Fintech company Acuity Trading, which is exploring the realms of big data and how to deliver advanced market analysis solutions to a wider audience, has announced that it is launching a brand new product. The company is to roll out a tool dedicated for retail traders looking at the market from a sentiment perspective.
The Market Alerts Sentiment Indicator is designed to display compact information about the prospective moves across different markets. The technology at the core of the product is the same one used with the company’s other market sentiment analysis tools with a complementary layer.
An instant comparison with past market sentiment patterns is displayed to the trader, so he/she can assess the reliability of the signal.
The tool analyzes the effect on the price of the asset within a particular timeframe and sums up the findings in a clear summary of the probability for a directional market move.
Commenting on the announcement, the Managing Director of Acuity Trading, Andrew Lane, explained, “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.”
“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,” he elaborated.
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While a powerful tool on its own, the Market Alerts tool is to be used with other trader favorite tools. As is usually the case, the global financial markets are not to be tackled with a “holy grail” approach.
Like all of Acuity’s products, the indicator is easy to use with a very visual interface. The ability to monitor across different asset classes also provides another layer of analysis for traders. Market correlations can be used to assess the reliability of a signal. The alerts can be tuned up to display only when a certain confidence level threshold is reached.
With different traders having different risk appetites, the tool has a range of fully customizable options.
The company states in its announcement that the tool is proving to be powerful on its own or when used in conjunction with other indicators when tested by trial users.
The Vice President of Sales at Acuity Trading, Brad Alexander, elaborated on the performance of the indicator, “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,” he stated.
Similar performance for a sentiment indicator is indeed impressive, yet it would be interesting to see the record stretches over longer periods of time.