Inspiration

We wanted to understand how real trading firms react to fast-moving markets. The Optiver challenge was a perfect chance to combine news analysis, market data, and algorithmic decision-making into one system.

What it does

Our algorithm trades instruments and uses social feed messages to predict which ones to sell or buy. It also takes dual listings and adjusts the price to hedge.

How we built it

We built a news engine to analyze news messages and give an impact score for every stock. The logic regarding dual trading is handled in the function dual_logging.

Challenges we ran into

It was very challenging to understand the topic, as all of us were new to trading. We struggled to understand what the best course of action would be for a market maker in a certain situation. Additionally, due to the fast-paced environment, testing was difficult.

Accomplishments that we're proud of

Our code achieved positive PNL during previous tests, with approximately linear growth over a longer span of time.

What we learned

We learned a lot about algorithmic trading.

What's next for MarketSense

In the future we would like to include embedded representation of the training sets and "real"-learning.

Built With

  • python
  • training-data
  • vectorized-representation
Share this project:

Updates