Trading Using The Wall Street
Sentiment Weekend Report: A Simple Model for using the Senticator Section of the Weekend
Report, trading the SPY using the Senticator Results.
The Senticator's 5 Simple Rules
Using the Senticator results section of the Wall Street Sentiment Weekend Report,
you can easily implement this trading style with one phone call to your broker before the
open, and occasionally, one call at the close on Wednesday.
It's IDEAL for those who want to trade and exploit the
Senticator's incredible accuracy, and also for those who don't have time to watch the
market all day. (note:
this is based upon a simple, easy to apply back-test).
Rule #1: Buy or Sell
(based upon the Senticator signal) at the open on Monday.
Rule #2: Enter an order to exit the position at a 2% profit.
Rule #3: Enter a Stop Loss order at a 3% loss.
Rule #4: If stopped, Re-enter on Wednesday at the close if SPY position
is still off 2% or more at the close (i.e. on a Senticator Sell, if stopped, if the SPY is
up 2% from Monday's open on Wednesday's close, re-enter).
Rule #5: If the market gaps open 1% or more in the direction of the
signal, pass on the trade.End Rule:
If a position has hit neither its target nor stop, exit at the close on Friday (or the
last day of the trading week). |
The results of this trading model were quite respectable, considering the limitations of
end of day trading. The implied net return was over 60%
for the past two years, with a 6:4 win/loss ratio.
Below: The Green areas represent weeks wherein if you had
followed the above listed trading rules according to the Senticator, you would have had a
winning trade. White areas represent weeks where the Senticator was neutral, and therefore
no trade was recommended.
With only 23% losing trades
Past performance should not be construed as a guarantee of future returns.
With only 29% losing trades
Past performance should not be construed as a guarantee of future returns.
Note: our Premium service will use other tools to fine-tune trades and to reduce risk
further with morning updates.
Cumulative Implied Net Return on Margin
+60.4%
Order your Annual Subscription to the Wall
Street Sentiment Weekend Report:
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