PART I

 

I recently spoke with an elderly gentleman - a trader

and fund owner. This conversation inspired me to

 

write an article about AI tools that are used in trading “ today.

His fund employs over a dozen traders investing in

various markets, and he is a veteran of oil trading. His

trading style is conservative - after finding a signal, he

opens a trade holding a single position, sometimes for

several weeks. SUPERTREND: MOVING

I want to show you where and how you can use the FROM FORECASTING

most modern solutions in this example. The largest

funds use such solutions daily. TO NOWCASTING As we know, a trader's performance depends on his

decision-making process, signal quality, available

liquidity and what happens during position management. New AI tools will improve each stage of

this process. Data from credit card transactions also allow

estimating whether there will be an increase or a

The solutions and ideas can be applied to any decrease in sales in the chain. discrete trading system.

By analyzing card transactions and various data from

ALTERNATIVE DATA MEANS MORE ACCURATE the company's environment, we can estimate the

PRICE FORECASTS AND BETTER, LESS RISKY financial results that are yet to be published by this

SIGNALS company. If we have access to relevant data, we can

make such estimates ongoing and make investment

Many years ago, to find out the financial results of a decisions. chain of stores, one had to wait for their earnings

announcement. Today, the analysis of satellite images For the oil market, some companies forecast price

of parking lots makes it possible to estimate whether movements based on inventories and demand.

there are more or fewer customers and, on this basis, Today, you can count the amount of oil in tanks in

to forecast the results. remote areas of China by measuring the length of the

shadow they cast (using satellite images). To

 

this estimate, the amount of oil stored in tankers

and on railway sidings is added. Thanks to this,

we know the size of stocks in virtually every

country "right now".

Today's "forecasting" goes to the real-time

estimation of the selected quantity. It is one of

the strong trends changing investing. As a result,

traders and investors have a better picture of the 011

current market situation. Consequently, entries

are more precise and less risky. And funds that

build this kind of competency at home are

winning in the markets.

Supertrend: Moving from forecasting to

nowcasting.

Traders who traded moves after the news are

now seeing that these moves are getting weaker.

On the other hand, traders in the largest mutual

funds are rarely surprised when publishing data

because they can estimate it in advance. It is

also one of the reasons for the disappearance of

some systems.

I read an article a few months ago by an

economics professor arguing that alternative

data is unnecessary because large funds react to

earnings releases anyway. Of course, there is

some point in this. However, suppose someone

can assess the data before publication. In that

case, he has a chance to enter the market faster

- even before the others. Or take advantage of

the entry of other large investors to exit the

market with profits at the right time.

Market behaviour is changing because major

investors have changed their behaviour. Those

who fail to recognize this in time will be left with

old signals and many stocks that are no longer N

as attractive as before. EW

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ENTRY AND EXIT - MINIMIZING COSTS AND ADVERSE MOVES

One of the main problems that most institutional traders complain about today is the difficulty in finding liquidity.

The automated tool can analyze the available liquidity with different brokers, plan and execute market entry. Their use is to take advantage of available liquidity with minimal cost and minimal adverse move.

Virtually every large fund has this type of tool. For example, quants analyze order structures using Machine Learning methods and, on this basis, program various entry strategies. As a result, the program will execute the entry faster and better than a large team of traders.

Automation gives the trader more time for other tasks - more important than position building.

Trend: Entry automation: The program will execute an entry faster and better than a large trading team. The trader has more time for other tasks - more important than position building.

ENTRY WHEN THE SIGNAL IS VERY GOOD

Low risk attracts significant capital. Moreover, new signals are getting better and less risky, so the automated trading solutions get new tasks: increasing positions to the maximum for the best signals.

This change makes it difficult for other traders to Example: find liquidity. As a result, they cannot enter the

market as before, and the adverse movement is One of the funds uses the mean reversion more substantial than previously. system. If the price of a company after good

news has moved too far away from the

However, this is not a problem for smaller average, then the program places a sell order. traders. Some consider the lack of liquidity to

confirm high signal quality. To quote: The basis of this system is pure statistics. The

program counts the main moving average the

"Lack of liquidity in good companies means that deviation from it. The system monitors the 013 the biggest ones are already there." price, and if the deviation is "too high", it

places a sell order back to the average.

