How We Used Big Data Analytics to Catch a 63% Profit Opportunity in a Cryptocurrency
Here is an example of how our TweetTraders platform caught a 63% decline in a cryptocurrency that had over $10.0 million in daily trading volume.
On July 16, 2018 at 8:27 AM CT, Twitter user @rsluymer tweeted that he believed $XET is potentially overvalued:
The price of $XET (External Token) shortly before this tweet was $3.94 (XET/USD), based on publicly available trading data. Over the next three days, $XET declined approximately 63% to $1.47, with a sharp decline of over 44% in the first 12 hours.
The coin had a brief bounce back following that 72 hour low and then continued to gradually decline over the next two months. As of the date of this writing, $XET is trading at $1.29.
Here is how easy it is to set up an alert in TweetTraders that may have allowed a trader to act on this tremendous profit opportunity:
Step 1: Enter the coin or coins you want to follow.
Step 2: Enter any number of keywords you want to use to trigger alerts.
Step 3: Pick the type of alert you wish to receive.
Step 4: Receive alerts when one of your alerts gets triggered.
As with any investment, the user will need to evaluate the quality of the information provided and incorporate it with contextual information before acting on any trading opportunity.
TweetTraders helps the information gathering process by setting filters and who can trigger an alert based on the type of coin. For example, for $XET, only Twitter users with at least 2,000 followers can trigger an alert while for $BTC that threshold is substantially higher at 10,000 followers.
Furthermore, had this Twitter user used this same combination of keywords in the past, TweetTraders would have provided hard data to help evaluate if the tweets potentially had an impact.
As shown below, the next time an alert with this same combination of Twitter user/keywords is triggered, a user will receive information on how the coin (or stock) moved over the 48-hours post-tweet to help determine the optimal trading strategy. Of course, it is again up to the trader to understand context and the value of the information source as TweetTraders does not provide investment advice but rather historical data on what traders may expect.
Example of Execution Guidance on Repeated Keyword Alerts
That is just one simple flow of how TweetTraders can capitalize on real-time information on Twitter the instant is born.
TweetTraders
Twitter is the source of real-time information, and TweetTraders is a platform that allows investors to profit from news the instant it is made available. Through our easy-to-use interface, users can quickly validate trading strategies related to how news can impact stocks or cryptocurrencies and set up real-time alerts for actionable insights that lead to profit. More importantly, with historical data down to the minute, TweetTraders improves trade execution by giving insight into when to buy or sell based on past trends.
Kernel
TweetTraders is powered by the Kernel platform. Kernel is a streaming data integration and rapid application development platform built by Ennate that allows you to make complex data-driven apps 10x faster. For more information on the power of our data connectors and lower-code application development process, visit ennate.io.
