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  • The Trading Robots Really Are Reading Twitter

    From cnbc.com

    Let's call it the Twitter Skitter. When the market briefly skidded after a hacked AP Twitter account reported explosions at the White House, we saw the first real-time demonstration of robo-trading riding on the back of social media. The plunge in the market was so quick that it obviously was not the result of individuals reading the phony news and deciding what action to take. Computers were making the trades—or, more precisely, ending the trades. "It's not so much that the computers initiated trades. What happened is that they canceled the orders, so the bids come out of the market. That causes a ... (full story)

I'm pretty sure all news is gathered as a new feed that some robot scanning twitter.com
When the facts change I change my mind, what do you do sir
not true, this tweet worked only because real human retweet it many times.
Robots will read your mind next. See Batman movies?
Market like Terminator
I wonder if the people who hacked it made money from the volatility.

Quoting magelordmojo
I wonder if the people who hacked it made money from the volatility.
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
This is nothing new, there's hundreds of algos 'out there' that have used sentiment gathered by social media.
It's an interesting article. I notice that it was all the JPY pairs which reacted (and the AUD to a lesser extent). I suspect that this was because Tokyo and Sydney were asleep at the time, so that algorithm trading (robots) had a free hand. JPY and AUD aren't only traded at "home" of course, but that's where the greatest interest is.
  •  Guest
  • | IP XX.XX.118.149
the robots are far cleverer than you realise, they are starting the rumours.
Damn Skynet,

I'll be back...

Aaaarrrggggg

Lol...
Come with me if you want to live....
Quoting Guest
the robots are far cleverer than you realise, they are starting the rumours.
LOL
They're not just "self aware"; they also got greedy?
Just to give you a taste of what's out there (non retail) Thomson Reuters recently won an award for the social media aspects on their platforms...

With behavioural finance playing an increasing role in investment and trading strategies, Thomson Reuters further expanded its news analytics service last year to include psychological analysis of news and social media. Thomson Reuters MarketPsych Indices analyze human emotion associated with specific countries, commodities, currencies and economic sectors. This provides a “top-down” understanding of the macroeconomic environment in a way not previously possible, providing the context in which many other market signals operate.

http://www.mondovisione.com/media-and-resources/news/thomson-reuters-wins-best-use-of-social-media-at-fstech-awards-2013/
@Squeeze: Interesting. Thx
Their marketpsych indices include a "bubbleometer"! http://goo.gl/qhl9l
I'm not convinced that sentiment is a leading indicator of price. I'm still of the view that most market participants are sheep, but who am I to say!
PK
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  •  Guest
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  • Posted: Apr 23, 2013 8:21pm
  • Submitted by:
     Newsstand
    Category: Entertainment News
    Comments: 13  /  Views: 4,897