Roger Aitken
Roger Aitken

Buying on Rumour and Selling on Fact: Twitter News Comes to Algo FX

Twitter, the social networking site, is fast catching on as a source of news for FX traders and other market participants, who can now feed 'tweets' into their algorithms in real-time to assist in making trading decisions. Roger Aitken explores.

First Published: e-Forex Magazine 37 / Algorithmic FX Trading / October, 2009

Twitter would appear well and truly ensconced in the world of FX algorithms, with traders deploying and using software developed by US-based technology StreamBase Systems (StreamBase) to monitor ‘tweets’ for price sensitive information. While the adoption of Twitter in a social context has been fairly profound globally, within days of the firm unfurling a seemingly innocuous communiqué on their development this June, a fevered debate erupted.The issue not only made it into the broadsheet newspapers like the FT as well as on business news channels like CNBC, but has raised the question as to the role of the sweeping adoption of Twitter as a real-time, global information source, beyond what was originally intended. Mark Palmer, President and CEO of StreamBase, who can be followed on Twitter himself (twitter.com/mrkwpalmer), says: “Trading on rumour is a time-honoured trading technique. ‘Buy on rumour, Sell on news’ is one of the oldest mantras on Wall Street and Main...continued

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