PALO ALTO, Calif., Aug. 5, 2011 (SEND2PRESS NEWSWIRE) — SmartStops (www.SmartStops.net) announced today the launch of the SmartStops Risk Barometer Index™ or SRBI™. The SRBI is an easy to use metric that helps investors quickly gauge the relative level and direction of risk posed by a specific group of equities such as a particular market or sector.
Derived from the SmartStops individual equity short term risk signal which identifies equities as being in a normal or above normal risk state on any given day, the SRBI compares the current risk state ratio for a group of equities to the group’s 100 average. Unlike the VIX which uses volatility as a proxy for risk and rises when equities experience big moves in either a positive or negative direction, the SRBI leverages the SmartStop Above Normal Risk State which focuses only on abnormal price movements to the down side.
An SRBI greater than 1 indicates that the number of equities in the group experiencing above normal risk is higher than the average over the last 100 trading days.
An SRBI below 1 indicates that the number of equities in the group experiencing above normal risk is lower than the average over the last 100 trading days.
The SRBI can be used in conjunction with traditional market risk indicators such as the VIX to help investors gain visibility and better manage their risk exposure.
“Investors make purchase decisions based on risk/reward analysis. Unfortunately, risk does not remain constant through time,” explains Chris Conway, SmartStops’ Director of Product Management. “The SRBI can help investors quickly gauge a market or sector’s risk profile relative to its recent history, allowing for more informed and timely decisions. We expect the SRBI to be particularly helpful in strategies employing sector or market rotation.”
Financial Advisor Akber Zaidi welcomes this new risk metric. “Managing risk is fundamental to successful investing. I am always on the lookout for innovative and effective ways to quantify and track risk exposure and I look forward to adding the SmartStops Risk Barometer Index to my risk management toolbox.”
Currently SmartStops is publishing SRBI numbers for the S&P 500 and the Dow 30 as well as for ten market sectors including Basic Materials, Consumer Goods, Consumer Services, Energy, Financials, Healthcare, Industrials, Technology, Telecommunications and Utilities.
To learn more about the SRBI and to view today’s SRBI values, visit http://www.SmartStops.net/PublicPages/MarketRiskBarometer.aspx .
SmartStops.net is dedicated to helping investors of all levels be more aware of changes in their risk exposure enabling timely decisions that protect assets, improve returns and provide peace of mind. SmartStops’ portfolio monitoring and risk alert services start at just $9.95 per month. For more information visit us at http://SmartStops.net or contact us at info@SmartStops.net.
BNP Paribas’ Cortal Consors Launches SmartStops.net
Translated and edited from: Cortal Consors BNP Paribas Press Release: https://www.cortalconsors.de/euroWebDe/-?$part=Ueber_Uns.Desks.Das_Unternehmen.Desks.Presse.Desks.PM.content.body.20_Article&externalid=denps49442905
21. December 2010
SmartStops helps to secure profits and limit losses with automated intelligence
Just in time for Christmas, Cortal Consors is providing to its customer an innovative new free feature. Customers will now have immediately access, so far exclusively, to the intelligently adjusting stop loss service SmartStops. SmartStops acts as an monitoring and alert tool which helps investors to secure profits and limit losses. SmartStops are generated daily for approximately 500 popular equities on the European exchanges, as well as equities for all major US exchanges. The stop loss signals are adjusted each day and designed to trigger when a trading pattern indicates the equity has entered an abnormal period of risk. Customers can then decide if they want to quickly transfer this proposal to a self-direction a stop loss. SmartStops dynamically apply a range of technical models to adapt stop loss points as market conditions change.
Intelligent risk management
This service is available in short and medium-term version. With the short term variant, the SmartStop is placed closer to the normal range of variance. They react thus faster on market movements than the medium-term SmartStops which are more tolerant in relation to exchange rate fluctuations. SmartStops give more room for variance during an upward trend and also adjust for lateral movement. This helps investors avoid whipsaws or exiting a position during a possible short term correction. However in downward phases, SmartStops adjust closer to the normal range of price variance, helping investors identify greater risk exposure and avoid major losses. As soon as customers log in to the Cortal Consors website and call a share Snapshot, the SmartStops is indicated to help automatically maintain protection – for all DAX, MDax, TecDax, Nasdaq 100 – and Dow of Jones values. In addition, the French benchmark index CAC 40 as well as 80 additional French equities are covered. In the coming year, this service will be extended to 20 additional ETFs.
For further information on SmartStops, go to: