Optimize crypto trading strategies with DPP News & Sentiment, powered by Mediatoolkit
Use news and sentiment streams to create custom signals and enhance trading strategies in DataStreams and Trader+
We have been working closely with Mediatoolkit since 2018 and today we are pleased to announce our official partnership. Mediatoolkit provides state-of-the-art software behind our News & Sentiment feature. News and Sentiment data can be accessed through the Market Overview page and is an integral part of our services, including DataStreams and Trader+.
Mediatoolkit is a media monitoring & analytics tool that gathers information from millions of internet sources and notifies you in real time when someone mentions your brand, company, or competitors. For more on Mediatoolkit, check out this blog on how their software is integrated to influence create smarter business decisions — our News & Sentiment feature is just one of many.
News & Sentiment
Thanks to the power of Mediatoolkit, our News & Sentiment data streams offers additional input options for making timely trading decisions based on the latest news and sentiment feedback — adding a further decision layer to your algorithmic trading strategies. Sentiment detection of a mention is based on mention’s text. There are 2 different algorithms, one is word-based scoring and the second one utilizes a machine learning model trained on a predetermined corpus of known sentiment. The calculation of the overall sentiment is a composition of the two methods listed above.
With access to 198 media outlets and 100 digital assets, DataStreams and Trader+ users can utilize News & Sentiment to find unique correlations between news, sentiment, and price movements. Users can also customize news feeds to pull data and sentiment using additional media outlets, social media platforms, and keywords.
We’re extremely pleased with the results produced by News & Sentiment. As a recent example, we pulled some comparisons from our Market Overview page, showing price versus sentiment for ETH/USD, BTC/USD, ETH/BTC, and XRP/USD (pictured below). To create a custom News & Sentiment feed, contact us at email@example.com and our team can help get you set-up!
News & Sentiment for DataStreams
Now, let’s take a look at how to access News & Sentiment in DataStreams and later we will review accessing the feature in Trader+. DataStreams users can pull News & Sentiment through a simple query that can be searched per currency, as shown in the example above.
News & Sentiment for Trader+
Now, let’s take a look at a couple of use case examples of the News & Sentiment feature using Trader+ — our upcoming algorithmic strategy editor. Please note Trader+ is still in beta and as a result, the final product is subject to change.
As mentioned, the News and Sentiment feature provides additional input for a user’s trading strategy — further optimizing the strategy’s decision-making process. Each evaluated news data point is identified as either having ‘positive’, ‘neutral’, or ‘negative’ sentiment. Additionally, this feature identifies the reach of the news and the level of virality. Reach is the calculated number of views accumulated by the news story. Virality is based on engagement data from the first 24 hours of any given news story. It’s measured by the number of engagements a certain page gets divided by the average number of engagements received by pages on the same domain. This is then represented as the thunderbolt symbol you see on your interface, the number of symbols the level of virality.
All of these factors are determined using advanced algorithms powered by Mediatoolkit. So, let’s say there’s a news story about Ripple (XRP) such as the one pictured above. This is clearly good news for Ripple and in this case, this news story (or news data point) is identified as having positive sentiment. But how does this factor into your strategy?
For example, consider you’re interested in building a simple strategy for trading Ripple (XRP). Using the News & Sentiment feature, you can identify positive, neutral, or negative sentiment calculated from all relevant news feeds. In the example above, consider negative sentiment is greater than positive or neutral sentiment. The Decision node calculates negative sentiment and provides input into the Order Decision node. Since the negative sentiment is greater than positive or neutral sentiment, the order decision will not allow the user to place a long position on Ripple.
Create custom signals in Trader+
Users can also build their own custom signals in Trader+. These signals can be built using any data provided through the DPP platform, such as technical indicators, candles, volume, order books, or sentiment. This signal can then be implemented into your trading strategy within Trader+.
In the above example, we have created enhanced sentiment for Bitcoin by combining multiple inputs into a custom signal. Here, we used two additional inputs to enhance a standard Sentiment node. In the first input, we analyzed trading volume fluctuations during the last 24 hours, while the second input is determining the trend and momentum using a MACD technical indicator. In the Enhanced Sentiment node, all three inputs are weighted into a single output, therefore creating a new custom signal that connects to the Order Decision node. Furthermore, if negative sentiment prevails and Bitcoin trading decreases and/or MACD indicator is showing negative momentum, the custom signal will further confirm the negativity of Bitcoin sentiment. However, if the momentum is reversing and trading volumes are increasing, the custom signal might turn positive, recognizing a new trend.
We have always strongly believed in, not only streamlining the crypto trading experience, but also optimizing and enhancing it. Using a custom signal such as the one shown above is just one way DPP allows users to take complete control of the market and focus on what truly counts — getting results with their trading strategies! For more on Trader+, DataStreams and the future of crypto trading, keep it locked on DPP.