How do we make buying and selling decisions:
- Evaluate company and product features to find intrinsic value (aka fundamental analysis)
- Look for price fit, price movement, discounts, offers etc. (aka technical analysis)
- Search online for the right product – just Google it! (aka search analysis)
- Look for reviews, blogs, tweets, news items, research reports to read what experts and common people are saying about the product (aka sentiment analysis)
For equity research and trading there is an explosion of content from a multitude of sources that needs to be searched and analysed in real time.
Fundamental and Technical analysis is formally defined with a large number of mathematical and statistical indicators. No formal and recognized definition of indicators for sentiment and search analysis.
How do we get this huge and diverse content together in one place to search, analyze, and collaborate to discern insights in real time?
Stock Sentiment Trader (SST) endeavors to solve the above problems!
SST functions across the front, middle and back office departments. It enhances trading gains, manages portfolio risk, and improves compliance by ensuring that trades align with the firms objectives
The target market consists of both buy side & sell side firms including:
- Hedge Funds
- Asset Managers
- Investment Banks
- Boutique Research firms
- Broker Dealers
- Market Analyst
- Portfolio Manager
Research Analysts need to go over volumes of information overnight. This includes news, analyst reports, social media posts, financial results, financial policy and regulatory changes etc. Upon analysis of this information they publish research reports and make recommendations to Traders. SST leverages Artificial Intelligence to simply and automate this task by filtering volumes of information using NLP like queries and enabling them to formally present their insights in the form of executable queries.
- Research Analysts can build new queries or modify existing queries.
- The NLP like queries can filter news, social media and private documents on currently trending concepts, keywords, authors, stock symbols etc.
- This enables focused sentiment measurement on the documents returned by the query.
- Approved queries that provide unique insights are used by Traders to multiply trading gains.
- Traders can select and use queries to make trading decisions during live market hours.
- The Trader can configure sentiment weights for each source feed to align with their thinking and trading style.
- The Trader can visually monitor the total sentiment heat bar or individual color coded sentiment doughnuts for each data source.
- The Trader can set alerts based on a combination of sentiment, price and technical indicators. Such alerts can function as Buy, Hold or Sell signal indicators.
- SST API’s can be used to integrate with the Traders Order Management System (OMS)
- Traders also rate queries that are created by Research Analysts
- Assigns research tasks (Stocks, Sector, Market) to Research Analysts. Research Analysts create one or more queries to complete the assigned tasks. These queries are tested, approved or rejected by the Portfolio Manager.
- Leverages the dashboards to monitor performance of the firm, Research Analysts and Traders.
- Uses the heatmap feature to regularly review the portfolio while monitoring stock and portfolio sentiment.
- Runs and reviews audit reports to ensure that the trading actions are consistent with the firms objectives.
Product Administrator is an IT user responsible for configuring the product. This includes user management, feed management, setting default sentiment weights, configuring firm wide commission rules, exporting a sentiment query to the consortium etc.
Modular & Configurable
- SST is architected as a set of loosely coupled components. Customers can pick and choose what they want now. Buy what they need in the medium/long term later
- Available with its own UI or headless. SST API’s enable integration with third party trading applications.
Can be configured to meet every users needs:
- Various Data sources for qualitative and quantitative sentiment can be configured
- Select news feeds can be configured
- Choice of multiple sentiment engines – third party and custom FinSoftAI engine
- Sentiment weights can be configured
- Technical indicators can be selected/configured to the users liking
- Heatmap can be configured based on different parameters
- Query elements can be configured (future offering for a configurable query)
- Commission rules can be configured
- Custom Audits can be configured and scheduled
Next Generation Solutions
and it is not the Bull side or the Bear side, but the right side”
that they are now making with all their best efforts”
whose eyes are glued to the scoreboard”