Fintech firm Acuity Trading announced today the launch of its latest innovation, the Market Alerts Sentiment Indicator.
Drawing on the success of their existing sentiment trading tools, the Market Alerts Sentiment Indicator uses the same sophisticated technology to identify market sentiment towards any given stock from the global news and online investment community but goes further by identifying when similar market sentiment levels or ‘patterns’ have occurred in the past.
These instances are analysed to determine what the effect on price was within a particular timeframe to provide traders with a clear indication of what could happen again under the same conditions.
“This product embodies the predictive capabilities highlighted in our recent research conducted by Barcelona University on our sentiment data and is an example of what opportunities lie in big data.” says Andrew Lane, Acuity’s Managing Director. “The Market Alerts indicator is specifically designed to surface new trade ideas that the rest of the market won’t easily have identified because the trends are too inconspicuous without technological capabilities.”
The Market Alerts, like all Acuity’s products, is a highly visual tool with simplicity of use at the forefront of its design. Easy to install, covering all asset classes and featuring a range of fully customisable options including a confidence level, the alerts can be set to display only those which match traders’ risk appetites. Proving a powerful tool on its own or when used in conjunction with other indicators, the Market Alerts product is proving popular amongst Acuity’s clients who have been trialling the service during its development.
Brad Alexander, VP of Sales at Acuity Trading, commented on some analysis of recent alerts. “Recent results for hourly alerts on EURUSD were correct in 9 out of 11 cases during a 24 hour period with most leading to significant price movement. In a similar time frame, 4 out of 4 alerts on the Dow Jones index were also correct and in the month of September, our results on Crude Oil were correct in 8 out of 9 cases.”
“This level of confidence in an indicator is truly exciting,” continues Alexander. “What we are seeing is the movement of sentiment from an ambiguous idea to something tangible and actionable.”
Contributed | what does this mean?