STP Algo Trader - User Blog

Welcome back 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 this week’s issue, brought to you by team member and amateur trader, Jessica Cadby.

It’s been an interesting start to the week in the stock market.

After two back-to-back “perfect weeks,” I was practically drooling like a dog waiting for dinner. The temptation to jump back in was very real. But I’ve been in a sort of trading “fast”—and it looks like the end is finally coming into sight.

The reason I’ve had the conviction to hold off these past two weeks (besides the lack of signals) is thanks to the wisdom and insights packed into the STP Algo Trader newsletter.

Today I want to focus on one category in particular: the Market Insights series.

This series has become one of my most trusted stock market advisors.

It doesn’t just give a market overview—it cuts through the noise and helps me figure out what I should actually do as a trader. It’s helped guide my decisions on which signals to act on, how many positions to add, and whether to take a small nibble—or a full bite.

Here’s what I mean…

Back in the March 18th issue, the STP team pointed out that besides trade signals, the software also gives us insight into what is happening in the overall stock market.

In this case, they showed how the number of signals on the “Watchlist” can tell us a lot about the state of the market. Here’s the chart they shared – 

As the market corrected, the number of stocks hitting the Watchlist spiked and was followed by an increase in entry signals. In other words, the system flagged opportunity right when it was the best time to buy the dip and fear was at its peak.

It’s easy to say, “Buy the dip.” But in reality? Most traders panic and sell near the bottom.

This insight gave me the confidence to lean into the system—when almost everyone else was leaning away.

This strategy worked beautifully while the market was in an uptrend (which, for the record, is historically about 80% of the time).

Then sh*t hit the fan!

Like I mentioned in a previous blog – when early April came, I suddenly didn’t recognize the market anymore. Nothing felt familiar. I had no idea how to adjust my strategy or if I just needed to start selling everything like everyone else.

Enter the April 8 Market Insights issue.

It included this chart of the CBOE Volatility Index (aka the VIX) -

The STP team laid it out plainly: The uptrend had ended, and the strategy needed to change—but not in a panic-sell-everything kind of way.

They broke it down: in volatile markets, you don’t need a lot of positions—you need a few great ones. In high-quality names, at deeply oversold levels.

So that’s what I did.

I trimmed down my positions strategically, waiting for the market to recover enough so I could exit some positions with gains and others with minimal damage. I reallocated my portfolio toward quality and patience.

That shift protected me if the market continued falling—and gave me a shot at upside if it snapped back.

One of the biggest lessons that stuck with me – “Cash is your greatest superpower during volatility.”

Let me tell you, I wish I had more cash at the time!

Fast-forward to this week...

The most recent Market Insights issue pointed out something interesting: After two “perfect weeks,” the odds of a third were... slim. In fact, the data they shared (going back to 1999) showed it’s never happened.

That further explained to me the recent lack of signals and why patience is the play, even when FOMO is coming on strong.

The price action these past two weeks was too one-sided to last—and sure enough, it’s started to unwind this week.

As tempting as it was to start deploying cash the second the market showed some red, I’m sticking to the STP strategy. I’m waiting for these now-overbought names to cool off and am primed for the moment real weakness shows up again.

Whether the market continues to normalize and we go back to stock-specific moves, or we retest the April lows, I’ll be sitting here with cash and a plan—ready either way.

The takeaway?

Letting the algorithm do all the work is what the system is built for and is great – don’t get me wrong.

But pairing the software with the Market Insights newsletter is giving me the tools to develop my own personal edge. It’s empowering me not just to trade, but to think like a trader.

Have you found the STP Algo Trader Market Insights articles helpful? What are your favorite insights? Drop a comment or let me know in the STP WhatsApp group chat and let’s connect!

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