News as a Circuit-Breaker | Recorded Future
Predict 21: The Intelligence Summit Register Today

News as a Circuit-Breaker

June 30, 2010 • Chris

[Cross-posted from Predictive Signals]

While researching another project, I ran into these two posts discussing news analytics.

http://ftalphaville.ft.com/blog/2010/01/26/134561/rise-of-the-news-reading-machines/

http://ftalphaville.ft.com/blog/2009/11/04/81356/why-trading-machines-dont-like-news-releases/

One quote that particularly caught my attention was this:

“If something big comes out on a company, computer traders can set up a sort of circuit-breaker which trips and pauses the computer trading programme.”

This echoes something we’ve been hearing a lot from the people we speak to. A first approach to taking advantage of news and pre-news (government filings, twitter, etc) may be in using these signals to alert a trader that their trading strategies might be inappropriate for a given time period. Perhaps if you know that a major product release, government approval or court case is being announced on a specific day, its not a day you trade that stock with your established trading strategies. At least until after the initial activity around the event.

Since assessing future events is one of the things we do, we’ll be taking a closer look at this in a future blog post.

New call-to-action

Related Posts

How The Stadtwerke Klagenfurt Group Reduces Risk to Critical Infrastructure

How The Stadtwerke Klagenfurt Group Reduces Risk to Critical Infrastructure

November 17, 2020 • The Recorded Future Team

Key Takeaways The Stadtwerke Klagenfurt Group delivers essential municipal services,...

Security Intelligence Handbook Chapter 2: Examining Operational and Strategic Security Intelligence

Security Intelligence Handbook Chapter 2: Examining Operational and Strategic Security Intelligence

November 12, 2020 • The Recorded Future Team

Editor’s Note: Over the next several weeks, we’re sharing excerpts from the third edition of...

How Predict 2020 Disrupted the Status Quo

How Predict 2020 Disrupted the Status Quo

October 9, 2020 • The Recorded Future Team

While Predict 2020 looked a bit different this year, the world’s largest security intelligence...