Anyone who invests in stocks usually spends a lot of time looking at two things:
Price — what the stock is doing.
Fundamentals — what the underlying business is doing.
We have endless tools for both: charts, moving averages, earnings estimates, balance sheets, valuation models.
But there’s another piece of information investors consume every day:
Headlines.
And most of us still process them almost entirely by instinct.
Good headline. Bad headline. Important. Irrelevant. Already priced in. Maybe it matters tomorrow. Maybe everyone forgets about it by lunch.
I wanted to see if there was a more objective way to use headlines as part of the investing process.
So I built one.
The question I’ve been testing is simple:
Can headlines be classified in a way that actually helps make investment decisions?
Apple has been my primary test case so far, although we’re already testing other stocks, and other markets.
And after a year, I finally have enough results that I think they’re worth sharing.
The six-month number might actually be my favorite result.
Why?
Because we lost.
Buy and hold returned 15.67%. The strategy returned 14.86%.
That’s what testing something is supposed to look like.
I’m not interested in building a back test that magically wins every period. I’m interested in finding out whether headlines contain useful information, when that information matters, and how quickly its usefulness disappears.
Sometimes the answer may simply be:
You should have owned the stock and gone to lunch.
That’s useful information too.
Now I Want Other People to Test It
I’m opening the beta to subscribers.
If you’re already a subscriber, beta access is included at no additional charge.
(Just DM me)
The subscription is $5 a month.
I’m not promising a magic trading system because that’s not the goal.
I’m trying to answer a question:
Can we measure demand through headlines?
That’s what I’m building.
And if the results continue to be interesting, we’ll keep going.
If they don’t, we’ll learn something from that too.
And if it works way too well, I reserve the right to shut down the beta, move to an undisclosed location, and deny that any of this ever existed.
Come test it with me.
Have a great Friday,
Eric