Recap: News Quantified Founder Speaks at Wealth365 Conference


We hope many of you had the chance to catch our Founder and CEO Oliver Schmalholz speak at the Wealth 365 Conference today. For those who couldn’t make it, we’re going to recap the talk in today’s blog. If you have time the rest of the week, the conference is totally free and definitely worth your time.

Like any good trading approach, News Quantified wasn’t born overnight. We’re about data-driven investing, not magic formulas, and coming up with a sustainably profitable quantitative trading strategy can take years. Luckily, Oliver has done this heavy lifting for us.

He began approaching news-based investing data not to sell his insights, but simply to grow his own wealth. A serial entrepreneur, Oliver had found success with an early venture in an Austrian telecom. He found himself a more serious investor than ever before, but quickly realized the need for a more scientific, data-savvy approach to his stock trading. And there’s no better proving ground than U.S. markets, the most liquid in the world.

Oliver began experimenting with different quantitative approaches; none were wildly successfully right away. Over time, the value of a true news-based dataset became clear. The kind hedge funds used to make a killing each and every month. It would need to reflect a multitude of news sources (no news service gets there first every time), deep historical data (particularly vital for judging hold times and entry/exit points), and real-time stock data.

None of these resources are simple or cheap to acquire. And integrating takes a greater investment, still. But once Oliver earned $100k in 30 minutes (from a fully diversified set of plays no less) he knew he was finally onto something great. He continued refining his trading system, achieving triple-digit gains in multiple years. Finally, in 2012, he launched News Quantifed. The new company first focused on providing services to institutional investors and the investors’ relations groups of publicly traded firms (yes, our data is that professional-grade).

Starting last year, we rolled out a new version of the platform for smaller investors. News Quantified had proven itself as a profitable trading approach for years. But it offered relatively raw data to institutional clients. Our platform for retail investors offers these same insights, but tailored for individuals who don’t have an advanced background in statistics (or who do, but don’t want to spend hours performing calculations and updating spreadsheets every trading day). We stripped away the complexity to create a simple-to-use platform founded on fundamental insights into the way the stock market absorbs information.

What’s more, this strategy offers a rare risk management opportunity: the ability to craft a profitable strategy that’s risk neutral. How? The thousands of news events analyzed by our system aren’t uniformly positive—by investing in a strategic selection of long and short plays, you not only get in on news-driven profits, but protect yourself from broader market movements. Oliver’s system took a hit during the popping of the dotcom bubble In 1999, but after continued refinements performed remarkably well during the 2008 financial crisis. Investors still need to put their money somewhere in a crisis, and stocks being anchored by strongly positive news events are a likely destination.

If you missed Oliver’s presentation, we highly recommend one of our totally free virtual training seminars for a more in-depth look at our analytics platform. There’s no obligation or hard sell, just a tour of a platform that’s helping smaller investors across the country earn market-beating returns in as little as 30 minutes a day of trading. You can claim a spot in our next session using the button below:

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