2009 Oct 26 - Mon

Machine Readable News and Algorithmic Trading

A-Team Research has released a special report called: Machine Readable News and Algorithmic Trading.

I've writing some code to accept a news release feed from DTNIQ/IQFeed. This report comes in handy for supplying some ideas on how to analyze and make use of the news feed. Here are some examples:

• When generating trading signals for high frequency traders and other alpha-seekers, it can be used to build sentiment measurement applications, stock screening applications and back-testing systems for trading algorithms.
• It can be used in support of market surveillance systems.
• This translates into simple stock-screening applications for individual securities or lists of stocks.
• It can mean the analysis of macroeconomic data to identify trends, correlations and other relationships.
• It can involve scanning key parameters to measure market sentiment.
• It could predict potentially volatile trading days, indicating which stocks or types of stock may be most affected.
• It can also be used to quickly derive directional signals from the marketplace, and set in play appropriate trading algorithms.