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Shorting Stocks on Trump Tweets
[Photo: claytrader.com]
A digital marketing company built software that automatically analyzes and trades off of the president's Twitter feed.
President Donald Trump’s tweets have caused headaches for everyone from Mexico’s currency traders to the world’s most valuable companies. Now there’s a robot out to profit from the pain.
Meet the Trump and Dump bot, a computer program that automatically shorts stocks based on Trump's tweets. Created by the advertising agency T3, the software extracts companies named in the president's tweets and analyzes their sentiment. If the tweet is deemed negative, the bot will short the stock within seconds and then send an alert to T3.
“What do you do when Trump is tweeting about these companies and their stocks are going down?” said Ben Gaddis, president of T3. “One of the guys in the New York office over Slack said, ‘What if we do this?’”
Within 5 days of the first conversation, the bot was up and running, Gaddis said. Among the opportunities for the bot was a tweet that Trump fired on January 5 that criticized Toyota’s plan to build a new plant in Baja, Mexico. Toyota shares fell as much as 3.1% following Trump’s criticism.
Gaddis said T3 will donate any profits from the bot to the American Society for the Prevention of Cruelty to Animals. While he declined to disclose how much money the bot has made thus far, he said the company made its first donation to the foundation this month after the bot started trading on Jan. 2.