Trading Case Study: Web Scraping’s Role in Automating the Trading Process

  • 14/03/2023

You cannot ignore the numerous benefits that web scraping for trading offers while making financial decisions. This method enables you to access several alternative data sources, retrieve historical data, and watch real-time stock movement.

Use Case for Trading Automation

We had the privilege of rescuing a customer from a terrible situation. It concerned a private investor who was having trouble. He didn’t seem to be making a move in the stock market, and his stock portfolio was starting to deteriorate.

The client had tried a variety of tactics to make things better, but the losses persisted, and the mood was starting to deteriorate. The investment industry is highly dynamic and demanding and necessitates a substantial amount of data to function wisely. In actuality, the client kept hunting for fresh data but kept coming up empty-handed.

He also had to contend with the inherent danger and ambiguity that any investor faces, especially when betting on an SME or exotic financial instruments. In this climate, having the right information, industry knowledge, and data processing skills is crucial, and web scraping can be an important tool in this regard.

Preparing the trading data collection strategy

Therefore, the first step was to build a database that would make customer search easier. We decided we needed a number of crucial pieces of information to carry it out, and we have your opinion on the subject. We considered a number of factors, including reliable economic sources, the most significant dangers to consider, recent portfolio moves of the companies, and significant fluctuations.

Since the decisions made using the data can result in significant losses, it is crucial that the data used in an investment plan be well-structured and secure. Therefore, having a technology partner that can also ensure our privacy and legality is crucial for the extraction of the same ones.

Since all investments are based on a number of crucial pieces of information, this method can be used with every sort of investment. The approach’s success will depend on the investor’s ability to select the relevant data and ensure the quality of the data.

The future of a company can be predicted using data from seemingly unrelated sources, such as sentiment analysis on social media, website traffic, pricing fluctuations for its goods and services, and job postings on its own websites or job boards.

Once the data has been located, it may be processed and extracted automatically.

Finally, our client could return because he made good use of the analysis we provided for him, enabling him to perform some more precise and secure activities. At the very least, we like to think that we played a big role in it!

Any organization can use this method because they all rely on a similar set of key facts. It only requires that you identify them and conduct a screening. Then, we can design a particular database for practically any industry. You simply need to sort the data and create as precise a market analysis as you can in order to make the best choices.

How do scraping-based strategies benefits?

The restoration of lost competitiveness is the first. There is a wealth of data that enables more effective operation and market adaptation. This task can be automated to improve portfolio management effectiveness and investment plan analysis.

The profits are the second important benefit. With web scraping for trading, you may immediately identify market movements and take remedial action at the same time. The outcome? Return to the profit route, with gains on our client’s portfolio of about 4% monthly and precise and helpful stock market research.

Frequently asked questions:

What is the role of web scraping?

Web scraping is a technique for quickly and effectively automating data extraction. Web scraping enables you to download any website’s data, regardless of its size, to your computer. Additionally, webpages could include information that you can’t copy and paste.

What is web scraping automation?

The automated process of online scraping, also known as web data extraction or data scraping, extracts data from websites and exports it in a structured format. If the public website you want to collect data from lacks an API or merely offers restricted access to web data, web scraping can be helpful.

Can we automate web scraping?

Automating the web scraping setup is a pretty easy procedure after the machine has been configured to emulate a human user where necessary. The URLs to be scraped are stacked in a queue system, and the crawler setup will visit each of their pages one at a time to collect the data from them.

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