🐙Strategy "Dynamic topics"
A strategy based on the analysis of the news background of topics (related news group).
Last updated
A strategy based on the analysis of the news background of topics (related news group).
Last updated
Dynamic Topics -- is a widget where we group all news based on their meaning. Each group describes a specific event or an entire topic currently present in the information space. In our experience, dynamic topics help make decisions with a time horizon ranging from a few days to several weeks.
The workspace in the screenshot contains three widgets: the main one (Dynamic Topics) and two auxiliary ones (Round Sentiment and TradingView). The screenshot shows an example for BTC.
In the settings of the Dynamic Topics widget, we select the market (finance or crypto) and the period for which topics are gathered.
Let’s provide the first example with Solana (SOL). We’ll choose the "crypto" setting and a "7-day" period. Then, we’ll sort by sentiment.
A large topic of positive news about Solana appears at the top.
This topic includes various individual news events and expert analyses, with a dominance of positive sentiment. This serves as a good signal to open a long position.
For the second example, we’ll select the "finance" setting and the "7-day" period. Similarly, we sort by sentiment. This section allows us to assess the situation in the stock market.
The third card from the top is about Disney. It contains 5 news stories, all of which are negative.
News 1: An analyst expects the stock price to drop further from $91 (current price at the time of the screenshot) and would consider buying if the price reaches $65-75.
News 2: Disney World (theme park in Florida) is forced to lower prices due to declining attendance, but this move may backfire as it compromises quality.
News 3 and 4: Other negative news.
This serves as a good signal to open a short position.
Dynamic topics evolve and change over time. Some gain additional news, some disappear, and others may split into two topics. We monitor how the situation develops and regularly check dynamic topics (3-4 times a day).
Criteria for closing the position:
The sentiment of the topic starts to weaken or shift to the opposite direction. It’s better not to wait for an opposite sentiment—by that time, it’s usually too late to close the position. As soon as the signal weakens or becomes ambiguous, we close the position.
The topic disappears, and no similar topic exists anymore. News about our stock/currency moves to the "Other" category or into larger themes.
The price reaches the target price (the target price could have been selected as an average or median between expert targets within one topic).
Results for SOLUSDT over 20 days from July 9 (open) to July 29 (close):
Important: The SOLBTC chart confirms that the profit was specifically generated by the Solana position (according to dynamic topics), and not just by the overall growth of the crypto market.
IMPORTANT! Trading involves risks. The user is solely responsible for their actions or inactions when using the described trading strategy. The strategy and its description are for informational purposes only. The information provided here does not constitute personalized investment advice. News, articles, expert comments, research, forecasts, and other information are presented without considering any specific investment profile, and the mentioned financial instruments or operations may not meet the expected returns, investment horizon, or acceptable risk levels for any particular user. Company 1EX is not responsible for any potential losses resulting from trades based on the described strategy or investments in the financial instruments mentioned in this publication.
