What is Trend in Instrument Analysis?

Instrument Trend helps investors identify the current trend of a specific symbol. It is one of the six Instrument analysis tools that are part of Alpha Builder’s suite of 19 tools. Instrument analysis tools allow investors to research an individual stock, ETF, index, sector or investment theme.

The following chart shows the trend of S&P500 Index over a 1 year duration.

Based on the Instrument trend chart shown above, Buy-and-Hold investors in S&P500 experienced a maximum drawdown of -25.43% over the last three months. It delivered +1.35% during this bullish trending period. Notably, Spotalpha’s algorithms were able to identify both Bullish and Bearish signals during this period. There were both Long and Short signals during this period, while the long signals were significantly more profitable than the short signals. The net profit from Long signals was +0.48%.

Alpha Builder subscribers can either add stocks that they are interested to follow trend signals on to either their portfolios in Portfolio Optimiser or ‘follow’ them in Alpha Reports. The trend signals of instruments an investor follows are available on the Trend Alerts page. A sample screenshot from the trend alerts page is shown below.

In summary, Instrument Trend is a tool that uses Spotalpha’s high performance trend algorithm to identify profitable investment opportunities for trend based investors. These trends are available across all stocks, ETFs, indices, sectors and investment themes in the market.

Follow these easy steps to use Alpha Builder’s tool “Trend” to identify the current trend of a symbol:
1. On the home-page, click “Alpha Builder” or select sub-menu item “ALPHA BUILDER” under the “TOOLS” head of the “PRODUCTS” menu.
2. Scroll down the page and click on “Trend“.
3. The trend chart with bearish and bullish periods of NIFTY-50 is displayed by default.
4. Click on the text-box with text as “Symbol“, type the symbol and click on one of the presented options.
5. Now click on the hand lens icon.
6. The chart with the bearish and bullish periods for that symbol will be displayed.

Useful Links:
Instrument Trend US
How to Use Alpha Builder (YouTube)