This situation is a problem for large traders who

do not use the latest tools. The signals are still However, when good news keeps coming, the good and followed by the expected moves. market often continues moving up. However, there are no longer opportunities to

build large positions. To cope with this situation, they added a

module for analyzing news and sentiment in

The struggle for liquidity, especially in the best social media. Suppose the information about market situations, will only increase. Therefore, the company is still good (or there are many the focus will be on getting a good signal as positive posts on social media). In that case, early as possible to enter with significant capital the sell position is automatically closed. quickly. It is with alternative data that this

becomes possible. Profit increase achieved.

The next step will be to exploit weak signals (I Discretionary traders can use the same scheme. will describe what they are and how to exploit However, while it is still possible to follow the them in a future article). news for a few positions, it is difficult to follow

and create any meaningful picture of social

Better signals and lower risk attract more media sentiment. The Machine Learning tools capital. Automation of entries and exits for analyzing Twitter, Reddit, Finwiz, FB or any becomes necessary; the program can media where potential traders can undoubtedly utilize the available liquidity to the help here. maximum. The competitive battle focuses

on having a good signal as soon as possible. Knowing what others think about a stock or

commodity can help you manage your position

BETTER ASSESSMENT (VIEW) OF THE better. If the sentiment gets bad, we can exit the SITUATION WHILE TAKING POSITIONS market earlier, and a good social mood can

make us hold the position.

While taking positions, a better view of the

situation comes with new tools. However, this Of course, these tools should be approached N improvement does not end with market entry. E with caution - the market is dominated by theW

automated news analysis gives you a picture of IT publicly announce their intentions. But they Social media sentiment analysis and most significant players, and they do not C

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market interest in a particular instrument. have these tools, and with their aid, the smaller RT

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players can see what the big ones see and thus better have the most experience and the best signals. These

understand their intentions and decisions. are the signals that the biggest traders/funds will

hunt for and try to improve.

Today, you can shorten or lengthen a position with

news and social moods analysis because you have a This evolution does not mean that new tools are

better picture of what others are seeing, reading, and readily available or cheap. On the contrary, creating

thinking. them requires a team of good Machine Learning

specialists in finance. It also entails gathering much

AVAILABILITY OF THE NEW SOLUTIONS knowledge about the microstructure of markets.

The tools described here are available to the largest

funds. However, their development is expensive and

requires teams of good specialists (machine learning, IN THE NEXT ISSUE: social media analysis, liquidity analysis, microstructure of markets and its evolution over time). - The fastest path to cash in a fund - what to support

with new tools first - some practical tips. - AI and

As time goes on, these solutions will become more entry and exit hiding. widespread, available from larger brokers or offered as - Evolution of tools towards dynamic MM. stand-alone solutions. - Position and environment analysis.

- New and improved efficiency analysis of market

CONCLUSION: paths.

- Automatic portfolio optimization (including new

Thanks to alternative data, we see a shift from optimization models). forecasting to nowcasting. We also have better - New models for managing the size of positions on forecasts of supply, demand and price behaviour. As a the horizon. result, trading signals are better and less risky.

 

Current tools allow us to make better use of available “ liquidity, minimize entry costs and get a better average

price. Over time, these two goals will be joined by a

third: an emphasis on exploiting the best signals to the

maximum.

 

Less risk will attract more capital, and liquidity will be TODAY, YOU CAN SHORTEN OR LENGTHEN

depleted in many excellent current oves over time.

The struggle for liquidity will intensify further. As a HAVE A BETTER PICTURE OF WHAT OTHERS

result, many sound systems will continue to yield

high-quality signals. However, there will be no way to

build a bigger position. Systems will still be good, but

they will no longer be as profitable as before.

