AidanD12 wrote: »
A friend and I (both data scientists) are starting a project to develop a software tool to assist the small investor when researching stocks. The intention is to do sentiment analysis (via machine learning) using the live input of multiple social networking and discussion groups and combine with any relevant news from media feeds and also the normal financial assessment figures (such as p/e etc) to come up with a stock rating/recommendation. The current stock holdings would be known along with a client profile (such as risk aversion etc) so that we could recommend a stock to keep a balanced portfolio.
We’d really appreciate some feedback from the investor community to see if this is something that they would be interested in or see as potentially adding some value.
ixus wrote: »
First recommendation is to research your competition.
Sentiment indicators are not new. I'd say well over 10yrs.
What you describe doesn't bring anything new to the market.
Next, if it's not new, it has to be better. First, you'll have to backtest to some degree. Then you'll have to demonstrate in a live market for a period of time to show it's not just curve fitting.
All of this will require content on a daily basis, building up a following which ultimately converts to paying customers.
Then you just have to maintain a positive track record.
Jim2007 wrote: »
This kind of think is ten a penny and so far has been a dismal failure and is likely to remain so. Social media is properly the biggest enemy of the small investor, it is actively used to talk up or down stocks by the sell side. Perhaps you might be able to sell the idea to some of the sell side organisations as it would add to they tools nicely.
Kickstart1.3 wrote: »
lots of tools out there, I did a document parser for an investment firm years ago while I was in college. Basically they wanted to screen RNS press releases and gauge the tone of the release. They were really happy with the results of what I done, and no I didn't get paid a fortune from them it was quite modest as I only worked on it for over a week. That was nearly 20 years ago
Since then I do know they have gone on to do more advanced systems and have a whole team of computer scientists working on software for them. I can only imagine how advanced the software has become, but at a guess they would have AI reading and participating in forms and chat rooms.
AidanD12 wrote: »
Thanks Kickstart. I've just finished a masters in AI and it's amazing how quickly the landscape is changing in the technology. Lot's of scary stuff like chatbots and the likes that make the headlines but lots more very positive stuff