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 NIFTY-50 Index over a 1year duration.

Based on the Instrument trend chart shown above, Buy-and-Hold investors in NIFTY-50 faced a maximum drawdown of -17.23%, a fall from 18,477 to 15,294. However, during this period, the NIFTY-50 experienced an overall up-trend with a growth of +18.08%. Notably, Spotalpha’s algorithms were able to identify both Bullish and Bearish signals during this period. The Bullish signals proved to be more profitable than the Bearish signals. The net profit generated from Bullish signals amounted to +20.94%. This means that an investor investing using only Spotalpha’s bullish signals would have generated more returns without much risk or volatility on their equity curve.

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 India
How to Use Alpha Builder (YouTube)