Conscious Dealer Assessment
Ease of Use
Conscious Dealer is a inventory choosing service run by retail dealer Eric Ferguson. This service is aimed toward swing merchants and consists of entry to a wide range of stay buying and selling accounts in addition to a watchlist, academic assets, and extra. Be taught all the things it’s essential to find out about this inventory choosing service by studying our full Conscious Dealer assessment.
About Conscious Dealer
Conscious Dealer is a inventory choosing service for swing merchants run by Eric Ferguson. Ferguson is a retail dealer who makes use of backtested methods to establish short-term inventory, choice, and future trades and share them with subscribers.
Though Conscious Dealer is pushed by backtested methods, the service has had a combined document of success since launching in 2020. In our Conscious Dealer assessment, we’ll take a better have a look at what this buying and selling service presents and aid you resolve if it’s well worth the cash.
Conscious Dealer Pricing Choices
Conscious Dealer prices $47 monthly. The service doesn’t supply a trial interval.
Conscious Dealer Buying and selling Model
Conscious Dealer makes use of a customized swing buying and selling technique that has been developed and optimized by Eric Ferguson utilizing backtests. This technique relies on pullbacks throughout an uptrend. Particularly, Ferguson makes use of Keltner Channels to establish shares that have a quick pullback under a shifting common earlier than resuming climbing.
Ferguson trades each shares and choices utilizing this technique. Choices trades deal with in-the-money name choices that expire in 3-9 days.
Ferguson additionally trades futures for the S&P 500. He makes use of seven totally different backtested methods for futures buying and selling, every of which is defined intimately for merchants who need to copy Ferguson’s methods.
Conscious Dealer recommends committing 1% of your account worth per inventory commerce and 4% of your account worth per choices or futures commerce. The platform presents a calculator that will help you decide place sizes for every commerce based mostly in your present account worth and accessible margin.
Buying and selling Accounts
Conscious Dealer presents entry to a number of totally different stay buying and selling accounts. The “Characteristic” account is the service’s predominant buying and selling account and consists of inventory, choices, and futures trades. Ferguson usually locations not more than two new trades every day, and most trades are open for every week or much less earlier than being closed. All trades embody the entry worth, worth goal, and cease loss worth.
Merchants even have entry to a watchlist, which incorporates entry costs, worth targets, and cease loss ranges for quite a few shares that meet the pullback technique necessities. Merchants who’re on the lookout for greater than two trades per day can discover further trades within the watchlist.
An “Further Choices” account shows additional choices trades that don’t make the Characteristic account, however which Ferguson believes are worthwhile trades. A “Low-priced Inventory and Choices” account focuses on shares with costs between $20 and $100 and choices contracts with premiums lower than $1.
Conscious Dealer doesn’t challenge alerts when new trades are positioned, so it’s as much as merchants to keep watch over the service. In keeping with Ferguson, there’s no distinction in outcomes if trades are positioned just a few hours later than after they first seem on the positioning. Nevertheless, he additionally recommends a number of web site monitoring companies that can be utilized to challenge alerts when new trades seem on Conscious Dealer.
Conscious Dealer Academic Assets
One of many good issues about Conscious Dealer is that Ferguson lays out his buying and selling strategy for anybody to repeat or modify. He has a video that walks merchants by way of his pullback technique in addition to a inventory display that can be utilized with TD Ameritrade’s Thinkorswim buying and selling platform. He additionally presents examples that showcase every of the seven futures methods he makes use of for buying and selling S&P 500 futures.
Conscious Dealer Efficiency
Conscious Dealer boasts that the pullback technique its trades are based mostly on produced a return of 181% in a 20-year backtest from 2000 to 2020. Nevertheless, since launching in 2020, Conscious Dealer’s Characteristic buying and selling account has delivered a web return of –8.9%. The account boasted features of greater than 60% in mid-2021, however it’s price noting that these features disappeared a number of months earlier than the broader inventory market started to say no.
In keeping with Ferguson, that is partly as a result of the bull market throughout 2020-2021 was extra risky than available in the market within the years previous to 2020. Nonetheless, that’s a really massive distinction between backtested and precise outcomes.
Most trades within the Characteristic account have a web revenue or lack of simply 1-2%, and Ferguson seems to do a very good job of retaining the loss from any single commerce to a minimal utilizing cease losses. Nevertheless, Conscious Dealer has extra dropping trades than successful trades.
The Further Choices account has a web return of –64.7%, whereas the Low-prices Shares and Choices account has a web return of –16.2%.
How Does Conscious Dealer Examine to Different Buying and selling Companies?
Conscious Dealer generally is a helpful service for merchants who need to be taught Ferguson’s inventory, choices, and futures buying and selling methods and modify them for themselves. Nevertheless, Conscious Dealer’s efficiency document is comparatively poor, particularly in comparison with different swing buying and selling companies.
Merchants who need extra persistently worthwhile swing buying and selling inventory picks may need to think about a service like Gorilla Trades. Gorilla Trades has been round for greater than 20 years and, whereas it doesn’t supply a return since inception, all however just a few trades within the present portfolio have unrealized features of 5% or extra.
Merchants might also need to think about IBD MarketSmith, a service that gives annotated charts and watchlists that will help you discover candidate shares for swing buying and selling. MarketSmith requires extra self-directed analysis than Conscious Dealer, however it additionally presents extra choices for controlling threat and doubling down on worthwhile trades.
What Sort of Dealer is Conscious Dealer Finest For?
Conscious Dealer is designed for swing merchants who need actionable inventory, choices, and futures commerce concepts. Nevertheless, the service has produced adverse returns throughout all of its numerous buying and selling accounts, so it’s laborious to advocate Conscious Dealer over competing companies. Merchants could possibly use Conscious Dealer’s methods and instruments to construct their very own swing buying and selling technique, however that’s not so simple as receiving ready-to-trade inventory picks.
- Clear, easy-to-follow swing buying and selling technique
- Commerce concepts for shares, choices, and futures
- Value targets and cease loss ranges for each commerce
- Watchlist for added commerce concepts
- Poor efficiency since inception in 2020
- Doesn’t challenge alerts for brand new trades