Is The Portfolio X-Ray by Keith Kaplan Legit?

Today, I will be looking into a presentation on the TradeSmith website about something they are calling “The Portfolio X-Ray.”

Just as many investment gurus have promised this year, Keith Kaplan also wants to show us how we can grow rich during the pandemic.

In this review, I will walk you through how Keith intends to achieve that, and by the end, you should be in a better position to decide whether his approach is worth following.

No.1 recommendation….

Want to see my no.1 recommendation for making money online?

This made us 6-figures in the last 3 months:

Go here to see my no.1 recommendation for making money online

What is The Portfolio X-Ray? (The Pitch)

The Portfolio X-Ray is a presentation featuring Keith Kaplan during which he talks about a trading system that bears the same name (Portfolio X-Ray). The event was hosted by Justin Denk.

The Portfolio X Ray by Keith Kaplan

Justin mentions very early into the presentation that the way The Portfolio X-Ray works is by tracking “a hidden stock variable” that most investors do not think about when they trade.

This stock variable indicates whether a stock will earn you gains and when exactly you should sell your stock to earn maximum returns.

The “hidden stock variable” they are talking about is volatility.

To prove that it works, Keith tells us that in late February and early March in 2020, while the economy was shutting down, the volatility indicator alerted him that the stock market would crash and then recover quickly and he adjusted his investments accordingly.

Other experts have had their say on this as we’ve seen in presentations like Great American Tech Reset (Chris DeHaemer) and The Great Depression of 2020 (Jim Rickards).

Who is Keith Kaplan?

Keith Kaplan is the CEO of TradeSmith, an advisory firm that has been in business for over 15 years. It has over 50,000 clients and tracks over 20 billion dollars in assets.

Keith and his colleagues at TradeSmith have been featured on CBS, NBC, Fox, ABC, and even written for Forbes.

He has a background in software and unsurprisingly, he relies on technical analysis to navigate the market. Portfolio X-Ray is a good example of this.

Recommended: Go here to see my no.1 recommendation for making money

How does the Portfolio X-Ray work?

Portfolio X-Ray is an algorithm that tracks volatility. It is based on the following math equation:

The Portfolio X Ray by Keith Kaplan

While modeling it, Keith and his team also consulted the work of two leading economists whose work won the Nobel Prize – they don’t name them.

The Portfolio X-Ray has a couple of tools but Keith only highlights three during the pitch. They are:

  • Trailing stops
  • The Stock State Indicator
  • The position size calculator

A trailing stop is a modified version of a stop order that is designed to protect your gains by keeping your position open as long as the price of the asset is moving in the direction you want.

Keith insists that to get the most out of a trailing stop you need to set optimal limits, which is a tough thing to do accurately because your emotions are likely to get in the way.

To deal with that, he uses his volatility indicator to set his trailing stops so that he doesn’t exit a trade prematurely or leave too late and lose all his gains. Keith explains how he uses the equation I highlighted earlier to set the trailing stop:

“Earlier I mentioned how each stock bounces around differently from each other. That’s why you have to have customized trailing stops for every single stock you own.

What this equation does is it scans each stock…

Then it understands what the average amount of bounce between a price high and a price low the stock has.

It then assigns a special number to that stock based on that average…

We call that special number the Volatility Quotient or VQ for short.”

It treats every stock differently based on idiosyncratic differences between different companies in different industries.

The Portfolio X-Ray also lets him know when to re-enter a trade that he had previously exited. To achieve that, it uses “The Stock State Indicator” to scan the market. It then rates the stocks as either a sell (red), a buy (green), or a caution (yellow).

The final tool that he reveals is one that lets you know how many shares of a stock you should buy. It is called “The position size calculator” and it determines how you should divvy up your portfolio.

Recommended: Go here to see my no.1 recommendation for making money

He also says that the volatility indicator protects his investment from black swan events – unpredictable events that impact your investment massively. Here is how he puts it:

“Based on our research we’ve found that we can also know when to exit a stock before a black swan slip.  It comes down to tracking that mysterious stock variable [volatility] and how it affects each stock individually.”

He intends to use his trading system to help investors sidestep the effects of adverse economic shifts. To quote him:

“We want to help the ordinary investor to avoid being taken by surprise by events like the Covid-19 crash.

Because many, many more pullbacks will come down the pike. And all it takes is just one crash to set investors back for years like we saw with the Great Recession of 2008 and 2009. Or the dot com bust of 2000.”

To achieve this, he runs an advisory service called TradeStops.

Recommended: Go here to see my no.1 recommendation for making money

What is TradeStops? (The Newsletter)

TradeStops is the name of the investment advisory service through which Keith gives recommendations gleaned from the Portfolio X-Ray.

If you sign up, you will receive:

  • Email or text alerts notifying you when you should buy or sell your stock.
  • Re-entry alerts letting you know whether you should re-invest in a position you had previously exited.
  • Onboarding training videos and a quick start guide.
  • You will have access to a special team member who will personally walk you through everything.

How much do you pay to join TradeStops?

You can subscribe for one year for $79 although Keith says it normally costs $539.

Does TradeStops have a Refund Policy?

You can request a full refund if you cancel your membership within 30 days of purchase.

Recommended: Go here to see my no.1 recommendation for making money

Closing Remarks on The Portfolio X-Ray

Keith Kaplan and his team at TradeSmith have designed a trading system that uses a few tools to navigate the market. In the presentation, he revealed three of them. The first one enables him to predict when to buy or sell an asset, the second one lets him know whether to re-invest in an asset he had previously sold, and the third one tells him how many shares he should purchase of a given stock.

Unlike what you see with many presentations, he doesn’t have one stock pick that he is touting to entice new subscribers to join his newsletter.

The newsletter he is promoting is called TradeStops.

Before you go…

Want to see my no.1 recommendation for making money online?

This made us 6-figures in the last 3 months:

Go here to see my no.1 recommendation for making money online