Predictive Strength
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Predictive Strength
Reddit Mentions tracking the daily count posts, comments, and upvotes related to a digital asset on popular subreddits dedicated to cryptocurrency, providing insights into retail interest.
Reddit communities rapidly concentrate attention around market-moving events like exchange listings, protocol upgrades, or regulatory actions. During these periods, sentiment analysis of forum discussions (particularly using VADER's social media-optimized lexicon) captures shifts in crowd psychology before traditional metrics reflect them. For example, Dogecoin's 2021 rally preceeded with a 600% increase in Reddit mentions weeks prior to price spikes.
Reddit mentions data is tracking posts, comments, and upvotes across cryptocurrency subreddits, with counts normalized against historical averages to measure relative interest levels.
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To understand a predictive factors predictive power, we create a simple long/short strategy and simulate its past performance (with daily rebalancing):
The strategy is rebalanced daily, on a continuous basis. There are 0.5% transaction costs applied on each position adjustment.
Get started by validating the historical performance of the strategy with our transparent code snippets.
Copy and paste the code snippets below into your Python environment or download the files below.
Predictive Strength
Predictive Strength
Predictive Strength
Predictive Strength