DCM Dealer generates trading intelligence from social media data
DCM Capital has launched the first ever trading platform that incorporates a real-time social media sentiment feed. DCM Dealer is a multi-asset CFD and spreadbetting platform that mines and analyses data produced by Twitter, Facebook and other social media channels, equipping users with an additional layer of intelligence when making trading decisions.
The proprietary platform employs a sophisticated algorithm that derives sentiment ratings for all leading stocks, indices, FX and commodities at an individual instrument, portfolio or sector level. This never before seen data is validated and assessed according to a number of criteria including relevance, source and bias to produce a score between 0 and 100 (where 0 represents a very negative attitude towards the instrument(s) and 100 a very positive attitude). Interactive charts mean sentiment can be monitored over time, helping users identify and act upon market-moving trends.
The social media sentiment feed is just one of a number of features of DCM Dealer that enhances users’ trading experience. Orders can be generated and executed from a single screen, stocks can be grouped into portfolios to assess performance at an aggregated level, and news from outlets including The Telegraph and Bloomberg is fully integrated into the system.
Other features are specifically designed to help mitigate risk. Users can set limits in absolute terms and receive text and email alerts when certain limits or mandates are reached, while a ‘deal ticket wizard’ provides a step by step guide to the trading process in plain English.
“Our aim is to create a community of better informed traders,” said Paul Hawtin, Founder & CEO, DCM Capital. “Today, social media creates a vast amount of information and it has been proven that the sentiment derived from it can predict stock market movements. For the very first time, we are connecting this information source to the trading community, opening up the universe of social media data so traders can make more informed buying and selling decisions.”
“The big benefit is that our sentiment rating adds another risk mitigation dimension to trading. For instance, if users see a downward movement in the sentiment rating of a stock in which they are perhaps slightly overweight, they can immediately hedge their position. On the other hand, if they see the attitude surrounding a stock change for the better, a buying decision can be made based on more information than ever before.”
DCM Capital received FSA Authorisation in 2012. The trading platform can be accessed online, or from any tablet, via: http://www.derwentcapitalmarkets.com/