RiosQuant Trading Room
A high quality trading room. A user can very easily replicate all of the trades within the trading room. A very high probability of earning daily profits. No smoke and mirrors. The lead trader is very, very good. The trading performance listed on the website is truthful and honest.
User Review( votes)
Today’s review is RiosQuant, or Rios Quantitative. The main website is located at riosquant.com, and a secondary website can be found at thetradingroom.com. The owner of Rios Quant is Joe Rios and on his website, he describes himself as a 20 year trading veteran, registered Commodity Trading Adviser (CTA), former employee of Prudential Securities, Citibank, and is a portfolio manager that currently is registered with the US Commodity Futures and Trading Commission (CFTC). In short, this is a pretty impressive list of titles, prior real world work experience, and the registration with the CFTC is no laughing matter. However, like all trading room educators, or trading products, I treat them with a great wariness.
When I go into a review, I begin with a big yellow jaundiced eyeball that stares at all this stuff with great doubt. Most of these guys like to paint themselves with fancy titles, platitudes, and self aggrandizement. In short, they like to puff themselves up. As I looked at the Rios Quant website, what I like to see is a trading track record. I want that front and center. Truthfully, I could care less if the person has a bunch of fancy titles, I just want to know if the guy is putting out a record. The next thing is to figure out if the record is real. And the only way to do this, is to sign up and begin screen recordings. I want to see that the trades that are being called, live in the trading room are showing up on the performance page. Too often, and with many trading guru’s, they will only post the winning trades. And many of the losing trades get lost in the chat, background noise, slippery language, and are never reported on the performance page.
My First Week With Rios
On February 2nd, 2015 I began my recording using Camtasia screen recording software. The trading room was moderated by either Joe, Ed, or Augustine. During the first week of screen recordings, the trading day usually lasted about 2 hours. All trade-able markets were discussed and were open to potential trades. What do I mean all trade-able markets? Oil, gold, ES, bonds, grains, softs, natural gas, all of the currencies. It was all reviewed, every market was open to review. Though I have no idea what I was looking at, or why, I can say that they have a pretty complicated and thorough set of filters for each market. And only commodities that were traded on the CBOT, CME, ICE, NYBOT were open to review. No opaque markets like thinly traded stocks or ETF’s, or thinly traded futures like rough rice were open to trading. Only markets with deep liquidity. The image that you see to the left is a chart and table. The table has a bunch of formulas that calculate in real time. Don’t ask me what is in the soup, I have no idea. Take a quick peak for yourself.
That basic idea was to use the filter to find only the choicest trade setups. I felt like we were looking for the “loaded dice” type trades, where the odds were stacked in our favor. So, how did I do the first week of trading. I lost money. From the March 16-March 20, 2015, I executed 8 trades and lost $200. I took every trade to the best of my ability. And following along was very simple. The trades were given with plenty of time pull up the chart, find the symbol, enter the price on the chart, hit all the buttons, etc. None of the entries were on a limit order. This is of huge importance because many trading rooms use limit order executions as a means of executing a fraud, but I wont go into that here. But what I will say is that a grandmother can replicate what is happening in this trading room.
OK, so I lost money the first week. Did Rios report this losing week on his website? Initially he did not. In fact, these trades did not show up until two weeks after the fact. I never emailed and asked or attempted to cause any red flags, I simply wanted to observe. To see if Rios would attempt to hide even a single trade or attempt anything shady. The trades did eventually make it onto his website, and to Rios credit, he reported a loss of $250. Why did he report a loss of $25o, while I reported a smaller loss? Because Rios deducts $10 per trade as commissions paid, and I did not. This was my first clue that Rios was reporting real trades.
My Second and Third Week With Rios Trading
Once again, from April 27th-May 8th, 2015 I attended and recorded 10 straight trading days. Every couple of days, I would register a new user to access the free trial of the trading room. This required multiple IP addresses that I had to rent. Why? Because I do not want these trading rooms seeing the same IP address showing up. Multiple IP addresses and identities allows me to slip into these trading room undetected. All together, I recorded an additional 30 hours of video. Each trade was recorded. After 5 consecutive days of recording, I then had my assistance located in the Philippines attend the trading room and attempt to replicate the trades via simulator.
