When it comes to selling data, the #1 question people ask is:
"what does this mean for me in the real world?"
Well, here's an example of how to answer that question...
What transpires below is what happens when you unleash our Chief Quantitative Officer Tynan Overstreet, a former professional algorithmic trader and market-maker in Fixed Income futures on the CME, CBOT, LIFFE, and EUREX exchanges with over 12 years trading experience as an institutional prop trader in the High Frequency Algorithmic Trading space, and let him start experimenting with the HIVE-BOT Social Anomaly Score datafeed, when it's fully connected to multiple firehose social media data feeds to see what it can do to supercharge the results of everyday trading strategies, testing on Quantopian.
Well, see for yourself.
Thanks again to our friends at Quantopian for letting us use their industry-leading cloud-based backtesting infrastructure where these results are being generated transparently and shared within the Quantopian community.
Executive Summary (from the case study)
The Dual-Horizon Social Switching Strategy (“Dual-Horizon”) is a market-timing model trading a basket of symbols ($SPY, $QQQ, $DIA and $IWM), which combines both momentum and mean-reversion into one strategy. Dual-Horizon’s strategy backtest generated absolute returns of 245.4%, with a Sharpe Ratio of 2.51, and a Beta of -0.01 during the 5-year backtest period. During this backtest, Dual-Horizon displayed impressive risk-control, with Volatility of 0.17, Max Drawdown of 14.6% and Information Ratio of 1.64.
“The HIVE-BOT is a new dimension of data.”