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Data-driven trading strategy

What is the data-driven trading decision?

Data-driven investment is an approach to investment that involves using data and analytics to make investment decisions. This approach relies on a variety of sources of data, including financial statements, market data, and economic indicators, to identify investment opportunities and manage risk.
Furthermore, the data-driven investment allows investors to make more informed decisions by taking into account a wider range of information, including historical data, current market conditions, and company performance. This approach can help investors identify patterns and trends that may not be immediately apparent through other methods of analysis.

Why is a data-driven trading strategy better than only using technical analytics?

Data-driven investment is often considered more reliable than technical analysis because it is based on objective data rather than subjective interpretations of market trends. Technical analysis relies on interpreting charts and patterns to make investment decisions, which personal biases and emotions can influence.

How does TradingFlow adopt the concept of a data-driven trading strategy?

Take our flagship product - Option Flow as an example, the Smart Option Flow can assist traders in various ways, such as identifying potential trading opportunities when option prices deviate significantly from their expected values due to unusual trading activity. It can also alert traders to notable events within a stock, sector, or the overall market through unusual options volume, which can provide insight into market sentiment by analyzing options volume, stock price, and implied volatility.