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Hedge Optimizer

The Basics

The hedge optimizer is similar to the trade optimizer, except the hedge optimizer analyzes static models. The Hedge Optimizer will bulk calculate different mixes of funds, ETFs, and stocks in 50%/50%, and 90%/10% weightings.

This tool makes quick and easy work of exploring, analyzing and testing short and long term trends of numerous tickers pairings.

A common use of the hedge optimizer is to create a “Family” of long positions and a “Hedge” of short positions. The hedge optimizer will quickly mix each 90%/10% pair of the long positions with each of the short positions.

Also, its common to create a “Family” of equity positions and a “Hedge” of bonds, sectors, or other non-correlated assets. The hedge optimizer will mix each family/hedge pair in a 50%/50% model to display which pairs create strong risk adjusted strategies.

Functionality

hedge optimizer help

    • Calculate Button – Click to start calculating hedge models
    • Start Date – start date of all calculated hedge models
    • Positions – Select 50% to mix Family tickers and hedge tickers 50%-50%. Select 90% to mix family and hedge tickers 90%-10%.
  1. Family – Enter a family name to use family tickers as “long positions”
  2. Hedged – Enter a family name to use family ticker as “hedge positions”
  3. Columns
    • Ticker column is an arbitrary value given to each model.
    • Name column describes the allocation of the model.
  4. Button
    • Show Chart – Launch UI chart to visualize risk and return
    • Sent to Spreadsheet – Send all tickers to FT Cloud Spreadsheet
  5. Recompute Button – Recalculate statistics in spreadsheet. This is a quicker refresh of the screen that does not recalculate each model.
  6. Date selectors – Dial in specific date ranges for the spreadsheet statistics