Guerilla Trading (StockPointer) – Review
Guerilla Trading (GT) is a stock picking service for swing trading. Once signed up, you receive a daily “StockPointer” email, which comprises four sections. The first is a review of New Trades – these are trades that you should have taken if you are following the system. You are told where the entry was, what the target is, where your stop should be, and the potential risk and reward for the trade (as a percentage of price). The New Trades section also includes a mini-chart showing the entry.
Next is the Watch List. This is where GT tell you what stocks to keep an eye on for potential entries, so is really the most important part of the alert email. You are given a list of potential long and short trades, each with entry prices, initial stops, targets, and again, risk and reward potential. You are also told what percentage of your portfolio each stock should represent if the trade is taken. GT don’t appear to fall into the trap of feeling that they must produce a trade for you every day – some days the watch list will be empty because no suitable trades are on the radar – a good sign.
The third section is a complete list of the current portfolio, i.e. trades that are currently open. If the stop or target for any of these has changed since the previous day, it will be highlighted.
Finally, there is a list of closed out trades so you can quickly see performance to date.
The trades themselves are based on tried and tested strategies, such as volume breakouts, support and resistance bounces and breaks, and entries into trends. GT claim that their winning trades make between 10% and 30%, whilst never risking more than 10%. During the review period, not many winning trades managed more than 10%, however the system was still profitable overall. Full performance figures are always available from the GT website, everything is very open and honest.
One interesting aspect of the GT system is that it is possible to have it auto-traded for you by a couple of different brokers (although sadly not Interactive Brokers). If you want to remove all emotion from your trading, then having someone call the trades and someone else trade those calls for you is certainly one way of going about it!
GT is available for a free two week trial, and unusually there is no prepayment required, just sign up on the website and start getting the emails.
Summary: If you want someone else to make your trading decisions, or are looking for a way of adding swing trades to your portfolio to offset some of the risks in day trading, GT is as good a way of doing this as any. Of course, to have the best chance of making consistent overall profit requires that all signals are traded, so unless you have a broker auto-trade it for you, at the end of the day you still have to pull the trigger on each and every trade.
Since this review was originally written, I have tried on numerous occasions to get in touch with Guerilla Trading. All of my messages have gone unanswered. Their website is still up and running, but with absolutely no response from them despite all my efforts, I would be very cautious about signing up for this service!
Website: Guerilla Trading