How to differentiate the signal from the noise – this is a perpetual dilemma for every investor looking at new trading opportunities. With the vast amounts of market information widely available on the web nowadays, it has become a different set of data altogether, which in fact can be very confusing for retail traders aiming to make informed trading decisions.
According to information obtained by Forex Magnates, Abu Dhabi headquartered online trading provider, ADS Securities, is the first retail brokerage to address the issue by providing its clients with access to a brand new sentiment tracking research tool. To deliver it, the company has partnered up with sentiment-based technology company, Acuity Trading.
The product provided by Acuity Trading is designed to provide traders with a sentiment aggregating tool scouting the world wide web for information specifically related to a selected currency pair or any other asset for that matter.
Acuity Trading’s solution captures the underlying mood of the investment community. Traders can easier grasp what portion of an incoming announcement is already priced into the market through the sentiment on a given currency pair or asset and devise their trading strategies accordingly.
Clients of ADS Securities will be able to get an instant analysis of a vast array of relevant information sources – blogs, news wires and social media with a single push of a button.
In addition to the technical and fundamental information they already have, they can track the real market sentiment strength behind the headlines and make their trading decisions based on that.
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According to Iskandar Najjar, Middle East and North Africa Managing Director at ADS Securities, “This is the first time that big data sentiment analytics has been made available to online traders in such an accessible and user-friendly way. In simple terms, it allows our clients to take on the views of millions of people and look beyond the headlines.”
While hedge funds like Ray Dalio’s notoriously famous Bridgewater and many institutional investors who have made big data play an important role in the making of their trading decisions, sentiment analysis tools have not been widely available to retail traders due to the substantial costs associated with their use.
Acuity’s sentiment tracking research tool allows traders to use and create their own custom indicators, available via charting applications or display widgets.
According to the Managing Director of Acuity Trading, Andrew Lane, “If you can understand how the investment community is feeling today, you can more accurately define what will happen tomorrow.”
Commenting on the partnership he shared, “ADS Securities is an innovator in trading technology and we look forward to helping them develop new tools that will help their clients find unique trading opportunities. We are immensely proud to be working with ADS and look forward to pushing further on new ways in which to incorporate big data into everyday trading.”
Professional financial news services such as Bloomberg’s Professional Service, which has teamed up with Singapore-based developer InfoTrie to provide its FinSents solution, and Thomson Reuters adding a Twitter feeds analyzer app to its EIKON platform, have already been available, however the costs associated with these products are usually far out of reach of retail traders.
Acuity Trading’s Managing Director, Andrew Lane, will be speaking at the Fintech financial innovation panel at the Forex Magnates’ London Summit in London later this month.