RNS Analysis Software - Any thoughts?

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5ushi

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Hello all,

Just want to do a quick straw poll and get your thoughts on something. A friend and I developed a simple tool for personal trading use. It grabs an RNS alert on release and allows you to look for key phrases and, when they appear together, the system alerts you.

This is so that you can create a trading edge based upon your own analysis related to market news. So, for example, if your analysis was that a market generally goes up by 20% when the phrases "pleased to announce" and "massive big profits" appeared in the same RNS alert then you could build a search profile based on these and be alerted instantaneously when this happens.

From what I can tell, all of the other RNS alerts systems out there just notify you when a particular company that you are interested in releases an alert and that's it.

Our system is irrespective of the company and is based on the content and your own analysis of what constitutes "good" or "bad" news.

We've found it to be quite useful and are considering putting a front end on it and making it available as a commercial product. Before we spend any real time and money on it I just wanted to gauge a reaction to the concept.

1) Would traders be attracted enough by such a system to pay £x/per month on using it?

2) If so - what is everyone's gut feel as to what "x" should be - i.e. what's it worth?

3) Are we missing something here and actually there exists some well known RNS analysis system that is already out there?

All thoughts are welcome. Super embryonic hobby project just now. Really just want to know if it's got legs!

Cheers everyone.
 
Might be worth bearing in mind the LSE RNS allows search by
RNS headline type type - Q1 earnings, director change,director shareholding etc.
Regulatory - London Stock Exchange
See the headline type dropdown menu - quite a lot...
Can also filter by sector, index, free text search and ticker as well as headline type.
To be fair though, most people don't know about this.

For example, http://www.investegate.co.uk/?utype=PI just re-hash the same info
with much less in the way of filtration and search tools.
So I wouldn't rule it out, but there is certainly competition.

Not exactly what you are doing granted.
Either way, there may be a market for this, but I would guess you would
have more demand here:
Community | Interactive Investor
Share Chat on London South East. Recent Share Chat on all major UK stocks.
 
Last edited:
Liquid validity said:
Might be worth bearing in mind the LSE RNS allows search by
RNS headline type type - Q1 earnings, director change,director shareholding etc.
Regulatory - London Stock Exchange
See the headline type dropdown menu - quite a lot...
Can also filter by sector, index, free text search and ticker as well as headline type.

Not exactly what you are doing granted.
Either way, there may be a market for this, but I would guess you would
have more demand here:
Community | Interactive Investor
Share Chat on London South East. Recent Share Chat on all major UK stocks.
Click to expand...

Yeah - it's actually the limitations of that search that was what prompted us to do this. It also only allows one search term as opposed to a combination. But the main thing is that you are doing a passive search rather than having the alert pushed to you when a particular RNS meets your criteria.
 
5ushi said:
Yeah - it's actually the limitations of that search that was what prompted us to do this. It also only allows one search term as opposed to a combination. But the main thing is that you are doing a passive search rather than having the alert pushed to you when a particular RNS meets your criteria.
Click to expand...

Sound OK, get the search engine coded up, build the website, tout for ads with
the usual suspects and promote it in areas of demand.
Its true what you say, even the LSE search is lacking in some areas.

Only thing I would say is your biggest problem would be the LSE or investigate
just copying you, and they are already known sources.
Thats the risk with anything you can't patent though.

I'd say your best chance would be to move fast and get it known quickly.
Otherwise you are vulnerable to copy.
Even then there is no guarantee.
Good idea, good luck :)

BTW - another place to promote it would be the ADVFN boards.
 
Last edited:
5ushi said:
1) Would traders be attracted enough by such a system to pay £x/per month on using it?

2) If so - what is everyone's gut feel as to what "x" should be - i.e. what's it worth?

3) Are we missing something here and actually there exists some well known RNS analysis system that is already out there?
Click to expand...

Missed these questions.
1. Honestly - no, income has to be ad revenue / affiliate click through deals (see ads here on T2W for example).
2. Zero, as above, I doubt individuals will pay with reasonable free sources available.
3. Already covered - in existence, not as refined.

What would be really interesting would be this integrated into a stock scanner / screener.
Ultimately, it boils down to supply and demand, if the news is expected, there is unlikely
to be a supply / demand imbalance.

Thats where an integrated scanner would come in, to track those
stocks actually moving due to a release.
Then again, those that use scanners often don't care about the reason for the
move, they just trade the strongest moves regardless.
Could still potentially give a slightly earlier warning though.

If you code it to integrate with the Esignal scanner for instance as a plugin or whatever,
you could probably charge then.
As a stand alone package with built in scanner - definitely charge for it.
Personally, if you go down that road, I would say the platform plugin route would be best.
Plugin for Esignal, Ninjatrader, Tradestation etc.
Thats as well as website generating ad revenue, not instead of.

