Course Name: Natural Language Processing in Trading, Section No: 4, Unit No: 4, Unit type: Quiz
How is the sentiment score positive , the last signal is at 10:30 ie after 9:30
Hi Ganesh
Great question! Notice that we are determining the trading action at the start of Day 2, i.e., at the market open (9:30 AM). At that point, the only available sentiment signals are:
- 8:00 PM Day 1 → +0.31
- 7:30 AM Day 2 → −0.20
The 10:30 AM score comes after the market has already opened, so it cannot influence the opening trade decision, we wouldn’t have that information yet at 9:30 AM.
The relevant overnight sentiment is therefore positive, leading to a Buy action at open.