Education Center

Resources and FAQ

What is RSI Rebound?

Dec 17, 2020

If you have Timing by TradeSmith, you may notice some positions qualify for RSI Rebound. What is this? This is a strategy based on the Relative Strength Index. Here are the requirements for a position to qualify: Select symbols that are currently in a valley with a current volume greater than 0 and be in the Health Indicator green or…

Read Full Article

Timing by TradeSmith FAQ

Dec 07, 2020

What requirements of stocks do we have to have to create a cycle? At least 1 year of price history Current volume is more than zero Average 1 year daily volume is more than $2M for U.S. stocks,  A$10,000 for AUS stocks, and more than $100K for crypto. What determines the cycle conviction level? The conviction currently depends on 2…

Read Full Article

What is Volume at Price (VAP)?

Nov 05, 2020

As you work in TradeSmith Finance, you might notice some bars on the chart. What are these bars? This represents Volume at Price (VAP). VAP is an indicator that shows the amount of volume for a particular price range, which is based on closing prices. Volume at Price bars are horizontal and shown on the left side of the chart…

Read Full Article

What is the Relative Strength Index (RSI)?

Nov 05, 2020

As you work in TradeSmith Finance, you may notice the RSI. What is the RSI? This stands for Relative Strength Index. It’s a momentum indicator used in technical analysis that measures the magnitude of recent price changes. It evaluates overbought or oversold conditions in the price of a stock or other asset. The RSI will range from 0 to 100….

Read Full Article

What are Cycles?

Nov 05, 2020

Before we dive into Time-Cycles, let’s looks at cycles in general. A cycle is an event which repeats itself on a regular basis. Cycles exist all around us, and we interact with them each day. Think of the 28-day life cycle of a fly, the four seasons of the year, and solar activity. Even music has cycles to it. Examining…

Read Full Article

How to Duplicate a Portfolio

Oct 26, 2020

Sometimes, it can be helpful to duplicate your portfolio. This is helpful when researching new investments for your portfolio. Duplicating a portfolio in TradeSmith is easy. First, go to the Manage area of My Portfolios. Next, select if your portfolio is Investment or Watch Only. You can see in our screenshot above that we were looking in our Watch Only…

Read Full Article

What is the Difference Between the Risk Rebalancer and Pure Quant?

Oct 26, 2020

At first glance, our Risk Rebalancer and Pure Quant may look the same. Both have the same functionality when it comes to position sizing based on equal risk parity. But both tools serve a different purpose. When you think of the Risk Rebalancer, think of the term “Spring Cleaning.” This tool is designed to help you “clean up” your current…

Read Full Article

How Do We Calculate Dividend Yield?

Oct 26, 2020

Within our program, you may have noticed the Dividend Yield for your positions. How do we calculate this? At TradeSmith, we use a trailing dividend formula. We take the sum of all the dividends in a one year period and then divide this by our latest close price.

Read Full Article

What is the Diversification Quotient?

Oct 26, 2020

As you work in our program, you may notice something called the Diversification Quotient. What is this? The diversification algorithm came after extensive research. We know that volatility is related to returns; however, we also do not want to take on extra risk. We found a way to minimize portfolio risk through uncorrelated stocks with higher volatility from different sectors…

Read Full Article

What Are the Icons on the Charts?

Oct 23, 2020

As you review position charts in our program, you may notice some icons on the charts. In our example above, you can see a green “E” bubble, a red and yellow “I” bubble, and even a red “H” bubble. Your charts might have more or less icons. This article will explain what these icons represent. If you hover your mouse…

Read Full Article