Tuesday, June 26, 2007
NLP to Earn Big Bucks
The NY Times covers news mining algorithms designed to digest the volumes of information available on the Internet in news articles, journals, studies, and legal filings. Financial institutions are using these programs to generate massive amounts of stock trades, easily replacing large staffs of analysts. Much like reactive day-traders who launch waves of trades based on buzzwords found in headlines, these systems look for key words & phrases known to be trade triggers to predict movement of individual stocks and sectors.