Hedge Fund Turns to Twitter for Trading Model
An actual hedge fund putting real money on the line shows just how valuable a social network can be. But, as the Observer points out, there is potential to game the system. It would be simple enough, it seems, to create an army of Twitter bots that spit out messages to manipulate the fund's trading model. With only one hedge fund riding the Twitter wave right now, though, it hardly seems worthwhile for scammers and frauds to target Twitter and manipulate the market. Derwent will put the new system into action in February, and we'll just have to wait until then to see how effective social networking-based trading will be.