Posts Tagged ‘ system trading

Open Range Breakout & Market Psychology

Open Range Breakout & Market Psychology

The opening range breakout (ORB) is one of the best known trading methods around. There are many different variations but the main point always stays the same; define an offset from the opening range and use it to identify the daily trend. You buy at a given level above market open and sell at a given level below. Read more

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Market Psychology and Risk Management

Market Psychology and Risk Management

We recently hosted a Webinar on how market sentiment can be used to reduce investment risk. A recording of the webinar is now available for a limited time. Don’t miss this opportunity to see SentiTrade in action! Read more

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Next market trend – the sentiment index tells it all

Next market trend – the sentiment index tells it all

Parallel to the market recovery, investor optimism has been become increasingly bullish the past few months. Of course, there is always a place for “positive thinking”, however, one shouldn’t lose track of reality: We’ve recently seen improving numbers from the US economy, worrying signs from China, a “worse than expected” situation in Europe and “unexpected troubles” in the mid-East that contribute to rising energy costs. Read more

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Futures Trading: Once you get in, how do you get out?

Futures Trading: Once you get in, how do you get out?

It is one thing to get in to a futures trade, i.e.  knowing under which conditions to take a position. Knowing when to exit is just as important. By pre-defining your exit according to specific profit targets and stop loss settings, you may significantly lower the stress level while enhancing your portfolio performance…
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Dow open trading strategy

Dow open trading strategy

In our previous post we discussed a trading strategy that anticipates a take profit scenario on Friday afternoons. This week we present a strategy that will help you position yourselves ahead of the Dow open. By using SentiTrade’s market psychology data, we calculate the statistical probability of a U.S. market up or down opening. Read more

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Market psychology in unchartered territory

Market psychology in unchartered territory

We are now entering unchartered market psychology territory. SentiTrade’s 38 moving average line has crossed the 200 average, signifying a predominately bullish market sentiment. At the same time we note increasingly high levels in SentiTrade’s sentiment volatility index (V-SQ). It is now well above the 85% level, and is normally a clear sign of Read more

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Italian Heat

Italian Heat

Now that the politicians have decided that Greece is beyond saving, focus is quickly moving onto the next challenge, Italy. Yesterday, the country staged another bond auction, the treasury sold €3.9 billion for a yield of 5.6%, up 0,7% from the July 14th auction. More concerning than the rate increase however, was that the demand was notably down. As a result, the benchmark rate rose to 5,75%, approaching the levels from early August, when the ECB stepped in. Read more

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SentiTrade partners with NinjaTrader

We are proud to announce a partnership with NinjaTrader, an award winning trading platform for traders worldwide. This video features a quick introduction on SentiTrade and how NinjaTraders may use it for automated trading strategies.

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Mr. Wouldhave and Mrs. Couldhave vs. SentiTrade

Mr. Wouldhave and Mrs. Couldhave vs. SentiTrade

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. Read more

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Momentum strategies for SentiTrade

Momentum strategies for SentiTrade

Since last week the DAX lost about 700 points, same with the DJIA. Could SentiTrade predict that this was about to happen? Our commentary over the last weeks gave plenty of clues and we’re pleased to note that our fully automated momentum strategies followed through. They apply a combination of the concept previously discussed, namely high/low marks from the SentiTrade indicator (trigger points) and momentum calculations of how quickly the sentiment is changing. Read more

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