trading skills. Additionally, subscribers receive expert alerts advising you of our highest quality trade opportunities, when our stringent criteria are met.

Tradespoon makes sense for a wide range of traders with various levels of sophistication. Our customers range from sophisticated traders who trade for a living to newer traders who are learning about trading. All can benefit from the positive predictive potential of the Tradespoon platform.

There is no solution on the market for retail investors that offers the depth of predictive precision that the Tradespoon platform provides. This is due to the sophistication of the platform's underlying algorithm, built by Tradespoon founder Vlad Karpel, which takes into account options volatility, statistical correlations with indexes and proprietary technical and fundamental analysis conducted in real time, among other factors.

Tradespoon is a great for beginner traders. If you are a beginner, you can practice placing trades by using the Tradespoon virtual trading tool, on which you do not use actual money. You also may feel most comfortable initially placing "long" trades picks (which begin by buying a stock) rather than "short" trades (which begin by selling a stock).

Tradespoon recommends holding stocks until the target gain or target loss limits are reached. We recommend that you enter into target limit and stop loss orders when you enter your positions. However, when to place trades ultimately depends on you and your risk tolerance.

No. The Tradespoon platform helps generate trade ideas that can be used to make stock and option trades. However, Tradespoon provides absolutely no guarantees on stock or option performance. You use our platform at your own risk. When to place trades and enter and exit positions is entirely up to you.

As a special bonus, we'll periodically alert subscribers about our highest quality trade picks, based on market conditions and our stringent criteria, including price momentum, recent news, price and fundamentals. The alert may consist of one or more of the following:

  • A stock trade recommendation
  • An option trade recommendation, which may be based upon the same underlying stock (to minimize cash outlay)
  • An option spread trade recommendation — two options, each with different strike prices but the same target gain and stop loss recommendations, based upon the same underlying stock (to mitigate risk)

A spread position means that you buy and sell an equal number of options of the same underlying stock but with different strike prices or expiration dates.

Each recommendation includes a direction (long or short), with exact entry and exit prices.

When you receive an alert...

1. Consider trading a pick as long as the market price is not higher than

  • 1-2% from Tradespoon's recommended entry price (for stock picks)
  • 5% from Tradespoon's recommended entry price (for option and option spread picks)

Options also include an expiration date, after which they cannot be traded.

2. Determine the volume of shares you wish to trade

  • If you are new to trading, we suggest allocating 3% of your portfolio to each recommendation and holding no more than 4-6 positions at a time

3. Trade the pick(s) on the online trading platform of your choice and, to limit risk,

  • Enter a limit order for the target profit recommendation included in the Tradespoon alert
  • Enter a stop order target loss recommendation included in the Tradespoon alert

Not necessarily. Tradespoon is not a portfolio construction service, but rather an idea generation platform. You should seek advice from registered wealth managers to determine how to best construct a portfolio that meets your investment objectives.

Owners of smaller portfolios may want to consider hedging your portfolio to make sure that when the market is in correction you do not lose a significant amount of your portfolio. One way to accomplish this is to only trade bullish stocks that, according to the Tradespoon Scoop, our list of most overperforming/underperforming (bullish/bearish) stocks, have a Tradespoon bull market value/momentum rating of "8" or "9" and bearish stocks that have a bear market value/momentum rating of "2" or "3." We suggest that, when in the bull market, you execute one sell recommendation for every 2 buy recommendations.

Tradespoon recommends that you have an equal number of bullish and bearish positions—meaning an equal amount of long and short positions. We also recommend having approximately 4 to 6 stock positions open to spread your risk. Above all, we always recommend that you only participate in the picks that are aligned with trades you feel comfortable making.

Our performance page is updated when our options spread position for any given expert pick expires. We are using options spread strategy to determine target gain or stop loss. Stock pick returns are updated at the same time as when our options spread position has reached its target gain or stop loss level.

Your satisfaction with the Tradespoon platform is 100% guaranteed. If you're not happy with your subscription for any reason, just cancel within the first 30 days and receive a full refund. No questions asked.

Tradespoon's research reports describe our proprietary model for stock analysis. These reports have a long term view of the stock covered and are not affected by a single earnings announcement.

On any day on which we provide an Expert Tradespoon pick, all technical analysis and fundamental analysis that factor into the Tradespoon trading decision is up to date on the day of the pick. However, it does take us between 1 and 2 weeks after the expert pick is released to update the Tradespoon proprietary research report covering our analysis for that particular stock. Building our model for intrinsic stock value takes longer and does not change on monthly basis.

For winners our main criteria is rapid movement of stock to the upside, 3-5% in one to two weeks time.

On downside, we use our models which you can now see in focus list if you hover over short term trend. If the models scoring change to downside we exit the trade and try to limit losses to 50% or less.

If models still point to the upside, we either roll the position to next month or wait 5-10 days until expiration to close the position.

The short term trend consists of 2 different quant models that run independently for 20,30 ,40 and 50 days forecast.

