In July 2015, Modern Trader profiled six financial technical (fintech) firms presenting unique alternatives to the existing financial media culture. Each firm offered greater transparency, accountability and actionable insight to traders.
Since then, these six firms — all with a significant technology component to their platforms — have taken incredible leaps as leaders in the evolving market of information sharing.
This month, we check in again with all six of these fintech firms and highlight their incredible stories as they continue to push into the mainstream.
Estimize’s earnings data boosts a remarkable track record. By crowdsourcing information from anyone who wants to contribute, the firm discovered that its earnings estimates are 70% more accurate than those projected by professional Wall Street stock analysts.
Investors have taken notice. The firm recently completed its series B round in which it raised $9 million, lead by WorldQuant Ventures and Euromoney Institutional Investor. The firm also released its Estimize Screener in the fall, making it easy for users to sort through an incredible trough of Estimize data.
One major change was the decision to make its platform completely “blind” in October. The firm says that it found that limiting a user’s ability to see the consensus before they entered their own estimate made the overall data much more accurate.
Earlier this year, the firm also released the Estimize Select Consensus. Today, the Estimize Consensus is a weighted average — more heavily weighting the most accurate analysts and more recent estimates and updated estimates. That has improved overall data accuracy.
And there is no shortage of new contributors. During Fall 2015, Estimize had 6,245 contributors versus 3,173 in Summer 2015. During the fall quarter, it reached 55,754 estimates on 1,727 stocks covered. It also added several significant hedge funds to its client base, including Point 72. But the biggest effort is the company’s release of Forcerank.
Forcerank is a game based on the design of Fanduel or Draft Kings. Players enter weekly games and are asked to rank stocks in a certain industry from 1 to 10 or how they think each company will perform for that week. Points are given based on how close your positions were in relation to the actual results. Games start Monday at the opening bell and end with the closing bell on Friday.
Finally, its seems that one major financial news network took Modern Trader’s advice in working with Estimize on improving information sharing on quarterly earnings estimates. The firm will be making a major announcement on its exclusive partnership in the coming weeks.
Dataminr is changing the way that journalists cover breaking news, and traders who use its news service obtain a significant advantage in discovering events in the markets.
In October 2015, Dataminr announced Dataminr Context and the advancement of the Dataminr for News product. The company announced this new product at Twitter’s Flight conference. The tool will deliver relevant groups of Tweets to journalists just minutes after a story breaks, and provide them with eyewitness accounts, images and videos and official updates from the source.
Dataminr has also been focused on expanding adoption of its public sector specific product. This product analyzes all publicly available Tweets for real-time information related to terrorist threats, social and political unrest, shootings, fires, transportation and other serious accidents, extreme weather and illness outbreaks. In addition, Dataminr has also been focused on expanding adoption of its corporate security offering for chief security officers and intelligence analysts.
Dataminr also was named a World Economic Forum WEF Technology Pioneer and relocated to a bigger office in Manhattan to accommodate its growth.
Tiingo’s user base has surged by 500% since the July 2015 cover story, says founder Rishi Singh.
“The platform has hit the front pages of ProductHunt and YCombinator’s HackerNews. Redditors also adopted the site, and I’m seeing daily registration rates 3X what they were prior,” he says.
Singh says that he has developed a stock screener that is unique from any other platform — one that allows individuals to create their own metrics and tap into a database of historical information.
“Tiingo has grown the database to more than 30,000 tickers, and we have more extensive fee data than even Morningstar,” Singh says. “The [user interface] has also significantly improved and just now we revamped the News feature with language detection algos that help it find articles other financial news websites/platforms miss. I’m working on licensing deals now as well to help distribute this news data and ease some of the work for new and emerging fintech companies.”
After all those results, it’s incredible that Tiingo remains a one-man shop. Singh is currently making strategic decisions about how to raise revenue. “Looking back seven to eight months ago, the platform has changed so much and growth has been incredible,” he says. “Universities and conventions are asking me to speak, everyone from MoneyShow to Microsoft inviting me to give a presentation at their conference.”
Trendrating’s momentum strategies have seen a success track record of 80%.
That performance has paid off. The firm recently signed a six-figure licensing agreement with one of the World’s largest Asset Managers, which has major offices in New York, Switzerland and London. The company says that it is closing in on 200 professional portfolio managers and investment advisors licensing the web-based momentum analytics platform. In addition, it is a regular contributor to sector and regional momentum reports on FactSet (FDS).
Finally, the company reports that a major exchange and index provider has partnered with them to create a series of global momentum indices based off of our momentum ratings. The two companies will then work with asset managers to potentially license the indices to create exchange-traded fund products.
Modern Trader readers know TipRanks as a regular contributor through its Sage column, which highlights the most accurate forecasts and market calls by professional and amateur traders alike. The company has vaulted across all forms of financial media, as financial journalists quickly verify whose track record to trust on stock picks and whose to dismiss.
The company continues to expand on its premium newsletter products DailyInsider, GoSector and GuruPortfolio. DailyInsider offers day traders a simple idea: Buy four stocks at open and sell them at close. The firm boasts a 78.9% return for 2015 on the service.
The probability platform of Eidosearch was critical to the development of Modern Trader’s February cover story, “The issue with forecasting,” which highlighted the ongoing futility of sell-side predictions in the markets today. Just a week after Eidosearch offered statistical analysis of market events for 2016; prominent bank analysts began to slash their 2016 outlooks.
What Eidosearch’s ongoing research efforts continue to prove is the fallibility of Wall Street predictions, and offer traders a true glimpse into the future by taking a far-reaching dive into past historical patterns.