eToro launches cryptocurrency trading strategy based on Twitter sentiment

advertisement

Trading platform eToro launched on Tuesday a social media sentiment-based trading strategy for its cryptocurrency traders.

The strategy, aptly named TheTIE-LongOnly CopyPortfolio, is available to eToro users through a partnership with The TIE, a cryptocurrency data analytics platform. eToro users trading this strategy will open cryptocurrency trades based on positive sentiments on Twitter.

According to The TIE, the platform's "proprietary machine learning and language processing models ingest 850 million tweets per day, quantifying the positive and negative tone of conversations on Twitter." The platform then leverages this data and allocates trades based "on positive sentiment, algorithmically rebalancing once per month."

“In traditional markets, retail investors have historically lagged behind the ‘smart money’ when it comes to the data and tools available to them,” said Guy Hirsch, US Managing Director of eToro. “This puts individual investors at a major disadvantage. In the spirit of crypto and decentralized technology, we believe that offering institutional-grade tools to every investor will level the playing field and democratize investing.”

The TIE launched this trading strategy in October 2017. So far, the algorithm has generated a 281.% return after fees, compared to a 41% return generated by Bitcoin alone, according to an eToro blog post

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Will Sanctions Drive Russia into the Arms of Cryptocurrencies?

From the removal of many Russian banks from SWIFT to a seemingly constant flow of new sanctions, Russia’s invasion of Ukraine has left many to wonder: Is the country likely to lurch towards cryptocurrencies? And if so, what does this mean for businesses that are holding and/or using crypto? Crypto and sanctions evasion Although crypto […]
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC
More