Derwent Capital ‘Twitter’ fund out-performed US Dow in July

We have recently covered leveraging social media trends in trading.

So, its interesting to see that the debut trading results from Derwent Capital’s new Twitter based sentiment fund seem initially to validate the use of social media ‘tweets’ for predictive trading.

The first full month of trading, saw the Derwent Capital Twitter fund outperform the US Dow, making 1.85% compared to the US Dow which lost 2.2% over the same period.

Being social media, BBC Radio 4 ran an interview today with Dr Johan Bollen of Indiana University Bloomington, who wrote the program that Derwent Capital uses.

Further chatter on using social media ‘tweeting’ as predictive indicators in trading

Social media as predictive indicators for trading – coming to a screen near you soon.

Following on from Mike Hill’s post last month a number of banks we are speaking with are talking (or in social media speak, “tweeting”) about incorporating some form of social media sentiment and correlation analysis as a predictive indicator within their trading platforms – to uncover hidden trading opportunities.

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