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Sentiment Analysis Algorithm
Chris Look
posted Aug 10, 2017

Hi! My name is Chris and I am part of a company called Senvision.

We aim to give millennials the tools we never had to invest with. This is the algorithm we have developed to run in the background so that our customers can leave their money alone. It uses sentiment analysis with twitter to predict whether a company will rise or fall the next day. Currently, we invest in 8 companies: Google, Apple, Boeing, Procter & Gamble, Merck, Walmart, Intel, and JP Morgan Chase. All the analysis is done on a server on our end, and the results are uploaded to web published drive files. We are releasing this for free to be able to tell our first customers that not only have we, the founders, made money with our algorithm, other people have too. This algorithm takes advantage of Robinhood instant, and its promise of free trades and instant reimbursement of money, so you must have that to use this. To use it, click Live trade algorithm and connect with your Robinhood account. We would love for you to try it out and tell us how it goes in the comments!

IMPORTANT NOTE
To use the algorithm, you must uncomment the 3rd instance of fetch_csv and comment out the 2nd one. The instructions can be found in the code.

P.S. We are not entering this in the Quantopian contest because it uses fetch_csv, and the contest does not allow that.

Chris

4 responses
Viridian Hawk
Aug 10, 2017

Hi, Chris -- great, thanks for sharing this!

How long have you been live-trading it? I'm curious how much out-of-sample data you have collected to confirm its efficacy.

Peter Bakker
Aug 11, 2017

Hi Chris. With a fixed asset listy you limit future development. Wouldnt it be better to make the asset list dynamic so you can add signals.

Secondly, I tried to open yiour live trade file and it's not accessible

Chris Look
Aug 11, 2017

Hi Peter Bakker,

Thank you so much for your feedback! For your first question, we would like to have more companies in the list, but we search twitter for tweets relevant to the company and train a model with that data, so we are limited by the twitter API, which can get very expensive very quickly. Thus we have limited the companies we find sentiment signals for to 8 companies. We plan to add signals in the future, but that would be after this free version.

Secondly, the link for the live trade file worked for me from a separate account. Here is the link we had: https://docs.google.com/spreadsheets/d/e/2PACX-1vR4zi6MD7t1kLXBqUmpjggyjSQDIUITZK0MGgNyAKEBRr7ue4LtPdoV0SAs6wT6-kIQpRJCp3urrImT/pub?gid=1607988061&single=true&output=csv. It should download a csv to your computer. What is the error you're getting?

Chris

Chris Look
Aug 11, 2017

Hi Viridian Hawk,

Thank you for your response. We used a version of this algorithm with News data instead of twitter for 4 months from April 2nd to June 27th, and it made 5.5% returns on 2,500, while the SPY made 2.4%, and the average returns of the 7 companies over that time period was 2.7%. (We did not have an algorithmic way of actually executing the trades so for those months I had to do the trades myself on Robinhood using our output predictions). We did not include Google in our investments because we did not have enough money to make a $1,000 position only 1/8th of our portfolio worth, which is why we only included 7 companies in our average. We had to stop using it for a bit because the news API we were using cut our rates by 7x so we were not able to get enough data a day to make predictions. We have started using this algorithm again using the twitter data we were collecting since Sep 2016.

I hope this clarifies things, let me know if you have anymore questions
Chris

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