Neuronal Network - News-Based Trading Bot, Could It Work?

Why this could work (at least theoretically):​

1. Real-time Analysis of News: AI could scrape millions of news articles, financial reports, and social media content for sentiment analysis (Is the news positive or negative for the market?).
2. Learning from Past Events: The AI could be trained on +20 years of historical market data and news to learn what typically happens after certain types of events + real test with actual market with our own trading website where she can put fake trad and learn. For example, how the market reacts to interest rate changes, geopolitical events, or earnings reports.
3. Autonomous Trading Decisions: Once the AI understands the sentiment, it could make real-time trading decisions automatically based on news analysis. It could buy or sell based on its predictions about how the market will move in response.
4. Reinforcement Learning: The AI could improve its own performance over time by running simulated trades in historical data and learning from both its successes and failures. This makes the system smarter and more adaptive as time goes on.

Why I think it might be a viable alternative:​

• Speed: BlackRock and other big players already have AI and algorithmic trading systems in place that react to market events in milliseconds. While I don’t have access to the same resources, an AI like this could still be pretty effective if it can analyze news quickly and act within the first minute or so after an announcement.
• No Gambling: Unlike regular trading, where you bet on random fluctuations, this system would base its decisions on data and logic, not speculation. If done right, it could turn trading from a gamble into a strategy.

My Plan: Build a News-Driven Trading Bot​

• A bot that scrapes real-time news (from thousands of sources)
• Uses NLP (natural language processing) to analyze the sentiment of each article
• Leverages machine learning models to make predictions about market reactions
• Trades based on these predictions, continuously learning and optimizing its strategy over time through reinforcement learning.

A Quick Note on the "Bullshit" Bots:​

Final Thoughts:​

tobi__sb said:

Hey everyone,

DISCLAMER : I'm not going to do that, at leats yet cause focus on my main company, just would like to talk about it with you guys to know your opinion.

I’ll be honest upfront: I’m not a fan of trading. In my eyes, unless you're a true expert with deep knowledge of market analysis, it seems more like gambling than investing. It's a high-risk, high-reward game where most people are just playing at odds without real expertise. That said, after seeing what BlackRock's Aladdin system and other big players are doing, I started thinking about how AI could completely change the game.


Here’s what I’m thinking:

Instead of relying on traditional trading strategies or just following market trends, why not use neuronal system train on +20 years, that analyze market and news in real-time and predict how market movements could play out based on new information? It’s a simple concept at its core, but it could be really powerful with the right implementation.

Why this could work (at least theoretically):​

1. Real-time Analysis of News: AI could scrape millions of news articles, financial reports, and social media content for sentiment analysis (Is the news positive or negative for the market?).
2. Learning from Past Events: The AI could be trained on +20 years of historical market data and news to learn what typically happens after certain types of events + real test with actual market with our own trading website where she can put fake trad and learn. For example, how the market reacts to interest rate changes, geopolitical events, or earnings reports.
3. Autonomous Trading Decisions: Once the AI understands the sentiment, it could make real-time trading decisions automatically based on news analysis. It could buy or sell based on its predictions about how the market will move in response.
4. Reinforcement Learning: The AI could improve its own performance over time by running simulated trades in historical data and learning from both its successes and failures. This makes the system smarter and more adaptive as time goes on.

Why I think it might be a viable alternative:​

• Speed: BlackRock and other big players already have AI and algorithmic trading systems in place that react to market events in milliseconds. While I don’t have access to the same resources, an AI like this could still be pretty effective if it can analyze news quickly and act within the first minute or so after an announcement.
• No Gambling: Unlike regular trading, where you bet on random fluctuations, this system would base its decisions on data and logic, not speculation. If done right, it could turn trading from a gamble into a strategy.

My Plan: Build a News-Driven Trading Bot​

I’m not an expert in finance, but I know AI pretty well, and here’s what I’d want to build:

• A bot that scrapes real-time news (from thousands of sources)
• Uses NLP (natural language processing) to analyze the sentiment of each article
• Leverages machine learning models to make predictions about market reactions
• Trades based on these predictions, continuously learning and optimizing its strategy over time through reinforcement learning.

The goal is to make a bot that’s smarter than your average retail trader, reacting faster and more effectively to breaking news. Ideally, it would be able to adapt and improve, just like a seasoned trader would over time.

