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AI, machine learning, NLP, Sentiment Trading, Uncategorized

Social Market Analytics (SMA) Partners with Coin Metrics to provide Real-Time Sentiment Data Feeds

June 17, 2019/by SMA Team

Coinmetrics

Coin Metrics and Social Market Analytics (SMA) announced today a partnership to incorporate SMA’s Crypto Currency Data Feed into the Coin Metrics Market Data Platform.

Alternative data such as social media platforms and data feeds have become a vital source of information for traders, particularly in the Crypto Currency Markets. The SMA Crypto Currency Sentiment Feed will offer the Crypto Currency community a tool for including social media sentiment data in their trading and portfolio strategies and expand Coin Metrics market leading Crypto Asset market and network data products.

“As the Crypto Investing market continues to mature, institutional investors are demanding data from trusted partners. These institutions are looking to make data-driven decision by accessing sources of data that they understand from their legacy investing frameworks. We believe that the power of combining sentiment data with granular network and market data is fundamental to building a deeper understanding of crypto assets. Coin Metrics is excited to partner with SMA, who has a long history of providing sentiment data to traditional capital markets participants and share Coin Metrics’ principles and values. The ability to provide an all-in-one Crypto Financial Data solution is a huge convenience for institutions.” Comments Tim Rice Co-Founder and CEO of Coin Metrics.

“Artificial intelligence and Natural Language Processing are moving into our everyday lives at light speed, and perhaps into financial markets even faster than that. We feel strongly at SMA that participants in Crypto Currency markets will benefit from our unique process in this emerging field, both in its approach to filtering social media data and in the analytical methodology used to develop our proprietary metrics. We’re excited to partner with the Coin Metrics team to offer this service through a versatile industry leading platform” said Joe Gits, Co-Founder and CEO of SMA.

About Coin Metrics

Coin Metrics was founded in 2017 as an open-source project to provide the public with actionable and transparent network data. Today, Coin Metrics delivers market and network data, analytics and research to its community and wider industry. https://coinmetrics.io/

About Social Market Analytics, Inc.
Social Market Analytics quantifies social media data for traders, portfolio managers, hedge funds and risk managers using patent pending technology to detect abnormally positive or negative changes in investor sentiment. SMA produces a family of quantitative metrics, called S-Factors™, designed to capture the signature of financial market sentiment. SMA applies these metrics to data captured from social media sources to estimate sentiment for indices, sectors, and individual securities. A time series of these measurements is produced daily and on intraday time scales. For more information, including a User Guide to S-Factors™, please visit www.socialmarketanalytics.com

June 17, 2019/0 Comments/by SMA Team

machine learning, Sentiment Trading, social media analytics, Twitter Trading

UIUC Bitcoin Trading System Practicum Presentation

May 3, 2018/by Joe Gits

Every year Social Market Analytics (SMA) is proud to work with the University of Illinois Masters of Science in Financial Engineering Students on a practicum project. In the past we have explored looking at sentiment to predict the VIX, enhancements to traditional indexes and smart beta ETF’s. This year we decided to tackle the most popular topic of the last year – Bitcoin Trading! We worked with RCM Capital’s Strategy Studio Platform for back testing to develop a Bitcoin trading strategy combining price momentum with sentiment to keep you in the market when Bitcoin is trading up and minimizing draw downs when Bitcoin retreats as it did in early 2018.

Social Market Analytics tracks sentiment on the top 275 market cap currencies, the below Bitcoin strategy performs similarly on other Crypto currencies.

The students did a wonderful job in strategy construction and explanation. I will undoubtedly leave something important out. ContactUs@SocialMarketAnalytics.com for details.

At it’s core the strategy buys on a price breakout with a sentiment confirmation. Exit when price breaks down and is confirmed with sentiment. Buy when the price crosses above (K) standard deviations over a 21 day moving average of price. Variable K ranged from .5 to 2. Results shown use a .5 standard deviation multiplier. Strategy visualization is below.

BitcoinStrategyVisual

Your first trigger is a breakout above K- Standard deviations of the 21 day moving average.

The confirming signal is based on the Social Market analytics S-Score value. S-Score is a normalized representation of Bitcoin’s Sentiment time series over a look back period and is updated every minute. It measures the tone of the conversation on Twitter relative to the benchmark time period. If Bitcoin is breaking out and the sentiment is 2 standard deviations more positive than normal you initiate or add to your position by 50%. If the conversation is 1 standard deviation more positive than normal increase the position 25%. If the standard deviation price break out is not confirmed by sentiment then no position change.

There was no short position initiated with futures. Exit criteria are opposite entry criteria. Price break below K – Standard deviations below a moving average. Confirmation with S-Score.

BitcoinResults