The Sentiment Trader is based on live sentiment data from www.fxblue.com (part of the FX Blue group), and enables traders to take real-time market sentiment into account in their trading decisions. Key features include:
- Current long/short sentiment for an instrument such as EUR/USD
- A dashboard of current sentiment for multiple symbols
- A chart of historic sentiment plotted against price
Traders can use the sentiment information as confirmation of trading decisions, or as fail-safe (e.g. don't take a short trade if sentiment is above 80%).
Some traders also attempt to identify patterns in the sentiment and subsequent price movements, and make trading decisions based purely on the sentiment alone.
Further options in the Sentiment Trader app include the following:
- Choice of timeframes for historic sentiment and price, e.g. M1, M5, H1
- Customisable view of current sentiment (gauge, pie chart, dial)
- Customisable view of historic data (candlestick, line etc)
- Dashboard of current open position in each symbol, as well as sentiment
- Simple deal ticket for placing orders directly from the Sentiment Trader, without needing to go back to the underlying platform
The sentiment data is based on real-money accounts publishing their results to www.fxblue.com (though this can be replaced with a broker's own feed if they are able to provide it, and have sufficient active traders to produce meaningful percentages).
The list of available symbols is determined by popularity, i.e. the number of people trading them. For example, sentiment data is not available for CAD/JPY because there are typically too few traders with an open position to calculate a meaningful percentage.
If a trader has multiple open orders in the same symbol, then the sentiment calculation uses a single net figure for the trader's positions. For example, if a trader has an open buy order for 1.5 lots and an open sell order for 0.7 lots, then they are treated as being long. The sentiment percentage is not weighted by volume (because www.fxblue.com has a few users with very large accounts and trade sizes). A trader who is long 0.1 lots has the same effect on the figures as a trader who is long 50 lots.
Please note that the sentiment data is also available in the Alarm Manager app, enabling traders to create alerts about the sentiment data, and even carry out automatic actions such as placing orders when sentiment thresholds are reached.
FX Blue Labs can provide videos about each app. Broker clients can either use generic un-branded videos, like this example, or can commission branded versions which FX Blue Labs will arrange and pass on at-cost from the video company.