Stock Assault 2.0 Trading
I thought I would write a couple posts on the stock trading System called Stock Assault 2.0.
I came across this product because I had a friend that knows I follow the market and asked me to take a look at since they were advertising like 1300 % returns annually. My first thought is give me a break, sounds like a scam.
1300% a year ? I didn’t think people could make claims like this anymore with all the financial regulation out there. I searched around for any reviews or results about it and there were only a couple junky sites claiming the product is great (along with the other products they recommend) but the didn’t seem to actually use Stock Assault or trade in real life.
There was one other site that tried to track their results after using it but they started adding in their own indicators and swayed from the program….and just kind of stopped reporting results, so I thought I would offer a candid review for anyone that is looking at this product.
To make a long story short the total cost for it is $50, so I threw $50 at it for the heck of it(they have a 30day refund) and set up a simulation tracking account for $30,000 that I would use for the program to try it out if I decide to use a real account. Before I go into my results to date (for my simulation account) let me share my experiences on the product:
- The 1300% stated returns assumes you take every single trader mentioned and that is practically impossible because there aren’t enough sell signals on stocks you buy to raise capital to buy the new picks.You just can’t keep buying every stock every day unless maybe you have a huge account or buy tiny positions, so I don’t see how anyone would have replicated the results claimed.
- When you buy the product it supposedly connects with their server to link with the database of all listed stocks from the date you downloaded the software and I guess its starting to track trading ranges in order to calculate overbought/oversold lists of stocks, so for the 30day money back guarantee about 1/2 of that is eaten up while you wait for the system to generate its first buy signals. You won’t get any buy signals for the first 1.5weeks.
- Every person that runs the product is getting different picks because it is based on the trading range created from the date you bought the product which created the buys lists uniquely for each person running the system. You will see all kinds of stock on the sell list each day that were never on your buy list so you just ignore those.
- You usually will get the day’s buys and sells in the morning before the open. You really should make the trades at the open because the systems looks to make it’s picks based on oversold indicators which if the stock acts correctly should more up the next day and many of those oversold stocks are usually best bought at next day open. Otherwise you are changing from the programs strategy if you start arbitrarily buying during the market hours. Honestly, I would just do market at the open orders because all the stocks usually are liquid enough(trade enough volume) to get filled at reasonable price vs. you might miss alot of stock with a limit order if they gap up since they were oversold and might never hit your buy limit if it opens above the prior day close.
- The system says it uses “Artificial Intelligence”. Gimme a break. No trading system means much to me unless it has been tested in up and DOWN markets and non-trending markets. I have only used the system for 6weeks which allowed me to follow it thru the fast move up in end of Dec 2009 and breakdown in Jan 2010. There will always be lots of products touting huge results after a long market when you couldn’t go wrong so I am curious to see what happens if the market makes a consistent downturn rather than a couple day pullback.
- Essentially Stock Assault’s picks seems to be generated based on oversold measures but for a chart reader it doesn’t seem to have much for “Artificial Intelligence” because it picks some ugly charts that any chart reader would be able to see had a much higher chance of failing vs. bouncing despite oversold indicators so I think it helps to use a few basic parameters on a chart when deciding which stock to buy each day and I even sold some before the program indicated to based on what I know, but I try not to change too much from the program so I could really see the results.
- Many of the trades seem to have sell signals issued on 3-4% returns which isn’t bad for 2-3day trades but you need to be hitting a decent win/loss percentage to keep the losers from taking away from your winners too much because usually you let your winner run which if traded correctly will more than offset small losses., but when you are limiting your winners returns you have to be very disciplined with cutting losers fast. Stock assault seems to do OK with that.
- I think they offer an extra service called Sidekick where can use their AI program to screen and charts and be more selective on results but I will in a future post just tell you how to screen through their buy sell list each day so you don’t buy some of the garbage picks I notice.
I’ll go through my results and recommendations on how to use the product in a future post as this is getting long. I don’t want you to feel like I am teasing you though by not giving any results so quickly since December 15,2009 after 6weeks I am right at flat $30,000 in my simulation account including commissions and entering in very conservative executions for every trade (i’ll explain that later)…….vs. the market is right at around flat also so it is a wash. I’ll go into more detail on a future post. Just email me if you have questions.
Here is link to the 2nd part of my Stock Assault Review