There will be a struggle to improve signal quality in the

long run, mainly to make the signal appear faster.

These changes may, in some time, hit the best traders,

like my interlocutor - a trader with enormous market

experience. Why exactly them? People in his group

015

 

 

A POSITION WITH NEWS AND SOCIAL MOODS ANALYSIS BECAUSE YOU ARE SEEING, READING, AND THINKING.

 

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016 NEW CITY TRADER

Alternative Data is

 

a [Revolution]

 

in trading. Today even more

important than AI 017

 

The use of Alternative Data is the current super It is often the case that an exciting and inspiring trend strongly shaping the present and future of idea comes from a completely unexpected investing. direction. Therefore, it is worth attending

industry conferences and collecting as many

It is a revolution more important than the case studies as possible of what others have revolution that Artificial Intelligence will done. give.

COUNTING CARS IN THE TESLA PARKING

The main benefit of Alternative Data (AD) is that LOT you can have most of your important metrics

faster and more accurately than ever before. One fund applied Machine Learning (ML) tools

to analyze satellite images of the parking lot in

Alternative Data currently improves signal front of Tesla's Megafactory. The tool analyzed quality and reduces risk. In the future, it will be the position of cars and their colours. The goal the primary source of signals. Today, it is the was to determine if and how the number of main source of competitive advantage in many vehicles was changing. It turned out that cars cases to find and use these signals before quickly disappear and new ones appear in their others. place, which indicated that the company would

keep its commitments and plans. Moreover,

In addition to the current use of AD, it is with this analysis, it was known weeks before imperative to create competencies in the fund the official announcement. Such information to use it wisely in the future because this area provides a substantial advantage over other will now evolve rapidly. market participants.

Thanks to AD, the signal will be received earlier. The above is a rather famous and awe-inspiring As a result, it will be better, less risky, the example, so it is worth commenting on it. If we position will be easier to run, and the exit will be look at the area around this factory (in Nevada), N better. E we can see one access road.W

I have prepared twenty examples of using IT Setting up a car with a camera there and havingC

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alternative data. I want to show a broad someone count the vehicles leaving the parking RT

spectrum of situations where AD have been DA lot would give the same result (and perhaps ER

used so far and can be used in the future. much cheaper) as using a whole team to 018 NEW CITY TRADER

 

machine-analyze satellite images. It is worth knowing Traders tracked the flights of key people of a particular

this and looking for a way to have the same data not company to the city where another large company

for a quarter of a million dollars but for 1% of that interested in an acquisition is headquartered. The

amount. board flight data was the first sign that something

interesting might be going on.

NON-FARM PAYROLLS EMPLOYMENT DATA

When the information began to be confirmed, large

A big fund noted the possibility of estimating NFP data positions were built. Prior knowledge allowed them to

with a high degree of precision by observing how enter the market before everyone else. many new listings from job seekers appear on a large

website that connects workers with employers. SOCIAL MEDIA DATA CAN STAND ALONE AS A

SOURCE OF VALUABLE SIGNALS.

Using ML tools, they examined the relationship

between the number of new job search postings and Another big quant fund researched which analysts

the subsequently published employment data. They posting on Twitter had the best results and set up the

found a formula that worked very well. It estimated following system. The application watches the Twitter

the magnitude and direction of currency price feed of a selected group of top analysts and places

movements a few days before the employment data orders when recommendations appear. The whole

was released. Rumour has it that traders found this thing happens automatically. way back in 2012.

