From the course: Algorithmic Trading and Finance Models with Python, R, and Stata Essential Training (2019)

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Textual analysis and algo trading

Textual analysis and algo trading

From the course: Algorithmic Trading and Finance Models with Python, R, and Stata Essential Training (2019)

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Textual analysis and algo trading

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- [Instructor] Now one of the most popular types of algorithmic trading strategies revolves around the use of what's called text data. Text data, as the name implies, is something where it's not just numbers that are coming in, but instead all kinds of qualitative information. It could be articles about stocks, as an example, transcripts from conference calls with the company, whatever. This type of analysis is often called textual analysis or natural language processing, sentiment analysis, content analysis, computational linguistics. Whatever term you use, essentially textual analysis is just about trying to pull this qualitative information, this text data, and turn it into quantitative signals that we can trade on. The rise of textual analysis is due to a variety of factors. Bigger and faster computers, better availability of text, new technologies from search engines from Twitter, from Facebook, et cetera. A variety of different types of data sources. There's a motley assortment…

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