BTW - I charge £150 per hour as a consultancy fee...joking :)
Hope you pull it off, just don't sit on your hands until someone else does it, do gauge demand first though.
Just don't sink everything you've got into it, competition risk doesn't warrant that in my view.
Ultimately thats your choice.
 
Last edited:
5ushi said:
Hello all,

Just want to do a quick straw poll and get your thoughts on something. A friend and I developed a simple tool for personal trading use. It grabs an RNS alert on release and allows you to look for key phrases and, when they appear together, the system alerts you.

This is so that you can create a trading edge based upon your own analysis related to market news. So, for example, if your analysis was that a market generally goes up by 20% when the phrases "pleased to announce" and "massive big profits" appeared in the same RNS alert then you could build a search profile based on these and be alerted instantaneously when this happens.

From what I can tell, all of the other RNS alerts systems out there just notify you when a particular company that you are interested in releases an alert and that's it.

Our system is irrespective of the company and is based on the content and your own analysis of what constitutes "good" or "bad" news.

We've found it to be quite useful and are considering putting a front end on it and making it available as a commercial product. Before we spend any real time and money on it I just wanted to gauge a reaction to the concept.

1) Would traders be attracted enough by such a system to pay £x/per month on using it?

2) If so - what is everyone's gut feel as to what "x" should be - i.e. what's it worth?

3) Are we missing something here and actually there exists some well known RNS analysis system that is already out there?

All thoughts are welcome. Super embryonic hobby project just now. Really just want to know if it's got legs!

Cheers everyone.
Click to expand...


I'm not familiar with RNS, is it an alert service from LSE? If it is then you may be liable for a hefty fee for redistributing their data. See the following link.

RNS ALERT - shutting down - MoneySavingExpert.com Forums
 
pboyles said:
I'm not familiar with RNS, is it an alert service from LSE? If it is then you may be liable for a hefty fee for redistributing their data. See the following link.

RNS ALERT - shutting down - MoneySavingExpert.com Forums
Click to expand...

Completely true.
Thats what investigate do as well.
Really it needs strong demand and volume to generate ad revenue.

I used the RNS alerts sms service as few years ago - about £1 per sms.
Look how the customer charging model worked out...
Thats why this needs to be free to end user (ad revenue stream) or a paid platform scanner plugin.
If you go that far with a platform plugin, may as well add U.S. stocks as well.
For revenue sources, simply click all the links on the sites I've mentioned and bookmark and approach when ready.
If you do charge for sms (email will be free anyway), use bulk sms providers, charge at cost to keep
end user fees low and have main income as ads.
You could maybe skim a small % of the sms fees though, but if too high, it will put people off.

BTW RNS = regulatory news service, news release system for all L.S.E. quoted stocks inc. AIM.
 
Last edited:
5ushi, here are the license terms and pricing for distribution of
LSE data.

In other words the cost of the raw RNS feed before you put it
through your search and filtration software.

Page 4 - License costs:
http://www.londonstockexchange.com/...ngandpolicyguidelineseffective1stjuly2012.pdf

Page 5 - License structure & pricing:
http://www.londonstockexchange.com/.../sedol-masterfile-pricing-policy-nov-2010.pdf

Other LSE info on policies, contractual documentation:
Pricing and policies - London Stock Exchange
 
Liquid validity said:
5ushi, here are the license terms and pricing for distribution of
LSE data.

In other words the cost of the raw RNS feed before you put it
through your search and filtration software.

Page 4 - License costs:
http://www.londonstockexchange.com/...ngandpolicyguidelineseffective1stjuly2012.pdf

Page 5 - License structure & pricing:
http://www.londonstockexchange.com/.../sedol-masterfile-pricing-policy-nov-2010.pdf

Other LSE info on policies, contractual documentation:
Pricing and policies - London Stock Exchange
Click to expand...

Hmm. This is more of a minefield than I had anticipated!

We had basically just web-scraped the info before (which wasn't easy - now I know why!), but there's no way we could commercialise that without paying them.

And TBH - advertising revenue in such a niche area is going to be tiny. I still think if we have the means for people to build a trading strategy from RNS analysis then that has significant value. From what's been said here, the "analysis" side clearly needs to be way more meaty than what we have currently though.:cheers:

What's really interesting is that the pricing page shows that you can get historical info for free. That might be really useful if you could crunch a huge amount of historical RNS data with a huge amount of corresponding market data to try and spot correlation with certain key phrases. Hmmm....
 
5ushi said:
there's no way we could commercialise that without paying them.
And TBH - advertising revenue in such a niche area is going to be tiny.
Click to expand...

There are ways around that if you look for them.
Investigate for instance, only do email RNS alerts for free.
Only visible source of income is ads.
You may be underestimating the potential...

As for start up costs, the way around that would be to bring someone else in.
Ideally someone else who already has a strong internet presence.
You never know someone may read this and approach you,
so keep an eye on the thread and PM's in case that happens.
 
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