The information you see is output generated by predictive models that forecasts the stock price movement For 20 ,30,40 and 50 days from now.

The probability and accuracy shows how accurate the model makes price predictions based on historical backtest analysis.

Only if all models show same price trend do we add the stock to the Bulls or Bears convictions lists.

We recommend to get into a position if there is at least 30-40 days left until expiration.

We would allow 10% slippage on our trade recommendations. For example, on a $2.00 spread, we would allow $0.20 slippage.

The most important criteria is cash. If you are not overleveraged, you can allow slippage. If you do not have 20% in cash, avoid slippage and wait for the trade to come to you, especially in a volatile market

Tradespoon tools predict prices for stocks and ETFs for the next 50 days using learning algorithms as part of artificial intelligence. We show you if stock will be higher or lower by a certain date.

Broker dealers can not show you this information because they are regulated and one can interpret this information as advice, which broker dealers cannot legally provide.

This is why you will never see a scanner on a registered/regulated entity that will predict prices by a certain date.

"Accuracy" data on short term trend shows results of backtests using the model that predicted the stock price based on the time range.

The higher the accuracy, the higher percent of the time predictive model made accurate predictions based on the historical data.

Rules for hedging your positions:

1. 15-20% of your exposure to the market should be in a hedge.

This is the most important rule. Tradespoon does not know how much exposure you have in the market nor do we know how many open positions you have at the same time.

Our daily videos for each pick explain how to look at the position's delta value and based on that amount, we enter a VIX hedge (Recommend bearish positions or sell out of the money call spread against our long positions)

2. We provide members with specific entry and exit prices for both short positions and hedges. We also record daily videos with entry and exit prices for the hedges.

Each of our trade recommendations include a target gain and a stop loss. However, in many cases we do not wait for these values to hit, nor do we wait for expiration. We close our recommendations 10-20 days prior to options expiration. We also close our trades if the stock moves 2-5% in our favor in a short period of time. When we close the position for these reasons, we denote it with "Adjusted Target Gain".

Seasonal Charts data gets refreshed on Sunday evenings since these are long term predictions.

Stock Forecast Toolbox data gets refreshed at midnight Central Time each day since these are short term predictions.

When the market is volatile, you may see some positions down 1-3%

As positions move 2-3% in our direction, we typically close them for a profit.

You can see our actual CLOSED trades on the performance page, and as long as the number of CLOSED losing trades is less than then number of CLOSED winning trades, you can consistently grow your portfolio balance.

Historically, we average two winning recommendations for each losing recommendation.

These tools use different algorithms in their calculations. The Seasonal Charts tool is created to have the highest probability of success for 40-75 days predictiosn, while the Stock Forecast Tool is designed to predict short term support and resistance for the next 1-10 days. Since these are two independent modules, they will sometimes show different results.

We update the 10 days predictions and seasonal charts data based on end of day prices only. While market is open, the predictions do not change.

Company screener shows you annual return of the S&P 500 stocks if you used every buy and sell signal you saw on the 10 day forecast for the past 12 months. This is a hypothetical return based on the backtest we perform on a weekly basis. 6 month predictions show you the trend for the next 6 months irrespective of the buy or sell signals.

So, sometimes returns on the company screener do not correspond to the 6 month predictions. They are derived using different models and are intended to show different information.

The process you should be the following: Use the company screener to find stocks in an uptrend and are highly predictable based on annual return. Then, use the 10 day predictions to see when to enter trades based on the current 10 day trend and NOT annual return shown on company screener. 6 month predictions will show you the long term trend in case you hold your position for a long period of time.

10 day predictions on the Stock Forecast Tool and Seasonal Charts are based on daily prices and reflect changes based on the past 200 days.

Hourly predictions are based on 5 minutes bars over the past 5 days.

Hence, long term and short term trends can be different just like on daily and 5 minutes charts.

Also, 6 month predictions are based on monthly data and are updated on the first of every month.

The Stock Forecast Toolbox is a great indicator for current trend and for turning points in the market. When the market switches direction from an oversold market to an overbought market and vice versa (usually daily change greater than 1%), in a couple of days, the model will reflect current market conditions.

Most of the time market follows our predicted range. When the market or individual stocks close outside of our predicted daily range, it usually indicates that the market is about to reverse current direction.

How long your position is held, and how much gain you are looking for, depends on your trading plan. Our Live Trading Room and Expert Picks have different holding time and investment amounts.

In our Live Trading Room, I will hold positions until market close or for a couple of days.

I look for 0.5-1% gain using stocks, and 10-20% gain for options. Some signals will show an expected magnitude of move over 2-4% for stocks. This can translate to 20-50% return using options.

With our Expert Picks, I hold positions for 20-30 days and look for a 20-40% target gain when using options.

Our Active Trader product is intended for short term trading- intra-day or holding for couple of days.

I would also encourage you to watch recordings of our weekly Strategy Roundtable for more details.

http://www.tradespoon.com/members/workshop-recordings-all.php