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Alternative Data Examples for Quantitative Trading

Article Quant Q&A · Author: phdstudent
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Summary

The document asks for examples of using large or unconventional datasets to build trading strategies across stocks, bonds, and foreign exchange. Its only concrete example is the use of location data by investment managers. The cited news story describes satellite observations as a way traders may monitor activity related to physical commodities, illustrating how data about locations and real-world activity can inform investment research.

The exchange offers a pointer rather than a strategy specification or literature survey. It does not explain how to collect, clean, validate, or translate location observations into signals, nor does it report backtest results or trading performance. As a result, the example is useful as an illustration of alternative data sources, but it does not establish that the approach is predictive or profitable. Researchers would need to assess coverage, timing, measurement error, and the link between observed activity and asset prices before using such data in a systematic strategy.

Key ideas

  • Location data is presented as an alternative data source used in investment management.
  • Satellite observations can provide information about physical activity relevant to commodity markets.
  • The exchange supplies a news pointer rather than a reproducible trading strategy or survey.
  • The data’s predictive value and trading performance are not demonstrated.

Tags

CommoditiesMachine learningEvent-driven
Full text
# What are good examples of using Big Data for a trading strategy?


# What are good examples of using Big Data for a trading strategy?












As the title say, I am looking for trading strategies in the stock, bond, forex market, that rely on the usage of Big Data. The more out of the box strategy the better. Also if anyone knows any literature survey on the usage of Big Data in finance ... feell free to share.

## Answer by user42108 (score 1)

https://quant.stackexchange.com/a/61200

There have been several publicly available stories on the use of alternative data in investment management, including the use of location data by hedge funds. Here is one pointer: https://www.bloomberg.com/news/articles/2017-12-16/satellites-are-reshaping-how-traders-track-earthly-commodities.

Shown in full with attribution under the source's licence. Licence: CC BY-SA 4.0 (Stack Exchange)

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.