Tradespoon Review – Do Predictive Analytics Work?

An Introduction to Tradespoon

Tradespoon.com is a stock market research platform that uses predictive analytics and sophisticated algorithms that provide options trade ideas along with tools to manage them. The service centers around empowering self-directed traders and investors to make better trading decisions through education and implementing the analytical tools on the platform. Integrating neural network-based artificial intelligence technology with adaptive harmonics, stat spectral analysis and digital filtration components, Tradespoon rigorously scans over 3,000 stocks updating its rankings, which are then filtered by a team of professionals to further refine the candidates for recommendation.  The result is a flexible high-performance platform that handles most of the legwork in screening, identifying and selecting high probability candidates ripe to trade.

Tradespoon was created by Vlad Karpel, former vice president and head of technology at OptionsXpress (before they were acquired by Charles Schwab). Karpel used his technical and retail-oriented background to create and refine the core algorithm for Tradespoon, centered around value investing, portfolio and trade management and the proper education of the individual investor.

Styles of Trading

Tradespoon balances quantitative data-driven fundamentals (similar to Motley Fool) with technical analysis triggers catering to self-directed investors, intra-day and swing traders. Value investing is the core theme for stock selection and idea generation. Users can adopt the idea and implement a scalping, swing trading or investing style as they get more acclimated.   

Strategies

The software enables a multitude of strategies ranging from momentum and volatility-based to theta-decay to trading earnings reports. Stock and options picks implement trending patterns, reversions, reversals, breakouts and breakdowns. There are targets, two-entries and trailing stops included with recommendations. The two-entry method spreads out the risk. Mechanically implementing the trades by placing limit orders at the first entry price on half-size allocation. When it fills, then place the limit sell at target price and place the second entry limit order for the other half of the position. Stop-loss limits should also be placed.

Set-ups

Intelligent platform tools like Tradespoon Bulls/Bears and Seasonal Charts paint the landscape of the markets moving forwards using predictive analytics to forecast S&P 500 trajectories for the coming week and quantitative analytics to sort and rank stocks. The Probability calculator helps define the odds of a selected stock to trade near certain price targets.

Timeframes

Tradespoon accommodates all time frames from short-term (intra-day) to long-term (portfolio investing) and provides guides to educate users on best practices for each. Additional services are available to further accommodate each timeframe-centric temperance and trading style.

Portfolio Management and Optimization Tools

Users can conduct their own portfolio rebalancing. This unique tool uses rebalancing algorithms to optimize your portfolio allocations with the Markowitz mean-variance method. User defines the frequency. Back-testing portfolio allocation, optimizing exposure to various macro sectors and benchmarking against leading U.S. indices are some of the key features. Charting and visualization available via MS Excel export.

Chatroom

Tradespoon provides a live trading room for its premium subscribers where Vlad trades his own funds using the Tradespoon tools.   

Auto-Trade Integration

Users can set-up an account at TradingBlock to automatically or manually execute trade recommendations.

Trading Courses

Tradespoon offers a free downloadable trading guide starting with Tradespoon 101, Advanced Options Strategies, Technical Analysis and Developing a Trading Plan. which covers a ton of topics Free videos are provided as well. This alone is very comprehensive and covers specific topics from intro to options to butterflies and calendar spreads.

Subscribers have access to the Video Training Vault, a comprehensive library of educational videos, tutorials and webinars. It’s safe to say, there is enough content here to appease all skill levels from newbies to seasoned traders. As with most resources, the initiative must be taken by the user to make the effort to learn. If the will is there, then the education and training content is bountiful. Training webinars are scheduled weekly covering technical and fundamental stock analysis and options trading.

What Type of Trader is Tradespoon Best For?

Tradespoon accommodates traders off all levels from beginners to seasoned pros. The intelligent platform software provides tons of ideas backed by quant metrics. There are plenty of tutorials and videos to get newbies acclimated quickly. The term self-directed really applies here as it boils down to how badly the user wants to learn to use the platform to make profits. From long-term investors to intra-day traders, Tradespoon accommodates everyone.

Is Tradespoon a Good Value?

Yes. Tradespoon is a good value for self-direct traders and investors who seek a bountiful source of fresh trading ideas complete with execution instructions. Tradespoon has four types of memberships. The free registration provides access educational videos and weekly seminars.

Stock Forecast toolbox enables users to forecast stock and ETF prices. It also includes the ActiveTrader service. This costs $697-per year or $127-per month.

Tools membership includes Stock Forecast and all Tradespoon tools for $997-per year or $147-per month.

Premium membership includes everything including Stock Forecast Toolbox, Tools, Live Chatroom, Premium Member Stocks and Options Picks and evening videos and SMS alerts. This costs $1,497-per year or $197-per month.

ActiveTrader Service

The ActiveTrader service gives access to the most current top three bullish and bearish stocks and options to trade along with Target, Stop-Loss, Entry 1 and Entry 2 each evening. All prior updates and stock information since inception is accessible for members. These picks are meant for intra-day and short-term trading. The service is $97-per month.

ActiveInvestor Service

The ActiveInvestor Service selects weekly recommendations of the top three bullish and bearish stocks and options. The average holding time ranges from five-to-20-days. Each pick comes with the Target, Entry 1 and Entry 2 and Stop Loss price level. This service is $127-per month.

Pros   

• Robust intelligent stock and options picks using predictive analytic engines
• Comprehensive educational content of tutorials, webinars and videos for trade selection and management of stocks and options
• Strong forecasting tools for both macro and micro market insights
• Unique portfolio re-balancing tools further enhanced with options
• Auto-trade executions available on recommendations
• Free seven-day trial to kick the tires and 30-day money back guarantees

Cons

• Pricing plans can be confusing especially with ActiveTrader/Investor services costing more separately than bundled
• Sheer volume of features and content can be overwhelming at first