How to Get Reliable Alternative Data?
Technologies like web scraping and web crawling help dig out relevant information from the most unexpected data sources. Machine learning helps iron out unstructured data in a quantifiable and relatable manner. Advanced applications of AI/ML help generate actionable insights for traders. Technologies like IoT and big data analytics help remove the noise and extract the relevant information.
Alternative data is sourced from social media, geo-location data, payments by big companies, credit card transactions of influential individuals, transactions at points of sales, satellite imagery, and more. Although they may seem disconnected from price charts on your platform, the growing popularity of alternative data underlines the efficacy of information extracted.
Using multi-asset data and depicting the same via visual tools can help traders recognise opportunities early. Brokerages can use such information to deliver timely updates directly to traders via an SMS on their mobile phone or emails to their inbox.