Anyone tried trading based on sentiment score based on FOMC minutes ? can u confirm if u get a good CAGR returns ? This is part of trading using LLM course. I dont see a good +ve CAGR returns .so wondering if anyone tried and can revert?
I get CAGR -6.78%
and its supposed to be +ve returns for the strategy CAGR 8.29%
Else there would be no use of the strategy
Hello Swanand,
Since this strategy relies on a sentiment score threshold to determine entry and exit points, its performance varies with changes to that threshold.
In the backtest from January 2022 to July 2024 on the SPY ETF, the strategy generated a CAGR of 8.29% with a sentiment threshold of 0.1. Adjusting the asset, backtest period, or threshold will affect its performance. You might consider experimenting with different sentiment score thresholds, as this could potentially change the returns. Please let us know if you have any further questions on this.