Keyword-Based Trading Automation: Building Rules That React to Specific Words

At the core of social signal trading is a simple concept: certain words, when posted by certain accounts, predict price movements. Keyword-based automation turns this insight into systematic trading rules. This guide shows you how to build effective keyword-based trading systems.

How Keyword-Based Trading Works

The Basic Concept

Account posts → Contains keyword → Triggers action → Trade executes

Example:

@binance tweets: "Binance will list $TOKEN tomorrow"
                        ↓
Keyword detected: "will list"
                        ↓
Action triggered: Buy $TOKEN
                        ↓
Trade executes: Market buy, 1% position

Why Keywords Work

Predictable Language: - Exchanges use consistent announcement formats - News follows standard patterns - Influencers have recognizable styles

Measurable Impact: - Certain words correlate with price moves - Historical data shows patterns - Impact is quantifiable

Building Your Keyword System

Step 1: Identify High-Value Keywords

Start by categorizing keywords by their typical impact:

Step 2: Define Keyword Combinations

Single keywords can be ambiguous. Combinations increase accuracy:

Simple Keywords (Higher False Positives):

"listing" 
Problem: Could be "I'm listing my complaints about..."

Compound Keywords (More Accurate):

"will list" + token symbol
Much more likely to be actual listing announcement

Phrase Matching:

"Binance will list"
"is now available on"
"trading is live"
Very high accuracy for listing announcements

Step 3: Add Context Filters

Reduce false positives with additional conditions:

Account Filter:

Keyword: "listing"
Account: @binance (official only)
Result: High confidence signal

vs.

Keyword: "listing"
Account: @randomuser
Result: Low confidence, likely not actionable

Sentiment Filter:

Keyword: "Bitcoin"
Sentiment: Positive (AI-detected)
Action: Bullish bias

Keyword: "Bitcoin"
Sentiment: Negative (AI-detected)
Action: Bearish bias or no action

Exclusion Keywords:

Include: "listing"
Exclude: "not", "won't", "fake", "rumor", "hope"
Result: Filters out negations and speculation

Keyword Categories Deep Dive

Exchange Listing Keywords

Primary Keywords:

"will list"
"listing"
"lists"
"is listed"
"now available"
"trading opens"
"trading live"
"adds support"

High-Confidence Phrases:

"[Exchange] will list [TOKEN]"
"[TOKEN] listing on [Exchange]"
"Trading for [TOKEN] is now live"
"[TOKEN] is now available on [Exchange]"

Account Sources: - @binance, @coinbase, @kaborakenexchange, @kaboraucoin, @okaborax, @bybit_official

Rule Example:

Accounts: [Major exchanges]
Keywords: "will list", "listing", "now available"
Exclude: "not", "won't", "considering"
Action: Buy mentioned token
Size: 1.5%
Stop: 12%
Target: 30%

Partnership Keywords

Primary Keywords:

"partnership"
"partner"
"partnered"
"teamed up"
"collaboration"
"working with"
"integration"
"strategic alliance"

Quality Indicators (Include):

+ "official"
+ "announce"
+ "excited"
+ Major company names (Google, Microsoft, Visa, etc.)

Skepticism Indicators (Caution):

- "exploring"
- "MOU"
- "discussions"
- "potential"
- Unknown company names

Rule Example:

Accounts: [Project official accounts]
Keywords: "partnership", "partnered", "teamed up"
Boost: Contains major company name
Reduce: Contains "exploring", "MOU"
Action: Buy (full size if boost, half if standard)

Security/Hack Keywords

Critical Keywords (Immediate Action):

"hacked"
"hack"
"exploit"
"exploited"
"breach"
"compromised"
"drained"
"stolen"
"vulnerability"
"attack"

High Alert Phrases:

"funds have been"
"security incident"
"investigating"
"unusual activity"
"paused withdrawals"

Rule Example:

Accounts: [All monitored]
Keywords: "hack", "exploit", "breach", "drained"
Action: Sell any position in mentioned project
Alert: Immediate notification
Priority: Highest

Influencer Trading Keywords

Bullish Keywords:

"buying"
"bought"
"long"
"longing"
"accumulating"
"loading"
"bullish"
"moon"
"undervalued"

Bearish Keywords:

"selling"
"sold"
"short"
"shorting"
"dumping"
"bearish"
"overvalued"
"exit"

Confidence Boosters:

"high conviction"
"size"
"big position"
"all in"
"maximum"

Confidence Reducers:

"might"
"maybe"
"considering"
"thinking about"
"small"
"tiny"

Advanced Keyword Techniques

Keyword Weighting

Assign scores to different keywords:

Scoring System:
"will list" from @binance = 100 points
"partnership" from official account = 70 points
"bullish" from influencer = 40 points
"might list" from anyone = 10 points

