That Mr. Wouldhave and Mrs. Couldhave are the most successful investors of all times, is hardly breaking news. That the 20 day SentiTrade average anticipated the current market downfall is however, breaking news.

The method behind SentiTrade’s market sentiment indicator, is simply to calculate the ratio between positive and negative news items. Our fully automated computational software takes care of the hard part, namely reading and assessing whether the news is bullish or bearish.Next, we translate the relationship between positive and negative news items into firm number values, i.e. quotient numbers. Users thereby identify trends in market psychology that are l ikely to impact course movements. For example, we identified a new low of in the 20 day SentiTrade average already on June 20th.

It is of course easy to point this out in retrospect, however using SentiTrade in a fully automated trading strategy documents the real and tangible benefits this information has. The performance summary is based on a YTD minute by minute analysis of trades taken on the DAX future, using the SentiTrade data.

Knowing that negative news has a greater impact on the market than positive, it’s not surprising to find August to be the most profitable month so far.

If you’d like additional information on our indicator and trading strategies, please get in touch with us at contact@sentitrade.com