The 10 days of trading reaped excellent results. I do not want to post the spreadsheet of trades. Why? Because Rios has not yet posted his results on his website. I prefer to wait and see if my trading matches his trading. However, I did produce a video that you can watch below. This video is the typical trade that you can reasonable expect to experience in the trading room. I highly recommend that you watch the video in its entirety. Yes, the video is long at 20 minutes, but if you are serious about trading, and perhaps purchasing from Rios, then you should find the time to watch and observe how he goes about managing his trades.
Can Grandma Do This?
One of things that I did not like about Rios was the chart overlay. The pictures that you see to the left is what you will see on your screen share. Can anyone tell me what this looks like? To me, this looks like a big messy pile of indicator stew. There are a million things going on. I found it confusing and annoying. Look for yourself. What is happening here?! All of this messy nonsense irritated me. And so I sent an email directly to Joe Rios, I explained to him that I had no idea what I was looking at and I found it annoying. I explained to Joe that I was a 78 year old grandmother from Tupelo Missisippi and how was I expected to understand this? Joe Rios responded with an apology. He explained that what I was staring at represents a life time or market observation. Everything he knows is there on that screen. He explained that markets are complicated and everyday is like walking through a brand new minefield. And the purpose of that minefield is to blow up my trading account. That all of those line are his best attempt to guide me through the minefield from someone that has spent 20 years traversing these financial minefields.
Joe went on to explain that everyone is going to hit a mine. This is a simple fact in operating in an uncertain environment. And that the most important thing is to make sure that I was capitalized properly, in fact he recommended that anyone taking each and every trade in the trading room should have a $25,000 dollar account. This might sound scary to some, but this is quite true. In my experience, the trading room vendors that claim that you can make a living from trading a $2,000 dollar account are flat out lying.
Another thing he said that stuck…”your biggest draw down is always in front of you”. Wise words that you never hear from 99.9% of the educators.
More Questions From Joe
One of the things that really concerned me about Rios Quant Trading Room is that all of the trades are placed on a simulator. This is a huge issue for me. And I wanted answers. And so I called Rios Quant, ready to hammer them hard. I called and left a message and awaited a return call. A day later, I get a call from Ken Erickson. I immediately call him out on the use of a simulator. He explained that the trading room is moderated by three people, and that the platform is set up specifically for the trading room. The platform is handed from moderator to moderator and everything that is called in the trading room is on that master platform. And so I quickly asked him about a trade that happened a few months prior. He said, “no problem” and quickly accessed the master platform was able to match the trade in question with the trade on the platform. I got the following screenshot to the right.
I really cannot complain because his record of trades were dead on. And the trades are highly replicable and easy to follow. However, it does annoy me that I don’t have a live trading DOM. But on the other hand, I was assured that all of the moderators do trade, but that running the trade room and dealing with live money is just to stressful. Its was a good enough answer for me. And that is only because I did my own research over a three week period.
The Cost Of Rios Quant
Nowhere on Rios Quant or The Trade Room, you will find a price for products. I found this annoying. But I was able to get the answers I needed from Eric. The cost is $2,000-$4,000. There are three packages available. Each contains the Rios indicators and a certain amount of time in the trading room. Basically, spend $3k and you get lifetime access to the trading room.
Another option is to spend $400 a month for the trading room. You just get access to the room.
Some Practical Limitations
In my opinion, Rios is offering a high value product. But with a big caveat, you have to understand going into this that Joe and the moderators will do things like use trailing stops, or get out of trades based upon the relationship of one market compared to another market. These are variables that lay within the realm of nuance and fringe probabilities. You cannot easily quantify nuance. These are the types of skills that are developed over many, many years of staring at a trading screen. However, this bit of uncertainty should not be something to avoid. Why? Because at the end of the day, you can always just replicate the trades in the trading room and expect to make money.
The second issue would be account size. Based upon prior performance, and considering that “your worst drawdown is always in front of you”, then you should not attempt to execute across such a broad spectrum of tradeable commodities unless you have the minimum account size. Joe recommends $25k, I think $10k should suffice.
My Best Piece Of Advice
Sign up for a trial. Use a simulator. Request a new trial. Use a simulator. Do this for a minimum of 3 weeks. Before you attempt this…you need to prove to yourself that you can copy these trades. You need to use a simulator and simply copy. A simulator is the best option and is actually better than a live account. Why? Because I simulator will not allow a limit order to fill unless the price passes through the bid/ask spread. Well that its for now. Thanks for reading. And as always, please feel free to express yourself in the comments section below. Even if you hate me and disagree with everything that I write, even your opinion is valuable and I appreciate the feedback.