Why Trade The Sentiment?
Wisdom of the crowd (or not?)
Our Bear/Bull ratio uses thousands of Twitter messages to generate a sentiment signal. This crowd-generated signal is designed to be a contrarian signal. Rather than follow the crowd, we want to take the opposite side of the crowd.
The Bear / Bull Ratio
The signals on Trade the Sentiment revolve around the basic concept of the Bear / Bull ratio. This ratio has been developed to mimic the Put / Call ratio that most investors and traders are comfortable with.
Contrarian & Extreme Signals
While you can use these signals any way you wish, the Bear/Bull ratio is designed to be used to identify and act upon extreme measures.
Based on Academic Research
The signals provided on this site are based on years of academic research in sentiment analysis, natural language processing and decision support.
Along with our Bear / Bull Ratio Long/Short signals, we provide backtest results. The strategy used for the backtests is not terribly complex. It buys/shorts on a signal and holds for X days. While not complex, they do show some value in these signals.
Totally free access to index ETF's (SPY, IWM, QQQ, DIA) forever. Free trial access for 30 days with recurring subscription to access anything other than the index ETF's.
About Trade The Sentiment
Trade The Sentiment offers daily market sentiment signals based on Natural Language processing of Twitter messages. The sentiment found within Twitter messages are then converted into a Quantitative measure called the Bear/Bull ratio which is then used to create signals to enter/exit the market.
- Daily Sentiment Signals for most Market Symbols
- Natural Lanaguage Processing for Sentiment Anayslsis
- Currently Twitter messages are analyzed but other Social Media are planned
- Custom Signals (Market Breadth, Sentiment Volume Index, Bond Stock Oscillator, etc)
- Daily Signals and Volume's reported
- Simple backtests provided for most symbols