Tag Archives: Hedge

More hedging and optimal hedge video playback

More hedging and optimal hedge video playback

This is a chosen unit from my Futures/Options to highlight some of the detailed discussion that comes out of these for my Quant Elite  members. These can be highly valued based up on the people that attend.

The video below is nearly 3 hours long! There were so many topics covered

Here some of the links

http://www.investopedia.com/articles/bonds/07/price_yield.asp

http://www.iqfeed.net/index.cfm?displayaction=support&section=main

https://swiftlang.ng.bluemix.net/#/repl

http://www.tiobe.com/tiobe-index/

https://www.freebsd.org/about.html

http://www.macrumors.com/2016/11/09/new-macbook-pro-has-outsold-all-competitors/

More notes:

i’m using http://etfdb.com

use database

 

menu choice

 

Windows 10 isn’t bad. I’m really excited to get my hands on the latest Windows Internals, new kernel features.

 

“Windows Internals” is a book that gets republished every few years. Documents the inner workings of the operating system.

 

https://technet.microsoft.com/en-us/sysinternals/bb963901.aspx

 

It’s sister book is Windows Via C/C++

 

Maybe, but probably not. Not faster than a couple hundred MS.

 

the best boomberg ETF reporter is Eric Balchuas – he is writinf ETF book , about to be published

 

http://www.bloomberg.com/news/audio/2016-11-12/balchunas-on-post-election-rally-in-financial-etfs-audio

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Cost of #Equity #hedge at One year low

Cost of at One year low

[igp-video src=”https://quantlabs.net/blog/wp-content/uploads/2016/08/Cost-of-Equity-hedge-at-One-year-low.mp4″ poster=”https://quantlabs.net/blog/wp-content/uploads/2016/08/Cost-of-Equity-hedge-at-One-year-low.jpg” size=”large”]
Cost of #Equity #hedge at One year low

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Oil Driller hedge 3 ways

Oil Driller hedge 3 ways

As fully eplained in this Bloomberg article

Workers connect drill bits and drill collars, used to extract natural petroleum, on Endeavor Energy Resources LP’s Big Dog Drilling Rig 22 in the Permian basin outside of Midland, Texas, U.S., on Friday, Dec. 12, 2014.

Oil at $30 a barrel is blowing a hole in the insurance that U.S. shale drillers bought to protect themselves against a crash.

To read the entire article, go to http://bloom.bg/20kKsmP

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Delta Airlines 300m hedge trading derivative machine

Delta Airlines 300m hedge derivative trading machine

I got this interesting article from a Skype contact regarding how Delta Airlines is more of a hedge trading machine versus an airline. Guess what I’ll be working on next?

 

Go here to see the article

Simulink code generation with HiRedis NOSQL Redis too complicated

 

Simulink code generation with embedded Redis for the HiRedis data binding can get quite complicated. I made a whole video of it here. I may have somebody contribute a solution in coming weeks for this.

 

And here is the link for that video

 

Finally I can say I have an improved Simulink trading model for the  Karen Super Trader strategy. It is much simpler and streamlined as well. I have included a pretty awesome set of code generated C source files with a great HTML report. This is available for all my Quant Elite members right now.

 

I made an entire video demonstration of this

 

Get access to that right now

 

If you haven’t seen my Membership benefits you should check it out here

Thanks for reading

Bryan

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Delta Airlines 300m hedge derivative trading machine

Delta Airlines 300m hedge derivative trading machine

Suprised? Don’t be. I will be building something like this in an automated way as my next major step

Thanks to a Skype contact

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Delta Isn’t an Airline, It’s a Complex Derivatives Trading Firm.

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#hedge are vital source of cash award for satisfaction for #Oil drillers

are vital source of cash award for satisfaction for drillers

[igp-video src=”” poster=”https://quantlabs.net/blog/wp-content/uploads/2015/08/hedge-are-vital-source-of-cash-award-for-satisfaction-for-Oil-drillers.jpg” size=”large”]
#hedge are vital source of cash award for satisfaction for #Oil drillers

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NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

Smaller #Oil firms that #Hedge are doing better than #Exxon

Smaller firms that are doing better than

[igp-video src=”” poster=”https://quantlabs.net/blog/wp-content/uploads/2015/08/Smaller-Oil-firms-that-Hedge-are-doing-better-than-Exxon.jpg” size=”large”]
Smaller #Oil firms that #Hedge are doing better than #Exxon

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NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!

