POWERED BY SLICEMATRIX-IO
THE NEXT GENERATION IN MACHINE INTELLIGENCE
Reduce Volatility Risk protect returns Reduce Parameter Risk
WHAT IS IT?
One of the critical requirements that any good trader thinks about when developing their trading system is how to protect their downside risk, especially in today’s markets.
The Risk Hedger API has two main functions:
- get_hedges: Implements a powerful machine intelligent model to dynamically finds the best hedges for your security position.
- get_ratio: The Risk Hedger accurately calculates the Dynamic Hedge Ratio for a given securities pair
The Risk Hedger is powered by SliceMatrix-IO which is a next generation global machine intelligence platform as a service (PaaS).
how does pricing work?
The Risk Hedger Free Tier includes 100 free API Calls per month. After that it is $0.01 per API Call.
Enterprise rates are available for high-volume use cases, contact firstname.lastname@example.org for more information about enterprise packages.
Optimize your Cost
Every trading day you make 5 API calls to get_ratio. Assuming there are about 20 trading days in a month that is 100 calls in a month.
Since the free tier is set to 100 calls, in this example the total cost is (100 Calls - 100 Free Calls ) x $0.01 per Call = $0
You have a list of 100 pairs for which you want to generate hedge ratios on a daily basis.
Assuming there are about 20 trading days in a month that amounts to 2000 calls per month.
In this case your cost would be ( 2000 Calls - 100 Free Calls ) x $0.01 per Call = 1900 Calls x $0.01 per Call = $19.00
In this scenario you are long a portfolio of 300 stock symbols you wish to hedge. For each stock, you make a call once a day to 'get_hedges' to get the top hedges for that symbol. These are stocks that best minimize the directional risk of the target symbol.
Then you select the top 3 hedges and get the current hedge ratio and use them to reduce the directional risk to your portfolio.
Assuming there are about 20 trading days in a month...
Calls to get_hedges = 20 x 300 = 6000 Calls to get_ratio = 20 x 300 x 3 = 18000
Total calls = 24000
Thus the total cost is ( 24000 Calls - 100 Free Calls ) x $0.01 per Call = 23900 Calls x $0.01 per Call = $239
HOW DOES IT WORK?
The Risk Hedger is delivered via an API.
Users can build trading using our open source Python SDK. The Python client can be simply install using pip:
pip install risk_hedger
Once the Python client has been installed then simply call the 'get_ratio' function and enter the securities that you want to identify the hedge ratios.
import risk_hedger io = risk_hedger.HedgeIO(api_key) io.get_ratio(base = "AAPL", hedge = "GOOG")
Call Risk Hedger's 'io.get_hedges' function which will provide a list of the closes securities to the target ticker based on similarities of price behavior over time.
*Hedges:* TMO 0.134141 PKI 0.161531 WAT 0.177464 ITW 0.177488 SWK 0.179677 RSG 0.220079 ADI 0.220296 MSFT 0.220570 CVX 0.220989 BBT 0.221543