A Quick Note on the "Bullshit" Bots:​

I’m not talking about the typical "get-rich-quick" bots that you see on TikTok or YouTube, where influencers promote magic systems that supposedly work like a charm. You know the ones — where they promise you’ll make thousands just by clicking a few buttons. That's all nonsense. What I’m talking about here is real, serious AI, something that, if it works, will never be shared publicly because it’s too valuable and look for 1-3 safe % / month. This is more about real trading intelligence than quick profit schemes.

Final Thoughts:​

I’m not looking to become a full-time trader or make quick money. This is more of an experiment, a project to see if AI can actually outperform the typical market strategies. It’s not about luck or "beating the market", it’s about creating a system that can learn and trade based on real-world data in a meaningful way.


I’d love to hear your thoughts on this. Do you think AI-driven news-based trading could work, or is it just another overhyped idea? And if anyone has experience with something similar, I’d love to hear how you approached it!


Thanks!

Click to expand...

tobi__sb said:

Hey everyone,

DISCLAMER : I'm not going to do that, at leats yet cause focus on my main company, just would like to talk about it with you guys to know your opinion.

I’ll be honest upfront: I’m not a fan of trading. In my eyes, unless you're a true expert with deep knowledge of market analysis, it seems more like gambling than investing. It's a high-risk, high-reward game where most people are just playing at odds without real expertise. That said, after seeing what BlackRock's Aladdin system and other big players are doing, I started thinking about how AI could completely change the game.


Here’s what I’m thinking:

Instead of relying on traditional trading strategies or just following market trends, why not use neuronal system train on +20 years, that analyze market and news in real-time and predict how market movements could play out based on new information? It’s a simple concept at its core, but it could be really powerful with the right implementation.

Why this could work (at least theoretically):​

1. Real-time Analysis of News: AI could scrape millions of news articles, financial reports, and social media content for sentiment analysis (Is the news positive or negative for the market?).
2. Learning from Past Events: The AI could be trained on +20 years of historical market data and news to learn what typically happens after certain types of events + real test with actual market with our own trading website where she can put fake trad and learn. For example, how the market reacts to interest rate changes, geopolitical events, or earnings reports.
3. Autonomous Trading Decisions: Once the AI understands the sentiment, it could make real-time trading decisions automatically based on news analysis. It could buy or sell based on its predictions about how the market will move in response.
4. Reinforcement Learning: The AI could improve its own performance over time by running simulated trades in historical data and learning from both its successes and failures. This makes the system smarter and more adaptive as time goes on.

Why I think it might be a viable alternative:​

• Speed: BlackRock and other big players already have AI and algorithmic trading systems in place that react to market events in milliseconds. While I don’t have access to the same resources, an AI like this could still be pretty effective if it can analyze news quickly and act within the first minute or so after an announcement.
• No Gambling: Unlike regular trading, where you bet on random fluctuations, this system would base its decisions on data and logic, not speculation. If done right, it could turn trading from a gamble into a strategy.

My Plan: Build a News-Driven Trading Bot​

I’m not an expert in finance, but I know AI pretty well, and here’s what I’d want to build:

• A bot that scrapes real-time news (from thousands of sources)
• Uses NLP (natural language processing) to analyze the sentiment of each article
• Leverages machine learning models to make predictions about market reactions
• Trades based on these predictions, continuously learning and optimizing its strategy over time through reinforcement learning.

The goal is to make a bot that’s smarter than your average retail trader, reacting faster and more effectively to breaking news. Ideally, it would be able to adapt and improve, just like a seasoned trader would over time.

A Quick Note on the "Bullshit" Bots:​

I’m not talking about the typical "get-rich-quick" bots that you see on TikTok or YouTube, where influencers promote magic systems that supposedly work like a charm. You know the ones — where they promise you’ll make thousands just by clicking a few buttons. That's all nonsense. What I’m talking about here is real, serious AI, something that, if it works, will never be shared publicly because it’s too valuable and look for 1-3 safe % / month. This is more about real trading intelligence than quick profit schemes.

Final Thoughts:​

I’m not looking to become a full-time trader or make quick money. This is more of an experiment, a project to see if AI can actually outperform the typical market strategies. It’s not about luck or "beating the market", it’s about creating a system that can learn and trade based on real-world data in a meaningful way.


I’d love to hear your thoughts on this. Do you think AI-driven news-based trading could work, or is it just another overhyped idea? And if anyone has experience with something similar, I’d love to hear how you approached it!


Thanks!

Click to expand...

agent23 said:

this is very interesting, I had kind of the same idea in mind months ago, wondering if AI can predict the market and outperfom top traders

Click to expand...