Many analysts have spent years studying industries

Knowing in advance what the key data may look like and sectors, and they have vast experience that they

allows you to build a position for the expected share on social media. Therefore, this strategy is a "no

movement, maintain the existing position or exit it. brainer". Some traders (and many textbooks) recommend

exiting the markets before the publication of the most READING DATA FROM COMPANY DOCUMENTS

critical data ("because the market may move WITH ML ALLOWS YOU TO IDENTIFY THOSE

hundreds of pips in any direction"). However, if we COMPANIES THAT ARE LIKELY TO USE CREATIVE

know what the data will be and the market's ACCOUNTING ("COOKING BOOKS") expectations are, then in practice, we have a money-

making machine. A trader uses this tool to pick out suspicious

companies, creates a list of them, and further analyses

I recently read on Twitter the typical speculation about the situation. As soon as his suspicions are confirmed,

future NFP data and what the markets are expecting. he builds shorts. This example shows a system based

But, unfortunately, there is already a group that knows on tracking anomalies in documents. and can exploit this.

I have not heard of any fund doing this on a large

DATA ON CORPORATE FLIGHT USAGE VALUABLE scale, although they have similar tools at their

IN PREDICTING M&AS disposal. They work in conjunction with other

methods to give a better, more complete picture of a

For companies investing in mergers and acquisitions, given situation. information about flights on jets leased by

corporations is a good source of information about PROGRAM ENTERS A POSITION BY ANALYZING

possible events. Two funds are cited as better-known THE NEWS. examples. One of them made over 300 million, and

the other 700 million using such data. News moves the markets, but the sheer volume of

information is a problem.

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One fund created a stand-alone system to THE ANALYSIS OF INTERNET SEARCHES analyze news about a selected group of FOCUSED ON SPORTS BRANDS SHOWS THE companies. The automat reads the news and DEEPENING WEAKNESS OF THE SECTOR AS analyzes the sentiment it contains. If it is WELL AS THE WEAKNESS OF THE BIGGEST positive, it buys; if negative - it sells. BRANDS THERE.

Of course, there are additional elements here, Later, weakness has been confirmed by poorer but I want to show the very essence of the performance, which in turn has brought price solution. Everything is done automatically. The declines. trader is undoubtedly able to repeat some of

these positions, but only a tiny part. The It's worth paying attention to this example - it algorithm never sleeps. Hence it can work shows trends in sentiment around companies constantly and on every market from Tokyo to and in the sector itself - in other words, changes New York. in sentiment over time.

Moreover, with time, other factors will be added Soon, we, or rather the biggest traders and funds, N to the analysis of news sentiment. As a result, E will gauge sentiment trends for the major groupsW

the strategy will be expanded and improved. that consume a company's products and the C sentiment of the major groups that own the ITY

The capital will systematically flow to algorithms company's stock. This insight will make the RT

of this type. And this is not good news for DA company picture clearer and the signals better. ER

discrete investors and traders.

020 NEW CITY TRADER

 

The trader who has this valuable knowledge earlier ADS ALLOW YOU TO UNDERSTAND BETTER WHAT

will win. MAKES UP A SIGNAL.

TRADERS USE NEW DATA WHILE ALREADY IN A One large fund analyzed the factors that influence the

POSITION TO EXTEND THEIR POSITION OR EXIT share price in the sector and found over 200 of them

IT. (they used PCA/ICA - Independent Component

Analysis). They got 100 important ones and a sound

A trader holding shares of a gaming company ordered system for predicting financial performance by

a survey on whether the current customers would be removing the least significant. The system examines

willing to buy a new game that the company was incoming data and gives a forecast based on that, and

developing. Most of them said yes, so he kept his there is no simple analytical relationship. position. The game turned out to be a success, and

the price of the stake he held rose. This is one example of a new type of system. "Manual"

analysis of 100 factors would require a large team of

The survey was a way to forecast demand for the new skilled analysts and perhaps several years of work to

product long before it was sold and long before the find a working relationship. And then feeding the

company's results were released. signal would maybe need a few additional days of

work.

This example shows using data not just as a signal but

as information on whether it is worth extending a Today, building a system using Machine Learning is

position. neither cheap nor short. However, in return, the

finished system will analyze and give the result in

TRADERS USE AD TO ELIMINATE WEAKER seconds. SIGNALS.

