News Quantified Review: How to Trade the News
This is my in depth review of news quantified. I took 5 days of trading the system to show you exactly how it works. If you want to attend a webinar and see all of the details regarding the News Quantified trading platform, click here.
I also do videos of each of those days, as well as an interview with the founder of news quantified Oliver Schmalholz. This is done so you can have a complete understanding of how the system works should you want to make a purchase of this system.
As the science of trading continues to evolve, some investors have begun to lose sight of the fundamentals of intra-day trading. While there are countless trading platforms that are available to the general public that measure and dissect every quantitative aspect of the stock market, few take into account the human element, and the trading psychology that is involved in our markets.
What is News Quantified by Oliver Schmalholz?
News Quantified is a revolutionary real time news analytics platform that tracks and analyzes how stocks perform after receiving a buy, hold, or sell rating by any of the major rating institutions (such as Standard & Poor’s), and then calculates the historical increase or decrease in price so that you can decide whether or not to take action.
While attempting to forecast how traders will speculate and react to news in the markets has long been seen as a futile effort by many, News Quantified has truly mastered this science by tracking how stock prices historically behave after their ratings have been adjusted, and then gives you the power to decide if the trade if worth taking or not.
I decided to test the news analytics platform out for myself over the course a week, and document my trades on video along the way. Here is my review or the News Quantified news analytics platform.
News Quantified: Day One
Every morning upon logging into the web-based platform, you are given a news announcement regarding that days upgrades and downgrades in the market. This is extremely convenient as not only are news announcements for today’s stock collectively sent to your dashboard, but the top 10 upgrades and downgrades are readily listed as well. These top 10 upgrades and downgrades are based upon the stocks historically price movement after receiving a change to its rating. The largest movers are ranked higher, as greater volatility presents a greater opportunity for reward.
Netflix (NFLX) was ranked as the number one upgrade on the day, On 4/13/2018 at 6:12 AM EST the stock was upgraded from a hold rating to a buy Deutsche Bank, and has historically climbed 3.33% in the past after receiving similar ratings.
As you can see, NFLX was already up on the day after the news, so I decided to place my first trade to put News Quantified news analytics platform to the test. I placed a market order for 200 shares with stop-loss set at $260 per share, and my take profit at $400 per share. My price was filled an at an average of $315.97 per share.
For my second trade, I decided to short sell against the top downgrade of the day. Nu Skin Enterprises (NUS) was the top downgrade of the day. The stock’s rating was changed from buy to hold by Deutsche Bank, and according to News Quantified, has historically dropped in price 6.02% in the past upon receiving similar ratings.
Upon opening the price chart, NUS was indeed down on the day, so I decided to play my trade. I placed an order to short 200 shares of NUS at the market, with a stop-loss at $78 and my take profit at $60. My price was filled at an average of $73.93 per share.
News Quantified: Day Two
At the open of the market the next morning, I decided to utilize the formula that I had used the day prior, and only trade the top upgrade and downgrade of the day using the day trading news feed.
Loxo Oncology (LOXO) was the top upgrade of the day. The stock had been upgraded from a equal weight to an overweight rating by Morgan Stanley, and had seen gains of 5.49% in the past based upon similar ratings.
I placed an order for 200 shares of LOXO to be filled at the market, with my stop-loss set at $110 per share and my take profit set to $150 per share. My order was filled at an average price of $127.90 per share.
The top downgrade of the day was Big Lots (BIG). The stock was downgraded from a strong buy down to outperform by Raymond James, and historically dropped 6.32% upon receiving similar ratings in the past.
After opening the price chart for BIG, the price was already on the decline after market open, so I then decided to place my trade. I shorted 200 shares at the market, with my stop-loss set to $43 per share and my take profit set to $35 per share. My order was filled at a market price of $41.99 per share.
Now that I had a feel for how the system works, I was now comfortable setting myself up for a longer hold time. All of my past trades had been for a one day hold, my future trades would now be set to five days.
Samuel Adams (SAM) was currently the top five-day upgrade. The stock’s rating had moved from a sell to a neutral rating by Goldman Sachs, and had historically seen a price increase of 2.31% per share according to News Quantified upon receiving similar upgrades in the past.