Threshold for action: 60 points

Boolean Logic

Combine keywords with AND, OR, NOT:

Rule: Exchange Listing
Condition: 
  ("will list" OR "listing" OR "lists")
  AND (token_symbol detected)
  AND NOT ("not" OR "won't" OR "rumor")
  AND (account IN [official_exchanges])

Regular Expressions

For advanced pattern matching:

Pattern: /will list \$[A-Z]{2,10}/i
Matches: "will list $BTC", "will list $DOGE"
Doesn't match: "will list my house"

Pattern: /\+[0-9]+%/
Matches: "+50%", "+100%"
Use: Detecting price target mentions

Time-Based Modifiers

Keywords may have different impacts at different times:

Keyword: "listing"
Time: Market hours (higher volume)
Impact modifier: 1.0x

Keyword: "listing"
Time: Weekend (lower volume)
Impact modifier: 0.7x (expect less movement)

Building Rules in TradeFollow

Basic Keyword Rule

Rule Name: Binance Listing Alert
Source: @binance
Keywords: "will list"
Action: Buy
Asset: Auto-detect from tweet
Size: 1% of portfolio
Stop Loss: 10%
Take Profit: 25%
Time Limit: 24 hours

Multi-Keyword Rule

Rule Name: Major Partnership
Sources: [Project accounts watchlist]
Keywords (ANY): "partnership", "partnered", "teamed up"
Keywords (MUST NOT): "exploring", "potential", "MOU"
Boost Keywords: "Google", "Microsoft", "Visa", "Mastercard"
Action: Buy
Size: 1% (2% if boost keyword present)
Stop Loss: 15%
Take Profit: 30%

Defensive Rule

Rule Name: Security Alert Exit
Sources: [All monitored]
Keywords (ANY): "hack", "exploit", "breach", "compromised"
Action: Sell existing position
Scope: Any token mentioned in alert
Priority: Immediate
Alert: Push notification + email

Measuring Keyword Performance

Track Each Keyword

Keyword: "will list"
Triggers: 23 (last 30 days)
True Positives: 21
False Positives: 2
Accuracy: 91%
Avg Return: +18%

Performance Table Example

Optimization Actions

Based on performance data:

High Accuracy + Good Returns: Keep as is High Accuracy + Low Returns: Adjust position sizing or exits Low Accuracy + Good Returns: Add filters to reduce false positives Low Accuracy + Low Returns: Remove or completely redesign

Common Keyword Mistakes

Mistake 1: Too Broad

Bad: Keyword = "Bitcoin"
Problem: Triggers on everything, mostly noise
Fix: Add context requirements or specific phrases

Mistake 2: Too Narrow

Bad: Keyword = "Binance will officially list on February 8"
Problem: Never triggers (too specific)
Fix: Use core phrase "will list" with account filter

Mistake 3: Ignoring Negations

Bad: Keyword = "listing"
Triggers on: "There is NO listing planned"
Fix: Exclude "no", "not", "won't", "fake"

Mistake 4: Not Testing

Bad: Create rule → Turn on → Hope it works
Fix: Paper trade → Analyze results → Refine → Go live

Mistake 5: Set and Forget

Bad: Created rule 6 months ago, never reviewed
Problem: Language patterns change, new phrases emerge
Fix: Monthly review of keyword performance

Keyword Ideas by Strategy

The News Trader

Focus: Breaking news and announcements
Keywords: "breaking", "just in", "announced", "confirmed"
Sources: News accounts, official accounts
Speed: Critical

The Degen Trader

Focus: High-risk, high-reward signals
Keywords: "gem", "100x", "moonshot", "alpha"
Sources: Influencer accounts
Caution: High false positive rate, small sizes only

The Defensive Trader

Focus: Risk management and protection
Keywords: "hack", "scam", "rug", "warning", "careful"
Action: Exit or avoid mentioned assets
Priority: Capital preservation

The Momentum Trader

Focus: Catching trends as they develop
Keywords: "breakout", "ATH", "pumping", "trending"
Sources: Technical analysts, trend accounts
Timing: Enter on confirmation, not prediction

Conclusion

Keyword-based trading automation transforms text into trades. Success requires:

1. Choosing the right keywords - High-impact, specific, testable
2. Adding proper filters - Account sources, exclusions, combinations
3. Continuous measurement - Track accuracy and returns per keyword
4. Regular optimization - Remove underperformers, refine winners
5. Appropriate sizing - Match confidence to position size

Start with proven keywords (exchange listings, hack alerts), expand to medium-confidence keywords (partnerships, influencer calls), and be very cautious with low-confidence keywords (general sentiment).

TradeFollow's keyword detection system handles the technical complexity, letting you focus on strategy—which keywords to track, from which accounts, with what actions.

The best keyword traders treat their rules as living systems: constantly measuring, learning, and improving based on real results.