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Thursday
Mar242011

The StockTwits Trading Brain Synchronization API

A few weeks ago, when the Egypt crisis erupted, I told Aris David, a member of our Creative Space, that I wanted to allocate long capital to the sharpest Middle East stock market sell-off for a Levy Flight arbitrage.

Unfortunately, The Egyptian Stock Market closed down when the Government collapsed. We walked away from the situation without a trade. What was left though in both our brains' databases was this hunch:

 

Sharp Middle East Stock Market Sell-off ===> Allocate Capital


Yesterday the Egyptian stock market re-opened for business. As expected, this market sold off sharply. It became time to synchronize our brains and hunches.

Aris sent me the following Twitter direct message at 15:33.

Check out $EGPT it’s only falling because the Egypt exchange has re-opened now pricing in what happened a few weeks ago.

I answered:

Kind of stupid no?

At 15:39 I posted on StockTwits

In $EGPT oh maaaan

This morning I unwounded our position for a $.50 gain.

All of this is made possible by this:

 

Brain1   <------->  Twitter API   <------->  Brain2

 

None of this would have had happened without Twitter and StockTwits. Everyone knows that the Harvard network is a very powerful network. What is not obvious right now is how powerful that little global brain API is becoming. The best global brains will connect via this API or another frictionless API to create networks much more powerful than current networks surrounded by garden walls.

 

Written by Michael Bigger, author of How Traders Achieve Creative Flow.

 

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