Prattle Data Validated by Nasdaq as Alpha-Generating Trade Signal, Featured on New Analytics Hub

  • Tuesday, May 16, 2017

Prattle is excited to provide the “Macro Events” portion of Nasdaq’s newly launched Analytics Hub. Nasdaq is yet another established voice to back Prattle data as a viable, alpha-generating trade signal. Our central bank sentiment data is one of four alternative data sources included on the platform, all of which “must pass a rigorous Nasdaq vetting process, including survivor-bias-free back-testing—confirming the validity and effectiveness of the data.”

Figure 1 (shown below) illustrates the results of a Nasdaq backtest of Prattle’s data. The strategy informed by Prattle’s analytics significantly outperformed the benchmark (500 Largest Stocks), with Prattle’s strategy yielding 719% over the test period against the benchmark’s 169%.

Figure 1: Nasdaq Backtest of Prattle’s Data vs 500 Large-Cap Stocks

Alternative data backtest investment strategy
For a full results breakdown, click “download” on Prattle’s page on Nasdaq’s site.

Nasdaq’s platform facilitates the use of “alternative data” in investment strategies as financial professionals look for unique trading signals with proven alpha generation capabilities:

“Advances in technology and automation are increasing the demand for alternative data sets to help asset and hedge fund managers, algorithmic traders and active managers make informed investment decisions.”

News of the Analytics Hub launch was included in Nasdaq’s April earnings call, contributing to its upbeat tone: Prattle scored* the call as an above average 0.75.

The San Francisco Fed, Drobny Global, and now Nasdaq have publicly integrated Prattle into their research or product. For the opportunity to sign up for Prattle’s free, 30-day data trial, click here.  

The Prattle Team

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*Prattle sentiment scores for corporate earnings calls are normalized around zero and range between -3 and 3 for the vast majority of results. Negative numbers indicate a negative outlook, and positive numbers indicate a positive outlook.