ALGORITHMIC FX TRADING
>>>
services. For example, RavenPack offers something which Gonzalez calls “expert consensus”, where the algorithms will try to presume how an expert analyst would interpret a news story. And market prices are also factored in to assess how the market has reacted to a news story.
“Our approach is very transparent and allows some flexibility for users,” says Gonzalez. “We are a provider of qualitative market data. We provide a data set with multiple techniques and multiple scores and clients can decide how much weight they apply to each of these. We continue to add more data to the same stories. Te hardest part for the client is to then apply that data to its trading strategy through quantitative analysis.”
RavenPack only works with professional media, says Gonzalez, which excludes a lot of social media. “Te biggest problem with social media is the amount of noise. Following a big event, say a terrorist attack, people will use Twitter and certain words will be used so many times as to create a whole load of false positives. But the technology doesn’t yet exist to filter out the unhelpful ones. So it is not so much the volume of data but the uncertainty around the usefulness of it.”
Social media is now more prominently used in the corporate world. More companies have a Facebook page and a Twitter account, for example. Tis does not necessarily mean that the use of social media has become more professional but the ability to distinguish those with something genuine to say from those that are essentially spamming will be crucially important for any MRN algorithms working with social media, says Gonzalez. He cites the use of verified Twitter accounts (the social media equivalent of digital certificates) and services such as Klout (a
110 | july 2012 e-FOREX
Armando Gonzales
“Te biggest problem with social media is the amount of noise. Following a big event, say a terrorist attack, people will use Twitter and certain words will be used so many times as to create a whole load of false positives. But the technology doesn’t yet exist to filter out the unhelpful ones.”
provider of social media analytics that can measure the influence a social media user has within their network) as examples of the progress that has been made in this regard. “We need more of this in social media so that we can separate the news from the noise.”
It is still very early in the life of social media, says Gonzalez. “Te technology exists to detect patterns
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168