Leveraging machine readable news and social media updates is an emerging approach that’s thus far been adopted by trading firms and hedge funds with significant technology and quant expertise. EOTPRO is now looking to broaden the usage of MRN through is web portal, and IntelligentTradingTechnology.com found out more from CEO Bill Dennis.
Q: How did EOTPRO Developments get started, and what is its product and customer focus?
A: EOTPRO Developments launched in 2006 as EndofTrendTrading on the TradeStation Platform as an add-on provider for the retail trader. Once EOTPRO was launched we continued to build new analysis based on customer feedback. As our business increased, we expanded to include different markets and created leading edge products and services that offered high tech solutions for our clients. In 2008 and 2009 we branched out to provide analysis to other charting platforms.
Our product line and services have changed dramatically over the last few years to service more professional traders and institutional clients.
Q: What products does the company offer and what kind of analytics, markets and trading interfaces do they support?
A: EOTPRO offers the following analytics and services:
– Machine Readable News (Aggregation and Display via a web-based portal)
– Risk Analysis Systems
– Technical Indicators
– Co-location Services
– Professional Programming Services
EOTPRO products and services support equities, ETFs, indices, and associated derivatives (options; futures). Forthcoming initiatives focus on foreign exchange.
Our technical indicators are currently available for TradeStation, MultiCharts, NinjaTrader, E-Signal, and we are expanding into MetaStock, TradingView, and other professional platforms.
With regard to the MRN Portal specifically, we have commenced discussions with the key web development and hosting providers to facilitate integration of our portal and/or components into our clients’ online trading tools.
Q: When did you introduce your Machine Readable News offering, and how does it complement your other products?
A: EOTPRO commenced beta testing of its Machine Readable News (MRN) Portal during the fourth quarter of 2012.
It complements our product suite because the offering is a natural extension of our technical analysis tools as it provides another piece of information to confirm/invalidate signals. It also provides the research-oriented trader/investor with new ideas that deserve further investigation.
Q: Where does the news content come from, and what does your MRN product actually do?
A: Using content from over four million websites and blogs as well as 40+ news sources, the Thomson Reuters’ MRN offering delivers an enormous amount of real-time news and social media sentiment information to support trading and risk decisions. Given a) the licensing fees; b) the technical acumen and staff needed to integrate this vast amount of data; and c) the interpretive skills necessary to understand how to utilise the data, the market has been relatively limited to quantitative hedge funds and research teams.
EOTPRO broadens the market opportunity by addressing the three limiting factors addressed above. Specifically, EOTPRO:
– Consumes and aggregates the MRN content, including the creation of a number of derived indicators for short-term and long-term traders;
– Provides an intuitive visualisation tool that allows for real-time decision making via a vast array of sentiment indicators;
– Hosts, maintains, and updates the content and analytics set available within the portal.
Q: Why Thomsom Reuters as your news partner? Will you expand to other news providers?
A: We consume Thomson Reuters News Analytics Data for two reasons:
First, we feel they have the strongest, broadest news analytics offering and brand in the marketplace;
Second, they truly understand our vision and have been extremely accommodative since day one in terms of providing us with all the resources necessary to support our development and distribution.
Regarding expansion, EOTPRO realises that a consolidated news and social media sentiment offering would be a natural extension to our existing solution.
Q: So what about social media sources? Is this something you are looking at?
A: Through its relationship with Moreover Technologies, Thomson Reuters MRN monitors sentiment from over four million social media sites and blogs. Our portal offers a real-time graphical display of the ten stocks with the highest positive and negative social media sentiment.
We are planning on broadening the social media sentiment indicators within our portal and, in conjunction with Thomson Reuters, are always looking at new sources and analytics to support our efforts.
Q: You offer co-location services too for certain markets. What segment of your customer base is using co-lo? Is it a growing business?
A: Co-location clients span the gamut from individual traders to financial institutions that are offering algorithmic trading capabilities to their clients. We launched co-location services in 2011 and have seen a 72% increase in users since inception.
Q: What do you see as the next product and corporate development for EOTPRO?
A: From a product perspective, EOTPRO is focusing its near term development efforts on enhancing the Machine Readable News web portal functionality and content, specifically:
– Broadening asset class coverage to include foreign exchange and commodities; Incorporating Canadian equities.
– Expanding online research capabilities to support the needs of our hedge fund clients and more demanding traders.
– On the corporate side, we’ve recently added two seasoned fintech professionals to drive the sales and business development activities across North America.