FX ETF hedge against currency wars

FX ETF hedge against currency wars

Watch this

http://bloom.bg/171LE9U
How Investors Use ETFs to Fight the Currency Wars
Feb. 13 -- Bloomberg ETF Analyst Eric Balchunas and Scarlet Fu examine investing in the currency wars through ETFs. They speak in "On The Markets" 
on "In The Loop.”

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Can you really hedge bitcoin for a trading strategy for profit according to Bloomberg markets magazine?

Can you really hedge bitcoin for a trading strategy for profit according to Bloomberg markets magazine?

If so read this in the Nov 2014 issue

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In Excel: Having discipline for long short with beta across the entire trade to hedge out risk

In Excel: Having discipline for long short with beta across the entire trade to hedge out risk

Part of https://quantlabs.net/blog/2014/09/having-discipline-in-your-risk-management-for-long-term-trading-for-profit/

You can have single asset position limits based on a percent of the total portfolio i.e. 10% of total. Your single positional notional value can go up by doing nothing.

You can add a portfolio stop loss. If you put a 10% stop loss on each S&P 500 position, you could put 5-10% on the portfolio stop loss. These could cost your portfolio at 1% if apply the position stop loss.

In Excel

A theme could be defined as a typical long short view.

A cross constituent sector trade could be a high risk compared to other trades. The long could be defensive as in oil (cyclical)which means it could be more sensitive to the business cycle of the economy. If you are bullish, you could do a cyclical long vs a defensive short. It would be opposite if you saw the economy being bearish. If you use beta of each, so calculate the ratio. For every unit of move in the market, the long may move a certain percentage based on the beta ratio. In terms of deploying capital, for every dollar in the long, you short the beta ratio times to hedge out market risk. The short will move a lot less than the long as compared to the betas.

If you apply a self imposed spread trade restriction, so to deploy x dollars on the long, you will need to commit y dollars on the short according to the beta spread radio. This could break your limit. You may need to reduce the amount on the long to fall within your position trading exposure restriction. If the market drop n %, the long and short should drop the amount based on our betas. You could apply more capital to reduce the risk you would deploy more money on the short since the long will move more according to the long beta. It may prevent you from losing money the trade if more is applied to the short. It will be assumed the long will always outperform the short over the long term of the trade. You can hedge out the risk based on the kind of exposure you want.

If you beta ratio goes up to a high level (i.e. 3), your gross position exposure can go beyond the limit you allow. You would need to asjust your short and long position. You then question if the actual trade is worth hanging onto. For every long dollar, you would need to allocate 3x on the short side which makes the trade extremely capital hungry. Always find trades that have a lower beta capital ratio meaning it should be less than 2. There should always be a more efficient long short trade.

You could alsouse a theme of multi spread trades (2 long and 2 shorts) to diversified way. If you view is bullish and your longs and shorts are inthe same sector, you should hedge out sector risk with an intrasector trade spread. If you have a gross exposure limit of 100k with a 20k theme limit. Remember to apply beta to each long and short. You need to add all betas. for a total and a total of each long and short combos. If you have 2 cyclical long vs 2 defensive short, you would expect more long beta total since they are sensitive to business cycles. You need to ensure that you portion more money on the short side vs long. You need to figure out each beta’s contribution as compared to the total beta. Adjust the total for both long total and short total. TO figure weightings, you need to invert these percentages when allocating capital. Because the short side moves less, you need to portion more capital to the short side. For the long total, you need to portion each long stock out of the total long weighting of capital allocation. You need to invert again to get the correction portion capital allocation within the longer short side. You will be able to calculate the weight portion of the total trade capital, calculating the number of shares needed, based on each cost per share. You should present the % of each long and short position of the total portfolio as well. This type of trade of multiple stocks in a long with a short further diversifies the trade to reduce further risk.

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