Crowdsourced stock ratings – a new dataset

We are very excited to announce a new dataset we will be distributing: crowdsourced stock ratings from ClosingBell.

ClosingBell is an app-based collaborative stock trading platform which allows its users to connect their online brokerage accounts and share their trades and portfolios with one another. Users, who are retail traders, can also share their trade ideas, or ratings, with the ClosingBell community. The ClosingBell crowdsourced stock ratings dataset includes all such Buy and Sell ratings issued by the community’s members since 2014, currently over 40,000 ratings from 2,800 contributors.

We find that the ratings are predictive of stock prices over a one to twenty trading day period. The returns of portfolios built using the ratings exhibit dollar neutral returns of 28% with a Sharpe ratio of 2.0. These returns are robust to trading costs and are not explained by common risk factors. The ClosingBell data represents a unique and powerful source of crowdsourced alpha which can improve systematic sentiment strategies.

You can find our fact sheet here, and please contact us for more information or if you’d like to see historical data for backtesting.