The social trading and investing platform, eToro has collaborated with analytics and finance management firm The Tie to<a href="https://www.etoro.com/en-us/blog/from-etoro/trade-based-on-crypto-twitter-sentiment/"> launch</a> a social media-based trading strategy for its digital currency traders.

Moreover, eToro users trading based on this strategy, will open crypto trades based on positive sentiments on social media platform Twitter. The new strategy is being dubbed TheTIE-LongOnly CopyPortfolio.
<h2>Positive Trading Signals Only</h2>
In addition, the strategy analyzes cryptocurrency-related conversations. This happens by processing 850 million tweets daily using machine learning and natural language processing technology. According to The Tie, the technology quantifies the positive and negative tone of conversations on Twitter.  Afterward, the platform leverages this data and provides trades based "on positive sentiment, algorithmically rebalancing once per month."

Moreover, the tools scan individual tweets related to a certain cryptocurrency and use a filter to assess the relevance of the information; removing spams and bots. Sentiment is measured on a per crypto basis to guarantee it reflects on positive and negative conversations on Twitter for a particular <a href="https://www.cryptoknowmics.com/crypto/what-does-your-government-think-about-cryptocurrencies-in-2019/">cryptocurrency</a>.

In fact, the TIE’s Long-Only CopyPortfolio is bullish-oriented strategy and only considers long positions with a minimum of three holdings. Co-founder and CEO of The Tie, Joshua Frank commented:

<strong> <em>“All you need to do is click one button and you can copy these sophisticated trading strategies trusted by some of the world's leading hedge funds and institutional investors.”</em></strong>
<h2>Crypto Value-Driven By “The wisdom of the Crowd”</h2>
Additionally, during the launch the portfolio included five crypto assets:  47.24% stake in DASH; 23.92% EOS; 21.86% XRP; 5.01% MIOTA; and 1.97% ETC. The portfolio re-balances every month. According to Frank, there’s no better intelligence source for crypto market movements than Twitter – “kind of the epicenter of the crypto universe.” “Crypto remains an asset class driven by the wisdom of the crowd.”

Furthermore, he adds “There’s nothing fundamentally driving the value of crypto,” said Frank. “There’s no earnings, there’s no dividends, there’s no revenue.” Cryptocurrency trades almost entirely rely on public outlook. Twitter generates public outlook.
<h2>Bottom Line</h2>
In conclusion, The Tie actually launched this strategy back in October 2017. Up to date, the algorithm has generated a 281% return after fees; compared to a 41% return generated by Bitcoin alone, according to an <a href="https://www.etoro.com/en-us/blog/from-etoro/trade-based-on-crypto-twitter-sentiment/">eToro post. </a>

eToro Unveils Crypto Portfolio Weighted on Twitter Sentiments

The social trading and investing platform, eToro has collaborated with analytics and finance management firm The Tie to a social media-based trading... %

My first love is music – then goes writing. I don’t write fiction, I analyze bulls and bears in markets. I call it my jungle, the digital jungle of crypto and chains.

eToro Unveils Crypto Portfolio Weighted on Twitter Sentiments

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