60 points | by docdeltaneer1 天前
Compare this to what https://quartr.com/products/quartr-core is offering for $20/month.
I know how difficult it is to build a tool like this and you've done a decent job. Just doesn't make sense to me to price it like this.
Pricing for these services is not cheap, given it can be very helpful for professional traders.
(I’m no professional trader, and not even a trader. I just sometimes want to search for interesting things in transcripts, when I research a topic. I would pay for a decent service offering full text search for transcript search, to use it a few times per month (or perhaps even less frequently). Still not found a product that does it at a sensible price point for my use case - likely because my use case is not worth building a business on.)
1) SEC filings are largely useless. For earnings, funds typically look at the press release that companies put out. 10-Qs and Ks are sometimes released days or weeks after earnings are already out. You could potentially trade on filings that disclose insider share transactions but these are largely noise.
2) Setting all that aside, who exactly is buying this? Citadel/P72/all the other institutional investors have entire teams of data scientists. I’d be surprised if they didn’t have similar tools already with better functionality. Maybe this picks up steam with the retail crowd, but I doubt any average investor is going to have a trading system that can take advantage of this.
There’s just limited practicality and an even more limited customer base. Even if this were free, Im not sure I would have much use for it
I'm reminded of the headline "More than 16M Americans have lost jobs in 3 week, dow's best week since 1938"
https://www.reddit.com/media?url=https%3A%2F%2Fi.redd.it%2Fr...
That's likely a significant contributor behind the November election results in the US and across Western countries in general. People aren't dumb, they spot through politicians and media claiming "good economy numbers" while their own paychecks don't come close to keeping up with inflation.
The economy numbers may be at record highs, but way too much of the wealth ends up in the pockets of a very select few.
It's not that at all. Things like Russia spending all its money on the war effort boosts GDP, but doesn't help prices in the long term. The measures often don't measure costs, other than inflation.
It's the same way creating your own get rich quick scheme is the actual way to get rich quick, not following someone else's scheme.
Say for example a filing happens that a company will be impacted by trade sanctions. You could short the stock as a naive investor and maybe make a few bucks. Someone with sector knowledge will rebalance their portfolio knowing that customer demand for widgets will shift to sprockets which in turn require doodads. AI isn't there yet because it requires a lot of non-public knowledge to really make money off of.
We've already seen how just having basic sentiment and risk analysis has helped our users catch significant changes they would have missed - like subtle shifts in supply chain disclosures that preceded market moves. As we add features like more filing types, earnings call transcripts, and cross-company competitive insights, the system becomes more valuable for everyone.
The best trade isn't always the obvious one.
Most of the data is unstructured, or worse Edgar xml, adding yet another barrier.
I suspect this case is mostly about sentiment analysis and summary using LLM. The claims about reacting before the market seem egregious.
Institutional investors have had systems like this in place for decades. LLMs might improve parsing the data in some ways, but this is (and was) completely doable before the LLM era, meaning there’s probably not a huge amount of secret sauce here worth protecting.
If anything, a project like this simply improves the information asymmetry between retail and institutional investors.
Btw, Coca-Cola bought Minute Maid Lemonaide in 1960. :)
With that said, I agree that hedge funds probably already have their own internal versions of this.
Yes!
> LLMs didn't really break any new ground here
I don't think this is true. LLMs are a gigantic leap forward from any traditional sentiment analysis I've seen. Pre-2013, bag-of-words and TF-IDF were still state of the art. Call me out if you think I'm wrong, but hand-waving away the transformative power of LLMs here because we had some sentiment analysis approaches before seems unfair.
But to survive long term you have to _not fail_ in a very repeatable and consistent manner. Long term success is risk and downside management.
Maybe hedge funds are completely out of step with the rest of the finance world, but much of finance has been using AI for a long time. AI is old news at this point.
I'm especially intrigued by the use of AI to analyze the Risk Factors section. I've been working on a tool to SaaS increase sales by combing through 10-K Risk Factors and seeing which companies, industries, markets make the best sales targets. It becomes a matching algorithm between the value levers of the SaaS solution and the needs expressed in the Risk Factors section.
Do you have any plans to incorporate economic data from the monthly releases by BLS, BEA, Census, Federal Reserve, etc.?
I personally rely on it for my own decisions, but like any tool, it's most effective when used as part of a broader analysis process. The system is great at rapidly surfacing the most significant changes in these massive documents and contextualizing them against historical patterns. That's incredibly valuable for making timely decisions, especially since the market often takes days or weeks to fully price in the implications of complex filing changes.
That said, the analysis code has built in multiple validation layers and error handling because filings are just one piece of the market puzzle. The code is designed to be conservative - it'll fail closed rather than make questionable assertions. But for what it's designed to do - deep analysis of filing changes and their implications - it's proven to be a reliable tool for actual decision-making.
This doesn't say anything. Exactly how much have you tested and what were the results?
probably worth capturing a few successful situations and documenting that in some marketing way.. also probably worth capturing a few Very Big Fails and making a ticket out of that internally, to improve the system. Seize the day!
https://www.youtube.com/watch?v=ag14Ao_xO4c
EDIT: To those suggesting extended hours trading, check out what the order book looks like and who the market maker is.
https://www.finra.org/investors/insights/extended-hours-trad...
Barriers are falling, fees and such. APIs popping up and interest in markets growing. I'd be bullish on retail trading and its healthy future.
