TrendTrader December 29, 2010

ATP - Active Trading PartnersEvaluation

Website: http://www.activetradingpartners.com

Before you read this please look at the overview of Active Trading Partners (ATP) I wrote earlier. In this second part I will use our article Choosing a Trading Subscription Service to evaluate this service.

Look at reviews
I searched for some reviews that other people wrote and since I did not found any meaningful reviews I decided to check ATP out myself.

Risk free trial
There is no risk free trial. You can find this on their website:
I understand that there are no refunds. You may unsubscribe at any time to prevent future billings.

Can I get support?
Subscribers have the ability to email David Banister directly and most of the time I got an answer right away after just a few minutes.  It is almost 24-7 since he is carrying a smartphone.

Check if you have enough money to trade?
I looked through the site and did not find a required amount that is needed to trade. After an email I got the following reply:
Traders with $10,000 can make money with us on a monthly basis. Minimum $10K, but $25 makes it easier.

The stocks or ETF’s that are traded are from the US or Canada so please look at the transaction costs to trade that kind of stocks or ETF’s. For me the transaction costs (including tax, exchange fees) to trade US or Canadian stocks are about $20 to buy and $20 to sell. On$1000 per position that is already 4% and after that you have to make a profit so you understand that the transaction costs are relatively big in this case.

I personally would recommend $25K to trade to get the best out of this service, you will also benefit relatively more from the smaller winners.

Money management
Does this service help you with your money management? For the most part ATP will help you with your Money Management but not all the way. Let me explain:

David Banister from ATP does a good job of helping his members to scale in properly. He will tell you to scale in 1/2 of a position for example.Later on the second 1/2 of a position is recommended if required. He also has some videos that you can find on his site how this process of scaling in and out works. Great material.

He will also tell you what the maximum price is to buy a certain stock.

When you are holding an advised stock you will get an alert when to close or scale out of a stock. He also gives a stop loss or a trailing stop that you can monitor on your own.

ATP will not help you to determine what your position size per trade has to be for you as an individual trader. So read a book about Money Management and determine what you want to risk per trade.

Does this service fit my personality?
When you want to join a service you have to see if it matches your personality and lifestyle.

  • ATP has Core Positions (longer term trades) and Active Trades (3-30 days swing trades) so it certainly is not day-trading.
  • I personally find this service not stressful because I get enough information what the plan is and when it goes wrong were to get out.
  • When you have access to your email or keep an eye on his website you can use this service next to your day time job.
  • In down markets ATP will reduce positions and switch to ETF trading for awhile. So less core positions and more active trades.
  • Fundamental and technical analysis is used to pick the stocks or ETFs.
    In my opinion these two combined give a better chance of making a profit.

What kind of different memberships are offered?
There currently are 2 different memberships:

  • Active Trading Partners – Monthly Subscription ($249 USD Monthly)
  • Active Trading Partners – Quarterly Subscription ($649 USD Quarterly)
    Active Trading Partners (Save $98) + TheMarketTrendForecast.com Free (Save $249)

Check the current prices on the ATP website.

How complex is the service?
Some traders are more advanced than others so when a service enters a territory that you have no knowledge of the service may not be for you.

This service is not complex if you take your time to first look at the videos that can be found on how to trade when you join this service. I really urge you to check them out before you start trading to get the most of this service. It is well explained but depending on how you traded in the past you may have to adjust a bit and get accustomed to the trading methodology.

ETFs and stocks are advised with a maximum price,stop loss and a target price. Also David mentions how much of a position should be traded. For example scale in with a 1/2 position. So the basics that a normal trader should manage to cope with.

What is the performance of the service?
On the home page of the website several of the last trades are mentioned. While I was checking out the service in the past 3 months only one advised stock broke through support and hit a stop loss. The damage was only minimal. The rest of the advised stocks were all winners.

I managed to grow my total account with 25% in less than 3 months.Keep in mind that I was also trading our own stock picks and that sometimes for the ATP picks I did not allocate the money I would normally risk since I was checking it all out. Also I have not traded every trade since my account would not allow that. So when you only would have traded with ATP with your normal position size you would have made more money.

Here is a list of the profit in percentages I made, straight from my trade log 4.82%, 5.90%, 6.13%, 13.65%,  37.54%, 44.69%, 2.24%, 5.90%, 61.82%, 62.17%, -9.06% and 43.44%.

A promise is a promise
We have already added a nice collection of experts to our website and David Banister will shortly join this select club of experts.

Conclusion
I like trading with this service next to our own picks. David Banister works hard for his members and tries to protect the money of his members like it was his own. I also like the charts and analysis he does and he surely knows how to do Elliot Wave Analysis.

In short:

  • Not complex (when you first check out the trading videos on the site).
  • Most of the money management is covered except the position size per trade (you have to determine your risk).
  • Good profit.
  • Mostly longer term trades and now and then some 3 to 30 day trades.

I also would like to review how this service performs in a down market trading ETFs and reduced positions.