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ChatterQuant Review on Data Driven Investments

For years hedge funds, quantitative funds, and big banks have been using social sentiment data for making trade decisions. This data was costly to obtain. In fact, it required a scale to justify the development of social sentiment data programs to aid trade decision-making. ChatterQuant makes real-time social sentiment data accessible to the retail trader with speeds equal to that available to Smart Money hedge funds. For some, ChatterQuant may be the right tool to make their trading decisions. As traders, knowing when the “chatter” is beginning to spread BEFORE the big move is key. This ChatterQuant Review will go through the ChatterQuant platform and how a trader might use this unique service to their advantage.

ChatterQuant Platform Offerings

Trends

The information supplied by ChatterQuant (CQ) starts with their “Trends” tool.  This is the first thing you’ll see when you log in to your account. On this page you’re going to see how stocks are ranked, and how they are moving in terms of social mentions throughout the trading day.

ChatterQuant Review

The default is for Reddit (blue box highlighted above). Reddit data is provided for free, but you can also choose Twitter (premium feature) or create your own custom search by clicking it for a stock you are interested in. The Reddit and Twitter windows will have a conversation volume chart showing the top five mentions for the past 24 hours.

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This is combined with a chart of the top ten. Either “post upvotes” on Reddit or “Weighted by follower count” for Twitter. It’s interesting to keep an eye on what stock is climbing up or peaking and beginning to trend down.

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There’s also a list of the top 20 trending tickers on Reddit and Twitter which can be identified by timeframe, market cap (five sizes), or sector (about 20 choices Healthcare, Financial Services, Tech, etc.). If you’re a large cap trader you’d want to sort the Market Cap by “Mega” to get stocks like $TSLA or $AMZN

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In the upper right of the “Trends”, you’ll find the “social stocks of the day” (orange trophy) for Reddit (in the screenshot is $TSLA) and Twitter ($CEI). These have the most mentions in the past 24 hours. Below that is a graph of the Market sentiment that will be redder if negative. And greener if positive and a “most popular sectors” pie chart. Stocks with mentions tend to have a lot of volume and volatility and are great to look at for trading.

Market Sentiment

The default for the “custom search” is one of the “Social Stocks of the Day” on the initial Trend page. 

Custom Search

This is the place to get information about a stock and its social trending status very quickly. You have access to an overview, the latest news, recent Reddit and Twitter posts and comments, historical changes in mentions, and any options data. 

ChatterQuant Review of the Alert Center

The “Alert Center” provides you with a multitude of options for what will be pushed to you, as well as your recent alerts. By default, you’re signed up for every push notification. There are currently 8 push alerts. 4 are free, 4 are premium (currently) But ChatterQuant is in the process of adding more premium alerts. And you can define when you want to receive them.

Current Alert Offering:

  • REDDIT TOP TRENDING stock becomes the top discussed stock on Reddit. (free)
  • TWITTER TOP TRENDING stock becomes the most talked about stock on Twitter. (premium)
  • OLYMPIC MEDAL a stock is a top 3 trending stock on Twitter and Reddit. (free)
  • UNUSUAL DISCUSSION VOLUME notable spikes in discussion volume around a stock. This is one of the BEST alerts of the platform in my opinion. (premium)
  • RIPPLE Options Flow options activity that is above average or unusual. (premium)
  • TIDAL Options Flow large and unusual options activity on a stock. (premium)
  • TSUNAMI Options Flow incredibly large and unusual options activity on a stock. (premium)

Coming Alerts:

  • MOMENTUM ALERT high trade volume around trending tickers.
  • SHORT SQUEEZE ALERT unusual trade volume on a stock that has high sentiment and a high short-interest.
  • ROCKET CATCHER large move in a stocks price action of trending tickers.
  • PELOSI TRADE TRACKER Follow Nancy Pelosi trades (one of the most successful this year).
  • STOP-TALK dropping sentiment on trending and/or followed tickers.
  • SMART MONEY large block trades on trending tickers.
  • SWEEP ALERT large options sweep orders on trending tickers.
  • NEWS RUNNER a news catalyst that causes a spike in trade volume.

ChatterQuant Review of Options Flow

This section provides information on various sizes of put and call options activity ranging from $50,000 (ripple) up to over $500,000 (tsunami). Options flow can be an indication of the market’s thoughts on a stock’s future movement and thus call option and put option flow is very helpful to track if you’re looking to jump into a trade.

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ChatterQuant Review of Earnings and Charts

The earnings section has a calendar for the current and following week’s announcements. Hovering over the symbol shows the name. But adding a function to click on the stock and see the social data would be helpful in the future.

Earnings

Chart

The charting offered is a typical Tradingview style candlestick chart with 102 technical indicator options such as Weighted Average and Bollinger Bands.  While there is not much ability to customize this chart beyond indicators, it is sufficient for most traders to get the information they want quickly. 

Chart

Fundamentals

This section will take you to guruexaminer.io but the active gainers and losers window has a resizing issue. The “Financials” information provided is what you will find in a financial statement. There is a “technical analysis” graph that is a simple 10,000-foot view compilation of 26 different technical indicators. Clicking any symbol will open a new window for that stock. 

Fundamentals

Afterhours Futures

This tab shows what is happening in futures trading to see what may happen tomorrow at the opening bell.

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Education

Chatterquant has an extensive Educational Section with courses from beginner to advanced learning created through a partnership with the Bullish Bears. Yes! You’ll see our courses on this platform. This is a pretty cool feature of this ChatterQuant review.

Education

ChatterQuant Account Options

ChatterQuant offers two levels of account the free account, which provides Reddit data and education course access, and limited stock monitoring and site access; their full-featured ChatterQuant Pro account is on sale for $39/month and provides:

  • Real-time Data
  • Reddit, Twitter, News, Options Flow, Stock & Crypto monitoring
  • Real-time Stock Sentiment, Crypto and flow alerts
  • Full Website Access and Customized Search

Potential Trading Use

The Social data that is provided could be used by a trader that desires a good combination of signals that can help make trading decisions easier. Also, if they study the social behavior of the crowd using CQ, it becomes easy to determine what combination of alerts can preface a significant move in a stock up or down…before happens. 

The problem is that backtesting any plan is currently impossible, and there is no way to tell how successful any method would be.  The best use presently is by using the alerts and just trying to ride a wave that may be small and maybe large.  If there are a lot of mentions on social media, how long is it before the stock goes up or down?  And to what degree? This is quite hard (impossible) to say, and ChatterQuant is not giving much help with this regard.  ChatterQuant will undoubtedly be a valuable service for those willing to take the time and develop a system.

ChatterQuant Review Summery

We hope you enjoyed this ChatterQuant review. There are plenty of uses that the data provided by ChatterQuant can provide. This is a new trading style that relies on quick decisions and the assumption that the heard will follow a few influencers, which they do, and the fear of missing out is also a potent driver, as it panic selling.  For those who can develop a systematic trading program where you can identify the next Game Stop or Soluna and get out of a trade as the negative sentiment turns, the potential is excellent. 

As always, never risk in a single trade more than you are willing to lose, and good luck with all of your trades. 


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