‘Crypto Twitter Sentiment’ Algo Claims 281% Returns After Reading Bitcoin Tweets

The brokerage firm points out that TheTIE-LongOnly CopyPortfolio will open trades on the basis of positive Twitter sentiment. The machine learning-powered algorithm will analyze over 850 million tweets daily to gauge cryptocurrency and bitcoin sentiment.

What’s more, eToro claims that the crypto Twitter-based trading strategies have led to returns of 281 percent after fees in the past two years. The annualized return of the trading strategy is 123 percent, which outpaces the 29 percent return delivered by an equally-weighted basket of identical underlying crypto assets.

eToro claims that the algorithm has also beaten bitcoin’s 41 percent return over the past two years. So, the premise of the Twitter-based investment strategy looks promising given the track record over the past couple of years. But what’s the reason why this strategy seems to be working so well so far?

Reference: https://www.ccn.com/twitter-etoro-sentiment-tool-crypto-bitcoin/

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