ExpertRiver Bows Macro Sentiment Data

UK-based analytics vendor ExpertRiver is expanding its range of analytics to include market- and sector-based investor sentiment indicators, officials say.
The new analytics will generate real-time sentiment scores of between zero and 100 for 25 global markets and 10 industry sectors, based on the percentage of traders that are bullish on a given market or sector.
The vendor launched its Real-Time Predictive Market Analytics earlier this year, using real-time data collected from retail derivatives brokers to rank the performance of active trading investors, generating sentiment indicators based on the aggregated views of the most successful traders.
"We might look at the top percentile of traders and generate an indicator saying that 70 percent of those are bullish on a given instrument," says ExpertRiver chief executive Dobromir Todorov. Clients can also broaden the analysis to include investors beyond the top percentile, he adds.
Todorov says the vendor began calculating analytics for roughly 60,000 instruments-including individual stocks, equity indexes, currency pairs, commodities and more obscure assets such as house price derivatives-but is adding the sector- and market-based sentiment indicators to its coverage to summarize the most successful traders' views on broader markets.
In addition to tracking sentiment indicators in real-time for use as an input into automated trading or risk management models, clients can also use the data to build additional analytics-for example, to track the rate at which investor sentiment changes for a particular instrument.
ExpertRiver makes its indicators available as a datafeed that can either be integrated into applications via third-party data distribution platforms, or accessed directly in spreadsheets via an Excel add-in, and also provides six months of historical data.
Todorov says the vendor calculates and distributes the indicators in real-time, though the update frequency depends on the liquidity and level of investor activity in each instrument, ranging from 10 updates per second for the most liquid instruments to one update per day for less frequently traded instruments.