Using an Algo to trade news headlines automatically

Discussion in 'Automated Trading' started by Lon Eagle, Aug 30, 2012.

  1. If anyone has experience in this area either from a trading or a development perspective then I would like to discuss various issues and please feel free to PM me or more details.
  2. It's easy enough, really, if you have a fast enough news feed located in the right place (or suitable arrangement with news provider). Just filter on specific things you're looking for - SEC form numbers, keywords like "resigned", or whatever, generate the signal and hand it off to a super fast OMS.

    Is that the sort of thing you're talking about?
  3. unless you can incorporate artificial intelligence into the algo...i don't see how this is workable when markets frequently discount news and sometimes it's not the news itself but the reaction to the news that is important

    but my ears are open
  4. Bob111


    the simplest straight forward form would be-buy on upgrade and short on would be just few lines of code..
    if you can make money off that-then you can move on to something more complicated :p
  5. Jan 25, 2010
    Thomson Reuters algo news feed targets high-frequency traders

    Data vendor Thomson Reuters has unveiled a new service designed to give high-frequency traders the fastest possible access to machine-readable news content.

    Thomson Reuters NewsScope Direct will offer high-frequency traders in London and Chicago microsecond delivery of news and economic data before it has a chance to move the market.

    NewsScope Direct will be housed within Thomson Reuters’ London and Chicago hosting centres. Customers can connect and integrate the news feed into their trading strategies from their own data centres, or use Thomson Reuters' proximity hosting solution.

    According to Thomson Reuters, its new service will be particularly useful for high-frequency traders in the FX and futures markets, which can move sharply in response to key news and economic data.

    “Being first to act on this information can dramatically affect a firm’s profit and loss,” said Rich Brown, global business manager, machine readable news, Thomson Reuters. “The launch of NewsScope Direct, the market’s fastest machine readable news service, into London and Chicago reflects our commitment to delivering the market-moving information our clients need at the speed required by their high performance trading strategies.”

    NewsScope Direct is one of Thomson Reuters’ solutions for quantitative and event driven trading, which provide content, technology, and data management capabilities for quant-based trading strategies.

    or try or
  6. Thanks for all the replies so far. It is macro news headlines I am mainly concerned with.

    Obviously coding economic data is straightforward but it is taking headlines from the likes of Reuters/Bloomberg/Dow/mni that is the point here.

    For example I could quite easily have an algo that traded automatically if a headline came out stating "Spain requests bailout". However if this was worded differently the algo may not pick up the significance or even worse there could be a few words before or after that sequence of words that meant that the meaning was actually the opposite.
  7. I can do / program the job. I sent you a PM
  8. Given that any of the big boys can spend tens of millions to create an algo that trades off the headlines (and surely already have), is there really any way that anyone else can feasibly make money from this scheme?
    I would imagine that they tweak their algos to feed off the little algo fish.
  9. Bob111


    the problem is that any macro news can move market in any direction. ok, rate is good? yeah! buy!!! better for economy! but wait..if fed cutting the rates-this mean economy is bad and might get even worse..sell!

    you might need collect a history and response first then calculate your odds. and this wold bring us to very same approach,like we do with price,trying to calculate our odds
  10. I accept what you are saying but I already trade rate decisions automatically and have solved that issue.
    #10     Aug 30, 2012