Big data specialist Digital Contact today launches its revolutionary new financial platform, which will use social media and financial news sources to keep investors one step ahead of the market.
The platform, Trading.co.uk, monitors more than 9,000 stocks in real-time, alerting users to heightened activities and changes within the market and giving them a competitive edge by highlighting these activities as they happen.
Watch lists can be created, allowing users to organise their favourite companies and easily monitor for opportunities.
People are increasingly living their lives online, and the hidden traces they leave behind help to form big data. Every day, the web is flooded with the equivalent of more than 150 million, 16 gigabyte iPads worth of information. Digital Contact’s analytics machine is able to make sense of this hidden world to produce valuable metrics on its users’ stocks, presented in the form of a dashboard.
At the heart of Trading.co.uk’s feature offering is the exclusive ‘Pulse’ technology. Made up from millions of sources, Pulse instantly alerts users when an unusually high volume of chatter is happening around a company online; saving time by identifying any abnormal activity in the market. When Trading.co.uk’s Pulse chart hits one or higher, the day’s price volatility will usually be 16% higher than average – meaning that trades should take notice.
Trading.co.uk uses Artificial Intelligence to collect and analyse around 250,000 online messages per second – more than 22 billion per day – and filters these to produce stock market intelligence.
For each company on the platform, Trading.co.uk monitors a range of data points, reaching into the hundreds for some companies. These data points enable Trading.co.uk to look at the different parts of a business and see the smallest influences that can affect stock prices; from global events moving the price of stocks or commodities, to local news and chatter impacting how a company operates.
Gareth Mann, CEO of Trading.co.uk, said: “Social media needs to be taken seriously as an investment tool, and those who aren’t considering it will, frankly, fall behind. This is the new wave of big data monitoring, and it allows us to translate – and make sense of – an incredible mass of information to ensure traders stay on the front foot. We’ve tweaked and perfected our platform and are now in a position to move forward with our solution; to refine and make sense of all the chatter and create tangible take-outs that businesses, and investors, can work with to make vital decisions.”
As we venture deeper into the digital age, the speed at which investors can be provided with information on their stocks will come to dominate their investment strategies. Last year’s accident with the Smiler ride at Alton Towers – over which Merlin Entertainments is to be prosecuted for breaching health and safety laws – is an obvious example of how Trading.co.uk could help an investor. Using its social media analytics,Trading.co.uk flagged Merlin Entertainment as a potential risk almost immediately after the crash – a whole hour before the incident hit mainstream news, and before the stock then dropped by 10%.
It’s not just the FinTech sector being swept away by social media’s influence on the markets. Last year, the European Central Bank (ECB) released a paper on using online conversations to predict the investment markets.
It concluded that Twitter bullishness has a “statistically and economically significant predictive value in respect of share prices in the United States, the United Kingdom and Canada.”
Case study in brief: On March 11, 2016, Trading.co.uk’s Pulse metric alerted users to a high level of activity around Severn Trent PLC, after the company’s customers were issued with a ‘Do not use’ notice due to high levels of chlorine detected in the water supply. Trading.co.uk was able to break the news to its users nearly 3 hours before major news outlets began reporting the announcement.