Dow Jones Newswires and Thomson Reuters are among the news providers reporting huge interest in news feeds that examine keywords in news articles to forge trading strategies, FX Week reports. Dow Jones, which introduced a foreign exchange (FX) news and information product DJ FX Trader in January, is witnessing rising enthusiasm for its machine-readable elementised news feed. Some participants, however, are doubtful whether automated feeds can genuinely add value for FX traders.
The rise in popularity is reported as traders are now willing to set potential implementation decisions based on scheduled data releases, such as non-farm payrolls or central bank minutes. Interest in news-based strategies is set off mainly by big hedge funds seeking to keep their trading ideas to themselves and secretively back-test any potential new strategies.
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