Trading Strategies Based on Twitter and News
Hey peoples, anyone out there using twitter as a source of news to drive trading strategies? Like tracking influencers to get real time news and then trading based off of it? (a al Musk tweeting about Tesla going private at $420, or Trump tweeting about tariffs, or Kylie Jenner tweeting about snapchat)
There are algorithms scanning for news like these all day... As a discretionary trader, it's impossible. I guess the best way to make money is to trade the volatility based on the news.
What about when you see a trend, but its not necessarily one fit for algos? For instance, lets say that you have a theory about a certain influencer's tweets, with certain keywords, and its relationship to stocks. You backtest it, see that there is a relationship, and then set up live alerts for tweets with certain keywords or sentiment, allowing you to make discretionary trades. Now this could become a bit too much if this was your only strategy, but what about as a supplementary one to your main one?
You can't really backtest something with only one or two sample points like the Musk tweet
Yeah lets say Musk DID have funding. There is no information / sentiment / nuance in that tweet (especially looking ONLY at those tweets) that would make you believe him or not. Your so called back-tested strategy could have lost you millions around the Musk situation.
Twitter is a free platform that can benefit your trading if you use it correctly. ... about share prices can significantly improve stock trading strategies. ... law enforcement fusion centres to access news alerts based on tweets
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