Risk Alerts

Risk Alerts

Many sports fans know that all too often franchises hold on to popular players, even when their investments don't have the value they once did. But, how frequently does this strategy work out? As an investor, you may fall into this same trap, becoming attached to your equities to the point that you are prevented from taking timely actions to seek more favorable risk/rewards opportunities. 

With SmartStops, you can secure a revolutionary, unbiased resource that makes it easy for you to know when your equities - be they stocks or exchange-traded funds (ETFs) - need attention. When your equities experience elevated risk, our Risk Alerts help you take control by alerting you in an email, so you can determine how best to react. Under normal risk conditions, you'll still be kept up to speed, receiving an email at the end of each market day that allows you to prepare for the next market session and make informed decisions when risk is on the rise. 

By managing your risk with our analytics, you can quickly adapt to the current market. For example, our 10-year S&P risk analysis shows that when investors don't respond to risk, as with a buy-and-hold strategy, they put themselves at a significant risk for maximum drawdowns on average of about 61.67 percent. By comparison, those who were using aggressive SmartStops and conservative SmartStops experienced only 23.9 percent and 35.59 percent maximum drawdowns, respectively. 

Our service enables you to be ready to sell when risk is on the rise, even when you don't have time to watch the market. The SmartStops risk optimization engine calculates updated SmartStops at the end of each market day using sophisticated algorithms that take into account proven factors such as historical trends, optimal exit methodology and an individual equity's price volatility. If any of your covered positions falls and triggers a risk alert, an email is sent enabling you to take timely action.

What is a SmartStops Risk Alert? 

At SmartStops, investors can save stocks and ETFs into a portfolio where these equities will be monitored for signs of elevated risk. With the service, you'll receive email alerts when the price of an equity falls and hits a SmartStop, an indication of elevated risk, allowing you to review the position and take timely action to effectively manage your risk. 

At the end of each market day, an end-of-day report is sent listing your positions, current risk states, recent alert activity and updated SmartStop prices for use the following market day. You can be proactive, and use the SmartStops prices to set and maintain stop loss orders, or be reactive and use the risk alerts as a catalyst to review a position and take action. SmartStops provides two signal families with the conservative signals allowing for a bit more price movement than the tight aggressive signals. Both signal families are designed to back off and provide room to run during an uptrend and to tighten to get you out early in a downtrend.

The SmartStops portfolio protection service frees you up from wondering what the optimal protective exit price for a particular equity should be and from the need to continuously be watching the market.

What do I do when I receive a SmartStops Risk Alert?
We don't always have time to be watching our investments. Lucky for us, SmartStops is watching them for us. If you receive a risk alert on one of your equities, today is the day to look at that one.
� Read the news
� Review the technicals and fundamentals
� Talk to friends, colleagues or your financial advisor
� Take action!

Selling, hedging, buying on a pull back or standing pat are all legitimate outcomes of your review. The key is to make a timely and informed decision when the risk state of one of your investments changes.

And don't be afraid to sell. Selling is simply the first step to reinvesting. At this point, your capital is safe, and you can buy back in at lower prices or review the investing landscape for more attractive opportunities. The intent of this alert is to provide you with a timely reminder that allows you to assess your options when elevated risk is detected. If the stock trend reverses, you can always reinvest, but you'll know that your capital was potentially spared from further decline had the downward trend continued.

Sign up for Risk Alerts today

Have more questions about how SmartStops financial risk management services can help you protect profits and limit losses through effective risk management? Simply visit our easy-to-use FAQ page. Here, you'll find answers to commonly asked questions regarding our Risk Alerts, our portfolio monitoring tools and our premium services. You can also review our testimonials page to hear from real customers. 

As one of the premier risk management services, we're so confident in our methodologies, we offer a free 14-day trial to all of our new customers.