It is worth considering that the main factor that was

One fund uses a mean reversion strategy. It is based analyzed was the quarterly results until recently.

on finding excess deviation from the average price of a Today, 100 different factors can be analyzed

company and opening the position hoping for a simultaneously! First, it is worth examining which of

reversal. the initially selected ones have a significant impact.

For example, the price went too high, and the machine Does such knowledge give a market advantage? For

will try to catch the correction. Each element of the example, suppose we ponder the capabilities of a

system, i.e. what is "too far", which moving average is trader or even a whole team of analysts and traders.

the best, is determined with the help of statistics. Then juxtapose it with a system that automatically

analyzes 100 factors every day for each company in a

After publishing data on companies, this system few seconds. enters the - it evaluates whether the upward

movement is not too strong and trades on the This news is not favourable for investors. declines.

EVALUATING STOCKS

If the amount of good data is high or the positive

mood around the company lasts longer - the falls are There are now several companies that estimate oil

weaker. inventories and fuel production volumes. They

analyze how much crude is in tanks (by measuring the

In this case, the program either does not enter the shadow cast by the tank) and how much fuel is on the

market or exits if it already has a position. way (tankers, ship manifests) and in tanks on sidings.

With satellite imagery, analysts can also COLLECTED OPINIONS CAN BE AN estimate aluminium inventories at key depots. INTERESTING BIAS INDICATOR (SOCIAL

 

MEDIA AND NEWS SENTIMENT)

And soon, we will be able to go a step further -

we will be able to predict inventories, their The online sentiment is the opinions expressed consumption and product demand very online (news stories, blogs, FB and Twitter precisely. These predictions will be made posts). possible by mapping supply chains.

Sentiment can be positive or negative and is

Of course, the biggest and the wealthiest best thought of as a continuum that we can 021 companies with their equally impressive teams visualize with a line. will be able to do this. Snippets of this

information are already available (by Sentiment evolves; sometimes, it can precede subscription) from many companies market changes or changes in indicators. specializing in commodity analysis. Sentiment can be good at predicting changes

before they occur. Such was the case, for

ANALYSIS OF NON-OBVIOUS SOURCES OF example, with sentiment around oil in 2017. RISK Positive opinions in April began to turn negative,

followed by declines.

Machine analysis of sector networks can be an

exciting source of early information about As expressed by analysts and professionals, sources of risk that we are unaware of. sentiment is an interesting indicator that

shouldn't necessarily be used directly but can

The problems of one company or group, at first be a signal that something is worth closer sight entirely unrelated to our positions, can examination. have a negative impact on them. An analysis of

past correlations in the sector may show this. WHEN A WELL-DIVERSIFIED PORTFOLIO

TURNS OUT TO BE HIGHLY CORRELATED

Our positions (which we may not be aware of)

may be correlated with some events, keywords There is a particular class of events that strongly and topics that Machine Learning analysis influence price movements. These are "black systems may track. swan" events - where entire sectors and entire

markets enter into deep declines. An example is

Conversely, positive news about another a recent decline due to pandemics. industry can cause capital to flow out of sectors

in which we have positions. Similar events can also occur on a smaller scale.

For example, we can have a very well-diversified

Capital seeks better opportunities and returns portfolio that, under the influence of encumbered with less risk, so stock prices can circumstances, suddenly behaves in a highly fall even if everything is "fine" with our industry. correlated way. These occurrences are usually These falls are caused by prospects competing the result of events that trigger strong panic N with each other. E moves.W

The major funds are now building tools to track IT AnalyzingC

the environment of sectors, Y

this sentiment and the capital flows that follow. companies, or currencies can allow us to catch RT

Such signals provide a broader understanding DA such events and take into account the ER

of the market. unexpected behaviour of the portfolio. 022 NEW CITY TRADER

 

THE TONE OF THE MESSAGE AND COMPANY GEOPOLITICAL RISK ANALYSIS IN SENSITIVE

DOCUMENTS USED IN RISK ASSESSMENT REGIONS

One fund looks at the tone of the messages coming According to a prepared key, the system filters

from the company. The tone can be positive, negative, information from the media in local languages. It

or neutral and can contain interesting anomalies (an selects information that may indicate increasing

example: attempt to hide something). tension in the region and possible crises.

