Scraping For Trading Use Case: Keys To Trading Automation with web scraping

Scraping-For-Trading-Use-Case

Web scraping for trading offers a series of advantages for making investment decisions that you cannot miss. This technique allows you to extract historical data, follow stock movements in real-time and access different alternative data sources.

Trading Automation Use Case

We will explain it better with an example. At wScraper, we had the honor of helping a customer out of a critical situation. It was about a private investor who was going through a rough patch. His stock portfolio was beginning to falter, and he didn’t seem to be hitting a stock market move.

The client had used all kinds of strategies to improve the situation, but the losses persisted, and morale was beginning to decline. The investment world is very dynamic, stressful and requires a large volume of data to operate with good judgment. In fact, the client kept looking for new information but kept failing.

In addition, he had to fight the uncertainty and inherent risk associated with any investor, especially if you bet on an SME or exotic financial products. Information, knowledge of the sector and handling the appropriate data is essential in this environment, and that is where web scraping can be a key tool.

Planning The Data Collection Strategy For Trading

So the first step was to create a database that would streamline the customer search process. We have your opinion on the matter to carry it out, and we determined that we needed a series of key data. First-hand and safe economic sources, the most important risks to take into account, the companies’ latest movements in their portfolio or important fluctuations are some of those we took into account.

In an investment strategy based on data, it is of paramount importance that the data is well structured and that it is safe since the decisions derived from them can generate large losses. That is why it is vitally important to have a technological partner for the extraction of the same ones that, in addition, can guarantee us legality and anonymity.

This strategy can be applied to any type of investment since they all revolve around a series of essential data. Ensuring the quality of the data, the investor’s expertise in determining which data is relevant will be the key to the success of the strategy.

The future of a corporation can be determined with data as disparate as the sentiment analysis on social networks, the number of visits to its web pages, the fluctuation of the sale price of its products or services, the job offers that they publish on their own web pages or portals …

Once the data has been identified, it can be extracted in an automated way and processed.

Finally, our client managed to come back thanks to the good use of the analysis that we offered him, allowing him to carry out some more accurate and secure operations. Or at least we like to believe that we had a lot to do with it!

This strategy can be applied to any business since they all revolve around a series of essential data. All you need to do is identify them and perform a screening. We can then create a specific database for almost any type of business. You just have to filter the information and achieve a market study as accurately as possible, with which to make the right decisions.

Finally, our client managed to come back thanks to the good use of the analysis that we offered him, allowing him to carry out some more accurate and secure operations. Or at least we like to believe that we had a lot to do with it!

What Are The Benefits Of Strategies Based On Scraping?

The first is the recovery of lost competitiveness. There is a volume of data that allows operating more efficiently and adapts to the market’s needs. By automating this task, portfolio management is more efficient, and investment strategy is better analyzed.

The second critical benefit is in the profits. With web scraping for trading, you can instantly know the fluctuations in the market and apply corrective measures simultaneously. The result? A return to the profit path, with profits close to 4% per month on our client’s portfolio, and an accurate and invaluable stock market analysis.

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