I place an order once again for 200 shares at the market, with my stop set to $200 per share and my take profit set to $230 per share. My order was filled at an average price of $216.75 per share.
I now had a total of five positions, and overall was at an unrealized loss in my account. My account value was still $100,000, but the equity was down due to my current NFLX position. However, I was still optimistic, and was eager to keep testing the news analytics platform.
News Quantified: Day Three
One of the benefits that I have come to realize using the News Quantified news analytics platform is not having to be behind my computer watching price charts for eights hours a day in anticipation of a trade. I can simply log on right before market open, and see all the top upgrades and downgrades for the day right on my dashboard. No searching Google, no waiting for Yahoo Finance to update, no hassle at all.
As of this morning, my account was up a total of over $4,000, with my biggest winner now being NFLX which was up a total of $5,296 in two days. One of my first trades ended up being a loser, BIG, at a total realized loss of $202.
The upgrade that I decided to trade with a month hold was Xcerra (XCRA). The stock had been upgraded from hold to buy from Needham, and had since in an increase in price of 13.38% historically based upon similar ratings.
I purchased 400 shares at the market, with a stop at $12 per share, and may take profit set to $15 per share. My order was filled at an average price of $13.02 per share.
This would be the only trade that I made today, as there were currently no other positions that interested me, and I was not quite ready yet to close out my existing positions.
So far, the news has been great, the platform has been great, and the profits have truly been outstanding.
News Quantified: Day Four
The market had just opened, and after reading the news reports on my dashboard, I had found the ideal trade I was looking to make. Legacytexas Financial Group (LTXB) was the top downgrade of the day. The stock had been downgraded from outperform to market perform by Raymond James, and had historically seen a 6.32% drop in price based on similar ratings in the past.
I placed my sell order at the market for 200 shares, and positioned my stop at $44 a share, and my take profit at $35 per share. My order was filled at an average price of $40.22 per share.
The top-ranked upgrade of the day was Norwegian Cruise Line Holdings (NCLH). The stock had been upgraded by Deutsche Bank from a hold to a buy, and had seen a price increase of 5.89% in the past based up similar reportings.
My market order was placed for 200 shares, with my stop set to $53 per share and my take profit at $65 per share. The order was filled at an average price of $55.49.
Currently, my existing positions are up very nicely, as I am to date up a total of $6,617.45 since I began this review.
I decided to start taking some profits, and closed my position in LOXO. I sold my shares at the market at an average price of 113.67 per share, I now have one win and one losing trade, with the rest of my trades still currently open and profitable.
News Quantified: Day Five
When I first began this review, my trading account had a balance of $100,000. After five days for trading nothing but the top upgrades and downgrades of the day, my account now stood at a total net worth of 104,507.70. This is a 4.5%, or $4,569.70 increase than what I had started with five days ago. At a one time cost of just under $1,000 to get started with News Quantified and 6-months of news analytics platform access, I not only paid off the cost of the program in one week, but still had money left over to reinvest in my future trades.
What I appreciated The Most
The interface was naturally intuitive to use, and the wealth of resources available through the News Quantified news analytics platform was truly exceptional. Having the morning news reports delivered to my dashboard every morning saved me hours from having to research historical trends on my own, and proved to be a highly profitable indicator of future market trends. Having grown my account by nearly $5,000 over the course of five days, it is no wonder that the news quantified news analytics platform was originally only available to private equity and hedge funds before becoming available to the general public. This platform truly makes it easy to trade the news.
News Quantified: My Overall Impression
The News Quantified service is everything that I hoped it would be, and so much more. At a cost of only $1,000, the program had more than paid for itself after my second day of trading. Knowing what I know now, I would have gladly paid double the price now knowing how effective the News Quantified news analytics platform truly is. There was a reason this news analytics platform was initially only released to large hedge funds, just as there is a reason that the biggest names on Wall Street all use the News Quantified service to this day.
For new investors who want to take a strong opening stance to learning to trade the markets, or professional traders looking to find new and innovative ways to increase your monthly returns, the News Quantified news analytics platform will not leave you disappointed. Considering that qualified traders can register for a webinar and learn how to use the web-based platform at no additional cost, you would be crazy to not at the very least not give the News Quantified platform a try.