It has been noted that readability and clarity of The analyst does not even need to understand the

communications are correlated with better language, such as Farsi used in Iran, to read a message performance. on a scale (e.g., 1 to 10) and gather that something is

wrong and the tensions are very high.

The tone is not a signal in itself but gives valuable

context. For example, suppose the company's For those investing in oil, this can be of paramount

performance is acceptable. In that case, a positive importance. Consider the abrupt jump in price after

tone can suggest that it will continue to be a bad tone the drone attack on Saudi Aramco's Abqaiq-Khurais

- that something is wrong and traders need to be more refinery (Sept. 14, 2019) careful.

This event was impossible to predict, but the

For example, contextual data only becomes valuable information about rising tensions was available a few

with a tone. They can extend a position, and they can days earlier. We now know that such information can

also reduce risk. It is worth taking an interest in which be used. contextual data will help you in trading.

It does not mean the rising tensions should result in

ANALYZING THE NUMBER AND TYPE OF PATENT an exit from the position. However, this certainly

APPLICATIONS ALLOWS YOU TO ASSESS A requires a sensible action plan in case the black

COMPANY'S FUTURE POTENTIAL scenario comes true.

Such analyses are not yet routine, but many funds are AN ANALYSIS OF COMPANY DOCUMENTS IN

already conducting them. Analyzing the number of COMBINATION WITH A STUDY FOR THE NEEDS

patent applications and their type can provide OF REGULATORS SHOWS WHETHER A COMPANY

valuable information about a company's profit IS STRETCHING REALITY IN THE ESG AREA potential in the future.

Companies are beginning to see that the news of

The fact becomes evident if you think you have two them implementing responsible business (ESG)

very similar companies. One has a hundred patents, policies positively impacts their image and usually

and the other has zero. Both operate in a field where boosts share price. But some companies only talk and

innovation is critical. What impact might the patent do little. structure have on the bottom line 3-5 years from now?

One major fund analyzes company behaviour by

Data on the number of scientific publications in a comparing publicly reported data with documents

company can have a similar impact, an interesting sent to regulators. As a result, it avoids the stocks of

indicator of possible future profits. those companies where there are significant

discrepancies in these areas.

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This fund is gearing up for a massive, systemic shift in ADs themselves can also be a source of high-quality

its approach to investing and sees ESG as the future signals, a prelude to taking a closer interest in a

with the highest returns. company (currency, commodity) or abandoning an

idea.

FOR THEMATIC PORTFOLIOS - A SOURCE OF

KNOWLEDGE ABOUT THE SENTIMENT THAT CAN Anomaly-spotting tools allow us to quickly spot

HAVE AN IMPACT suspicious companies that are 'cooking the books' or

misrepresenting their compliance with new policies or

Many funds build a thematic portfolio by investing in laws. companies in a similar industry or sector. Such

thematic portfolios are sensitive to sentiment related AD is on the rise, but only a small percentage is

to a particular topic. exploitable.

By studying web search trends around keywords, one ADs are the foundation for the next revolution that is

can get an idea of changes, increases or decreases in fast approaching. Artificial Intelligence will take full

popularity. advantage of them, to an extent and with a speed that

will leave today's traders and investors far behind. But

Also, the popularity of other searches can be a clue - all is not lost. The markets will change, but also new

capital interested in companies in one industry may opportunities and new regularities will emerge. We

flow away to something that offers better will devote many articles to them in the future. opportunities, despite positive sentiment around

"our" topic. A FEW WORDS ON THE EVOLUTION OF

ALTERNATIVE DATA IN TRADING

COMPANY EMPLOYMENT DATA

What we see now is the beginning of a revolution. The

The arrival or departure of key people can be a amount of data will only increase. The scope of their

reasonably obvious signal about a company's use in trading will grow. situation. Growing companies hire, troubled companies lay off. "Alternative" data will improve signal quality, extend or

shorten a position, provide contextual information,

Knowing whom a company is looking for and whom it reduce position and portfolio risk. is laying off is interesting contextual information. It can

even be a stand-alone signal in exceptional cases. The revolution we are witnessing today is as

important, if not more important, than the AI

SUMMARY revolution. If someone does not take part in this race -

they will systematically lose positions in the market.

