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Hedge fund managers betting Twitter will give them an edge in rapid trading (telegraph.co.uk)
7 points by tortilla on June 25, 2009 | hide | past | favorite | 6 comments


The essence of a good trading strategy that leveraged Tweets would be to perform extensive back-testing on which sources were remotely influential and/or reliabe. trading decisions would never be made based on an unproven source. At the very least, a trader would get a jump on knowing when something major was going on at a macroeconomic level that would indicate stopping/switching off their trading model. Reliable Tweeters would become more prevalent as the potential to build brand and reputation for value gain - e.g. promoting themselves or their company, potentially a research firm, is extremely motivating.


Ok, Streambase, maybe you'll pick this up. Most of my money is in the Royal Bank of Canada and

"Streambase – whose client base includes Royal Bank of Canada"

makes me, for the first time in a decade, want to switch.


Check out www.predictwallstreet.com... people are using all kinds of social information to trade stocks.


if i tweet this headline, someone makes a losing trade based on reading it, and loses money in a transaction from which i profit indirectly...

is there a name for that?

I'd ask a lawyer, but they might answer me.


tl;dr headline says it all, except for this:

"Markets tend to buy on rumour and sell on facts," [Nasir Zubairi, a trading product developer] said.

This deserves widespread replication.


this is such a bad idea -- people will set up bots spewing fake information and boiler-room 'stock tips' of the sort already passed around in junk emails




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