ActiveTrader 2013-01 Google Trends (individual stocks) [Rev.B] by Eugene

Google Trends: Individual Stock Keyword Rank system [Revised]

Note (2017): Google Trends has been restored, losing Weekly scale to Google's protection against automated downloaders. Now that the data is Monthly, old rules no longer apply and have been adjusted.

Note (2013): after the magazine publication, Google has considerably changed the way Google Trends are calculated. Consequently, old rules no longer apply. We had to adjust the strategy to the new calculation.

This system uses Google Trends for buy/sell signals. For background and theory, see original magazine article: Google Trend Sentiment Systems.

Uses Weekly scale

System rules

  1. Buy at stop next bar at the 10-month highest high price if Google Trends filter is bullish (trend entry).

  2. Buy at market next bar if the Low price has been declining for 10 months in a row or more if Google Trends filter is bearish (counter-trend entry).

  3. Sell trend position at stop next bar at the 12-month lowest low price if Google Trends filter is bullish.

  4. Sell counter-trend position at market next nar if the High price has been rising for 4 monthly bars in a row or more and Google Trends filter is bearish.

 

Google Trend filter composition rules

The Google Trends rank is determined based on a company’s search rank represented by either the stock ticker itself or the company name, if the ticker is ambiguous (“cat”) or rare (and consequently, missing in Google Trends output). Below is the disctionary of ticker/keyword pairs our system was configured with: "AAPL" = "Apple", "BA" = "Boeing", "C" = "Citigroup", "CAT" = "Caterpillar", "CSCO" = "Cisco", "DIS" = "Disney", "FITB" = "FITB", "HPQ" = "Hewlett Packard", "IBM" = "IBM", "INTC" = "Intel", "IP" = "International Paper", "JPM" = "JPM", "KO" = "Coca Cola", "MSFT" = "Microsoft", "SBUX" = "Starbucks", "T" = "AT&T", "WMT" = "Walmart". It is considered valid when its value is greater than 0.

  • Index is bullish: composite Google Trend rank value for the current week is above its own 5-week simple moving average.

  • Index is bearish: composite Google Trend rank value for the current week is below its own 5-week simple moving average.

Author: Eugene
Category: Fundamentals
Creation Date: 9/1/2017
Licence: Freeware
Availability: Globally
Instructions for Script Download
  1. In Wealth-Lab client software, open the Strategy Explorer (Ctrl+O)
  2. Click the "Download..." button
  3. Click "Begin Download"