Twitter Trading Platform Coming Soon
Paul Hawtin, who was reportedly behind the first hedge fund to utilise Twitter data for trading purposes, is now set to make this technology available for users of an online trading platform. The company behind this is called DCM Capital and the associated trading platform will include a market sentiment tool which is touted as an “innovative and alternative ways of quantifying human emotion”.
This article from efinancialnews advises that the new platform is going to be initially deployed with around 250 UK equities, major Forex pairs, and commodities contracts.
Hawtin, who was the chief executive of DCM, advised: “Today, social media creates a vast amount of information and it has been proven that the sentiment derived from it can predict stock market movements. For the very first time, we are connecting this information source to the trading community, opening up the universe of social media data so traders can make more informed buying and selling decisions.”
The technology behind this platform apparently works on the premise that the number of emotional words, as tweeted on Twitter, can be utilised to help predict market moves. The hedge fund had previously used this technology on the Dow Jones Industrial Average, making a 1.85% return over the one and only trading month. The new platform also allows users to set alerts and pre-defined limits for when sentiment readings reach a specific level.