News based algorithms

[pratyahara]

I've been curious as to how news/earnings reports/inventory data etc impacts various markets. In this thread, I want everyone to list frequent/non-frequent news based events that impact markets. And if they have traded based on news based events.

For example: In one of the threads on this forum, it shows how after natural gas storage data releases, the markets go haywire. http://www.traderji.com/energy/9140...as-without-any-loss-no-ta-chart-required.html
I want to create a python script to take input from investing.com and make a trade based on data interpretation.

Do you have algo strategies to trade other news events like earnings, crude inventory data etc? Also, how have been the results?

 

[DSM]

Prathyahara,

Markets do not follow linear logic of if X, then Y. It may invert the news on its head. Bad results, but good commentary? Markets will go up instead of down. Positive inventory data? Markets can tank. Recent example. Brexit voted? Markets moved up. Also speaking from personal experience over time.

What a trader needs to see post event is market reaction to the news, rather than news by itself. And price action will tell you the mood of the market after volatility has settled (and taking the stops of the bulls and the bears) Just my views....

I've been curious as to how news/earnings reports/inventory data etc impacts various markets. In this thread, I want everyone to list frequent/non-frequent news based events that impact markets. And if they have traded based on news based events.

For example: In one of the threads on this forum, it shows how after natural gas storage data releases, the markets go haywire. http://www.traderji.com/energy/9140...as-without-any-loss-no-ta-chart-required.html
I want to create a python script to take input from investing.com and make a trade based on data interpretation.

Do you have algo strategies to trade other news events like earnings, crude inventory data etc? Also, how have been the results?

 

[pratyahara]

Thank you for the wonderful insight. Seems like there are no shortcuts.

May I ask you for a piece of advice?

If I was just starting out with my trading learning then what would you suggest that I focus on most?

I've been reading AI Brooks price action books. I'm very interested in trading based on order flow and quantity traded indicator. But I don't want to invest a lot in acquiring tools as if now so only focusing on PA.

Regards,
Pratyahara

 

[DSM]

Speaking for myself, what I find important is :

* Understand the trend in the HTF. For this, look at 30 day, 240M chart and 5 day 30M chart.

* Trade when the short term trend aligns with the HTF. This happens after a correction. So dips against the trends are an opportunity to enter long/short.

* This will happen 2-3 times after which the trend reversal will take place.

* Price closing in the 20% top/bottom of the 60M candle is a good idea to enter intraday.

* Al Brooks is too complicated to understand and apply (good only for post market analysis in my view) Look for candlestick chart pattern study from Martin Pring/Nial Fuller. (Google for the same)

* Trade basis above and in conjunction with trend is the way to go.

Just my view... Good luck.

Thank you for the wonderful insight. Seems like there are no shortcuts.

May I ask you for a piece of advice?

If I was just starting out with my trading learning then what would you suggest that I focus on most?
I've been reading AI Brooks price action books. I'm very interested in trading based on order flow and quantity traded indicator. But I don't want to invest a lot in acquiring tools as if now so only focusing on PA.

Regards,
Pratyahara

 

[dumbtrader]

Check the blog below. In the blog I have taken an example of Eicher Motors Stock and illustrated how one can use sentiment analysis following a major news/earnings release etc. to predict stock movement.

https://www.quantinsti.com/blog/sentiment-analysis-in-trading/

 

[dumbtrader]

Here's one more article on news based algorithms...
It pulls text from news articles published on a financial news portal, and then
performs a sentiment analysis.

https://www.quantinsti.com/blog/sentiment-analysis-news-python/

In the article, an example on NIFTY Pharma companies has been taken to perform sentiment analysis.

 

[00fnotrade]

Here's one more article on news based algorithms...
It pulls text from news articles published on a financial news portal, and then
performs a sentiment analysis.

https://www.quantinsti.com/blog/sentiment-analysis-news-python/

In the article, an example on NIFTY Pharma companies has been taken to perform sentiment analysis.

Good One :thumb: