While researching another project, I ran into these two posts discussing news analytics.
http://ftalphaville.ft.com/blog/2010/01/26/134561/rise-of-the-news-reading-machines/
http://ftalphaville.ft.com/blog/2009/11/04/81356/why-trading-machines-dont-like-news-releases/
One quote that particularly caught my attention was this
"If something big comes out on a company, computer traders can set up a sort of circuit-breaker which trips and pauses the computer trading programme."
This echoes something we've been hearing a lot from the people we speak to. A first approach to taking advantage of news and pre-news (government filings, twitter, etc) may be in using these signals to alert a trader that their trading strategies might be inappropriate for a given time period. Perhaps if you know that a major product release, government approval or court case is being announced on a specific day, its not a day you trade that stock with your established trading strategies. At least until after the initial activity around the event.
Since assessing future events is one of the things we do, we'll be taking a closer look at this in a future blog post. If you'd like to learn more about our media analytics check us out over at Recorded Future.
Wednesday, June 30, 2010
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This is so interesting. This is like what carnivore used to do. If the public has this I wonder what the government is using now. I would really like one of these programs for my personal research. Could you imagine, type search terms and have it all analized for you. Darn, hey does this work for laws too. Like if I have a case, with a legal theory. I bet y'all could make a program via the Same kind of idea for legal application as such.
ReplyDeleteCrawl all old case law and codes. Then use a set number of tags and algo's to create a analists of probable legal outcome. I mean, that wuold be great. Legal issue, facts, pre conclusions then enter and bam analized for y'all. Scaring me, I might not have a job here in the future.
http://rideriantieconomicwarfare.blogspot.com/