STP Algo Trader - User Blog

Vol. 1 Issue 15: Adapting to a New Market

April 09, 2025

Welcome to STP Algo Trader User Blog!

Each week, we'll bring you a unique perspective from a team member or STP user, detailing how they use the platform to power their trading.

We aim to demonstrate Signal Trader Pro's many use cases for everyday investors.

If you’d like to contribute a piece, please email us at [email protected] or just let us know in the WhatsApp! group.

Even if you just have an idea for a blog, we’d love to hear it.

Now, let’s dive into our fourth issue, which was brought to you by superuser James Welch.

Hi all! James here again.

I wrote last week’s “user blog” on the precipice of Trump's tariff "Liberation Day." At that point, many of us thought the tariffs were priced into the market already.

Well, that was far from true.

So, today, I’m going to write a bit about some updates STP is making and how I plan to use the platform moving forward.

First, however, we should address the BIG picture with the market.

So, what’s changed? Quite simply, EVERYTHING has changed.

The tariffs announced last Wednesday were far more severe and wide-ranging than anticipated.

While many countries, like the United Kingdom, received a baseline tariff of 10%. Other countries, however, received far higher tariffs.

As we all know, global markets did not react well at all.

In fact, between Thursday, April 3, and Friday, April 4, 2025, the three major U.S. stock indices experienced historic declines:​

  • The S&P 500 fell 10.5%, marking the fourth-largest two-day drop since World War II. ​

  • The Dow Jones Industrial Average declined over 300 points during the same period. ​

  • The Nasdaq Composite entered a bear market, indicating a decline of 20% or more from recent highs. ​

To put those percentages into perspective, that two-day drop in US equities was the fourth largest since the end of World War II, surpassed only by:

  • The 1987 stock market crash, known as "Black Monday."

  • The 2008 global financial crisis that brought down Lehman Brothers

  • The initial Covid-19 panic in early 2020.

So yeah, we just lived through market history. It's mind-blowing, and I'm still processing it.

What’s now evident is twofold…

First, the stock market uptrend that we’ve been in is broken. Only time will tell if we’ve entered a period of consolidation or a new downtrend.

Second, the tariffs and reactions to them are generating a tremendous amount of market volatility.

So great, the market is broken, there are tariffs everywhere, and we may enter a recession. Yikes!

Well, lucky for us, the market never rests, and neither does Signal Trader Pro.

The fact is, no matter what happens today and moving forward, there will be ample trading opportunities.

And, as we’ve mentioned many times, STP was designed to work in bull, bear, and even choppy market conditions.

That said, given the increased market volatility, things could get overwhelming. So STP is making some adjustments to ensure the system delivers only the strongest signals for potential trades.

First, moving forward, STP will only generate a new “Entry Signal” if the stock’s RSI trades below the 25 level and then back above 30. This compares to previously, when STP looked for the 30 level.

Second, STP will ONLY be looking for stocks with a score of "14" or "15" in the BULLSEYE category. During times like these, it’s important to be more selective.

Last but not least, STP will also be closing out many “Open” signals. This will generate both profits and losses. While this is painful, resetting the system for optimal performance in this new market environment is necessary.

As for me, as I mentioned last week, I raised some cash by closing out some losers as well as winners.

I haven't made any moves recently. However, I'm happy that STP is adjusting to the new market environment.

As I write this, news flashes across my screens regarding positive trade talks with Japan, South Korea, and other key trading partners. That gives me hope that the worst is behind us.

That said, I’m excited to dive back into the market.

In fact, STP delivered its first “Bullseye” signal with the new criteria applied. It’s none other than Broadcom Inc. (NASDAQ: AVGO).

The semiconductor and software giant received a 15 score, the highest available. I'm going to see what the day brings, and I may start a small position in AVGO.

So, that’s my plan. What about you?

I’m just one guy in an ocean of investors. Now that you’ve heard how I’ve been using Signal Trader Pro, we’d love to hear how you use it.

If you’d like to tell your story, please email us at [email protected] or hit us up in the WhatsApp! group.

Yours truly,

James