Mostly… fixed income and cross product eTrading

June 26, 2007

Algo + News Feeds, again

Filed under: Algos, Nuts and Bolts — holky @ 7:37 pm

I was thinking about the use of news feeds in algorithms again, and wondered why Reuters and Dow Jones and all the other vendors trying to flog these feeds aren’t out there letting people use the tagging / weighting / scoring just to filter what appears in different panes in their market data terminals.  Letting everybody via the market data gui see how they can filter the crap and only see important stuff, or filter all the bad news in order to see a rosy view of the world, or whatever, if only just to build faith in the provider’s story scoring. Let people begin to play with the scoring system (such as the ‘weakness’ comment in ukalgotrader’s News feeds into algorithms? Lets make algos work first!) via the market data gui and see where it goes?

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2 Comments »

  1. Taleb presents an interesting sanity check on our (blind?) faith in researchers and news commentators. “…it is not how likely an event is to happen that matters, it is how much is made when it happens that should be the consideration. How frequent the profit is irrelevant; it is the magnitude of the outcome that counts. It is a pure accounting fact that, aside from commentators, very few people take home a check linked to how often they are right or wrong. What they get is a profit or loss. As to the commentators, their success is linked to how often they are right or wrong…”

    Comment by edelweiss — June 27, 2007 @ 11:52 am

  2. How long before someone announces that they’ve backtested their news-fed algos with the many bad news items over the summer and “conclusively proven” that their algos can beat every situation, and would have taken everyone to the cleaners this summer …if they’d been running live.

    Comment by Holky — October 4, 2007 @ 8:20 am


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