DCM Capital Launches Trading Platform Based on Sentiment Analysis

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DCM Capital founder Paul Hawtin claims sentiment derived from social media can predict stock market movements.

"Twitter Fund" founder Paul Hawtin has launched a new trading platform based on the sentiment derived from social media sites such as Twitter and Facebook.

DCM Capital's DCM Dealer tracks stocks, indices, foreign exchange and commodities on social media, creating a sentiment score deduced from positive or negative comments on social media.

DCM Dealer's launch comes a full 18 months after the Twitter Fund's spectacular rise and rapid fall, which Hawtin at the time put down to a mixture of bad luck and not possessing the required capital to sustain a hedge fund.

Hawtin relaunched the company, formerly Derwent Capital Markets, as DCM Capital in May last year and launched the pre-cursor to this trading platform─a real-time sentiment app─two months later.

"Our aim is to create a community of better informed traders," he says. "Today, social media creates a vast amount of information and it has been proven that the sentiment derived from it can predict stock market movements. For the very first time, we are connecting this information source to the trading community, opening up the universe of social media data so traders can make more informed buying and selling decisions."

Today, social media creates a vast amount of information and it has been proven that the sentiment derived from it can predict stock market movements.
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