The tool, which is bundled within TR‘s MarketPsych Indices, will use AI to feed its data stream information from over 400 sources. It will crunch the raw data gathered from social media posts and news articles into actionable insights for its clients. It also provides sentiment data for other financial factors ranging from companies to sovereign bonds.
Investors, accredited or not, will be able to benefit from the info provided in metrics such as “greed“ and “fear“. This will generate actionable leads for hedging opportunities and buy-sell operations when certain traits reach certain levels or fluctuate over time.
Thomson Reuters has long tracked crypto prices, and last year even began a push into the blockchain technology space. However, this is the first formal entry into the sector with a product tailor-made for traders.
While the entry into the sector is a novelty, global head of quant and feeds for Thomson Reuters, Austin Burkett, says investors will be familiar with the ultimate goal of the product.
“Our customers can use it to generate alpha. They can drive positive investment returns. They can use it to better balance the risk in their portfolios
AI I – Artificial Intelligence Investing
Thomson Reuters‘ new product is but another step in a growing trend among analysis-providing companies that are embracing AI. The general direction of the sector is using already-existing tools to gain leverage in the booming cryptocurrency sector.
Token AI and Santiment, crowd sentiment-specific firms, have been formed exclusively around this market niche – with a number of others emerging as prices for cryptocurrencies rose over the past years.
Richard Peterson, author of “Trading on Sentiment: The Power of Minds over Markets”, feels that while innovation is always key, it is yet to be seen if sentiment has real effect on digital currencies – which can only be done on a case-by-case basis.
“We have to detect whether it’s relevant to cryptocurrencies.”