TradeTide

Inspiration

"Elon Musk’s tweets are moving markets — and some investors are worried " This was the headline by a leading financial blog. In an age where information travels at the speed of light, we find ourselves witnessing the incredible power of a single individual's words. Elon Musk's tweets, echoing across the digital landscape, have the remarkable ability to set financial markets in motion.We were very inspired and driven with problem statement presented by Optiver. It was really a mathematically challenging problem that enable to write your own trading algorithm and the development environment was really friendly to start. We were determined to cash this opportunity with our own model.

This challenge also covers one of the subgoals of SDG goals of UN and serves as a fin learning exercise to understand how trading and hedging functions.

What it does

It uses market making and simple sentiment analysis of the news to trade the stocks. We have kept our algorithm pretty simple, We are classifying sentiments as three values : Good, Neutral, Bad. In case the sentiment is neutral , we do nothing major, In case the sentiment is positive we trade, in case the sentiment is negative we do hedging.

How we built it

We used Optiver's optibook, boilerplate and documentation to become familiar with the environment. The Optibook uses Amazon's Cloud9 environment to interact with the virtual exchange. We have written the code and ran it against live data stream and social feeds to see the trade in Optivers Visualizer.

Challenges we ran into

Ah! There were so many challenges to begin with :

• Undertstanding of the platform(Optiver's amazing team was a saviour and they helped us navigate throughout)

• Many times our code breached the rules and self traded , we played with number if limit orders and kind of fixed it

Accomplishments that we're proud of

Finally we are really proud that we have undertaken a problem that was really challenging, started with the tool that we have never seen before and yet were able to build something substantial out it!

What we learned

While researching and building this tool, we realised the power of market making and market sentiments and how they are heavily affected by social media these days.

What's next for TradeTide

Improvements! Improvements! More Improvements!

Built With

• optibook
• python
• sentiment-analysis-online