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Is anybody using social networking data for sentiment analysis in their trading strategies?

(Last Updated On: August 24, 2011)

Is anybody using social networking data for sentiment analysis in their trading strategies?

Countless people use sentiment analysis with news articles to detect market mood, it seems now many people are trying to integrate publicly available social data (from Twitter for example) into trading strategies; using sentiment as a trade indicator. Is anybody here doing this? Do we think there is any significant advantage here or is it likely to consist of a lot of ‘junk’ posts that just add to market noise and make life harder? Would love to hear your thoughts on this in terms of ways to successfully implement this kind of analysis into a strategy.

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Are you familiar with the recent academic paper discussing this very subject, the author has subsequently started a hedge fund trading the research paper idea. I have forgotten the details of who the author is but a google search should provide the answer.

I think this is an exciting new era of research for sentiment traders like myself. There will be lots of new ideas and tools coming forward on this topic. I have for example an app on my iPhone called WS Scanner which supposedly does something similar. I wouldn’t trust the app, but I think it speaks to the future of the information of social media

 

 

NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

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