Alternative data helps you learn what makes up a

signal, assisting traders in understanding which If someone does not join the race to use signals are better and weaker and why. alternative data - they will systematically lose

market positions.

Signals are of higher precision, which in turn reduces

the risk. Contextual information coming from the Think of your trading (single instrument or entire

environment also reduces risk. Analysing the portfolio) as a decision-making process that takes you

sentiment in the environment allows you to improve through from analysis to signal, position management

your signal returns: extend your position or exit earlier. and post-trade analysis. Identify the main steps in this

process.

Think about what data would help you at each An exciting piece of information is the step of your decision-making process? What will development plans of some large customer improve your understanding of the situation who orders many products from "our" company around the instrument? What will better show and is considering increasing orders. Think what the context? can indicate such activity? What data can show

it?

What will improve the signal? What will help

filter out weaker companies, currencies? What When thinking about sentiment analysis, think will show the elements of the situation that about sentiment trend analysis: whether it is matter when you are in a position? What data increasing or decreasing, which is also valuable 025 can prolong the position? What news can information. Try to find the sentiment trend and shorten a position? ask yourself what makes it rise or fall. Sentiment

data will be used for that very purpose.

Post-trade analysis: what else worked, what did

you not take into account? What data would still A separate topic is the new risk analysis, be worth having? Is it financially viable? Can you focusing on the sources within the company have data for half a million for a few thousand, itself and in its environment. Again, alternative perhaps? data will help us a lot in this. It is a topic on

which tomes can be written today, and many

Try to support your decision-making process at will be written as new data becomes available. multiple important points using different types

of data. This type of thinking will prevail in the When thinking about data, don't just think future (in my opinion), and doing so will give you about one type; it can be confusing. You can an advantage. Traditional portfolio managers estimate the same process in many ways, look focus too much on one type of data and one for it and look for reliable yet cheap sources. type of tool. Think about duplicating important data, look at

a process through the prism of many different

Think about what data will show the agility of a data; the best ones do that. This way, you company at multiple points? I am referring to reduce risk. production, management, recruiting new people. What factors will allow evaluating the Over time, analyzing and forecasting the innovativeness of the company? What data will positions of major investor groups will become show interest in the company's products? For an additional interesting tool. example, what are the trends among major

customer groups? Do you know what the main In short, the fight over the next few years groups that buy the company's products are? will be for better instrument selection

What are the main groups of customers who buy

the company's stock? What are the trends in

their sentiment? Where do you get such data?

Are you able to estimate them somehow? One N

effective way of estimating is to build yourself a EW

social gatherings) among the key customers of ITY network of contacts (conferences, networking, C

the companies and ask their opinion from time RT

to time. It still works today and will be DA

irreplaceable for a long time to come. RE

026 NEW CITY TRADER

 

(e.g., companies). Over time it will shift to a children are not only running but running faster and

battle for earlier entry and better signal faster. utilization among the top companies. I will be

following this evolution closely. Today we are moving from static black and white

photography to a colourful, dynamic film shot in 4k

Evolution and dynamics are the keywords in the technology. In it, we have shots from the front, from

future. We are used to the fact that, for example, the side and drones above. And once we get used to

companies' data is given every quarter, and for this this new image, we never go back to the old one.

time, it is a static result.

Our next article on alternative data will feature tips on

Meanwhile, it is just a photograph of a more complex, getting the most out of AD and what strategy to adopt

dynamic process. It's like photographing children in the fund. running - the photo itself is a picture of a very dynamic

process. A lot is going on in and around the

companies themselves. The world is speeding up;