For each equity covered, we publish both an Aggressive and a Conservative SmartStops. Why two different sets? Because there are those investors who are more long-term with their time horizons and just don’t want to trade as much. Then there are others who are happy to make a few more trades (but not excessive) in order to take advantage of the opportunities that presents. So we designed an approach for both sets. So what’s the difference in these two types?
1) Aggressive SmartStops – are built to provide maximum downside protection and typically lie closer to the equity price.
2) Conservative SmartStops – are built to be farther away from the price action (though they too adjust intelligently both up & down), that will result in fewer trades and a lower probability of whipsaw as well. However the tradeoff with that is that they also give back more in profits. However if you are use to Buy & Holding, moving to a Conservative approach where you might only trade 1 or 2 more times a year, will far outweigh the costs of entering into a Buy, Hold & Pray (hoping for price to recover) mentality. There is an opportunity cost in waiting and waiting and waiting for a price to recover. That’s why we highlight that data on our risk analysis page. And even if you think to yourself …“I don’t mind holding as I’m getting a dividend for this stock or etf…” you might want to reconsider that thought process after reading this article.
Both signal families intelligently adjust in an effort to keep you in an uptrend longer while exiting early in a down trend.
On our alerts, we highlight whether we are sending you an Aggressive or Conservative Risk Alert, but the dots underneath the chart that we send along as well, will show you both. Below for example, you can see the Yellow dots which represent the daily Conservative SmartStops price point is farther away from the price action of the blue dot, the Aggressive SmartStop. And you can see that the Alert sent is showing that the Aggressive SmartStops was triggered on this day of 7/17/20. However, the Conservative SmartStop may not have (and did not in this example). So also our daily risk report will summarize for you for each signal, what state the Aggressive is in as compared to the Conservative.