Big data analytics example: Swarm Intelligence

Big data analytics example: Swarm Intelligence

At Major Markets Trading we regularly receive questions about the data used to compose our trading algorithms. These questions mainly concern the use of indicators. A trading algorithm can be based on timing, price, quantity or a set of indicators. In addition, other data sources (big data) are playing an increasingly important role in determining (trading) decisions.

Big data analytics

Big data involves quantities of data that are too large to be maintained via regular data management systems. The amount of data stored worldwide is growing exponentially. Just think of all the information that consumers store via social media. The government and companies are also storing more and more information about their customers and users. In addition, we are using more and more devices that store, manage and exchange information independently with other devices.

It is clear that big data can be used for many purposes. More and more directly usable information is also becoming available for traders and day traders.

Swarm Intelligence

A simple example of the use of big data in predicting price developments within the financial markets is swarm intelligence. With swarm intelligence, upward or downward movements are predicted based on what people say or think. For cryptocurrency markets, Twitter, for example, is a widely used platform. The company Crypto Analytics has developed the Twitter Crypto Swarm Analytics application, which predicts developments based on certain keywords. Besides the use of Twitter, there are also applications that are aimed at search engines such as Google.

Major Markets Trading offers automatic trading systems on forex and the German DAX30. More information about our trading algorithms can be found here.

Leave a comment

Send a Comment

Your email address will not be published. Required fields are marked *