Eight years of trading experience
Eight years of trading experience
Subscribe to BTC
Subscribe to BTC
Share Dialog
Share Dialog
<100 subscribers
<100 subscribers
1、What is Alpha hedging strategy (1) Introduction Investors face systematic risk (i.e. Beta or Beta, β risk) and unsystematic risk (i.e. Alpha or Alpha, α risk) in market trading, and the strategy combination to obtain excess absolute return (i.e. Alpha return) by measuring the systematic risk and separating it is Alpha strategy. In a broad sense, there are various investment strategies to obtain alpha returns, including both traditional fundamental analysis stock selection strategies, valuation strategies, fixed income strategies, etc.; also including transferable alpha strategies that use derivatives to hedge out beta risk and obtain alpha returns, such strategies are known as alpha hedging strategies. (2) Methodology In the actual practice of asset management, the market is not fully efficient and alpha (excess return) exists for individual stocks. Jensen, an American economist, in 1968, systematically proposed how to evaluate mutual fund performance based on the expected return determined by the CAPM model as the benchmark return. According to the definition of Jensen's alpha. Excluding the portion that is explained by the market, the return that exceeds the market benchmark is the individual stock alpha. Simply put, the investment return of a portfolio = alpha return + beta return + other returns. alpha return refers to the absolute return, which is generally earned by the asset manager through security selection and timing. beta return refers to the relative return, which is earned by the manager through systematic risk taking. A significant percentage of quantitative equity hedge funds use alpha hedging strategies to build their strategy models to pursue absolute returns and seek alpha returns. The alpha hedging strategy often uses stock index futures as a hedge. Long in the stock market and short in the futures market. When the stock spot market loses money, it can make up the loss through the futures market; when the futures market loses money, it can make up the loss through the stock spot market. The success of alpha strategy includes the following main points
Whether the alpha returns obtained are high enough to exceed the risk-free rate and the index.
The variation of the basis difference between futures and spot.
The choice of futures contracts. alpha hedging is only a way to hedge the market risk, it needs to be used together with other theories when creating the strategy, how to get a high alpha return is the key to determine the overall return of the strategy.
In addition to relying on scientific strategies, speculative quantitative trading should also find ways to save money. One of the easiest ways is to enjoy the discounted transaction fees. Although the handling fee is small, it must not be ignored. I once calculated that as long as the transaction is frequent and the transaction time is long, the accumulation of a small amount will become a lot, the fee expenses may exceed 10,000 U. Next I will introduce several large trading platforms commonly used to reduce the fee method. (1) Reduce Binance's fees Binance is currently the world's largest digital currency exchange, you must sign up for Binance if you speculate in coins. The transaction fee will be deducted from the assets received. For example, if you buy Ethereum/USDT, the fee is paid in Ethereum. If you sell Ethereum/USDT, the commission is paid in USDT. Example. You place an order for 10Ethereum at 3,452.55USDT per share. Transaction fee = 10Ethereum0.1%=0.01Ethereum Or you place an order to sell 10Ethereum at 3,452.55 USDT per share. Transaction fee = (10Ethereum3,452.55USDT)*0.1%=34.5255USDT What many people don't know is that Binance transaction fees can also be reduced. If you want to reduce the Binance transaction fees, you must use the invitation link below or use the invitation code "Q022W7SC" to register. https://accounts.binance.com/en/register?ref=Q022W7SC
(2) Reducing OKX fees OKX is a professional digital currency trading platform that is loved by many users, and its trading fees can be reduced. Depending on the volume of transactions, OKX divides its users into two levels: general and professional. Ordinary users are graded according to their OKB positions, while professional users are graded according to their trading volume and asset volume. The different levels determine the trading fees for the next trading day. When calculating the fee levels, if the coin trading volume, total trading volume of delivery and perpetual contracts (USDT delivery contract, coin-based delivery contract, USDT perpetual contract, coin-based perpetual contract), option contract trading volume, and asset volume meet the conditions of different fee levels, users will enjoy the fee discount of the highest level among them. The first method: OKX official set the maximum saving percentage is 20%. Use the following link to register with OKX and save 20% on fees. https://www.ouyi.business/join/BTC1ETH The second method: Open the OKX website and enter "BTC1ETH" in the "Invitation Code" on the registration page to see the cashback percentage: 20% at the bottom. Be sure to enter this invitation code, otherwise you can not get 20% cashback percentage.
(3) reduce FTX fees FTX is currently growing very quickly, the contract players more exchanges, you must register FTX if you play the contract. if you want to reduce the FTX transaction fees, you must use the following invitation link to register. https://ftx.com/referrals#a=121031692
3, trading road is long, together to move forward Want to learn more about ways to reduce the commission? telegram: btcethcool We have set up a community to study trading, add telegram friends to pull you into the community.
1、What is Alpha hedging strategy (1) Introduction Investors face systematic risk (i.e. Beta or Beta, β risk) and unsystematic risk (i.e. Alpha or Alpha, α risk) in market trading, and the strategy combination to obtain excess absolute return (i.e. Alpha return) by measuring the systematic risk and separating it is Alpha strategy. In a broad sense, there are various investment strategies to obtain alpha returns, including both traditional fundamental analysis stock selection strategies, valuation strategies, fixed income strategies, etc.; also including transferable alpha strategies that use derivatives to hedge out beta risk and obtain alpha returns, such strategies are known as alpha hedging strategies. (2) Methodology In the actual practice of asset management, the market is not fully efficient and alpha (excess return) exists for individual stocks. Jensen, an American economist, in 1968, systematically proposed how to evaluate mutual fund performance based on the expected return determined by the CAPM model as the benchmark return. According to the definition of Jensen's alpha. Excluding the portion that is explained by the market, the return that exceeds the market benchmark is the individual stock alpha. Simply put, the investment return of a portfolio = alpha return + beta return + other returns. alpha return refers to the absolute return, which is generally earned by the asset manager through security selection and timing. beta return refers to the relative return, which is earned by the manager through systematic risk taking. A significant percentage of quantitative equity hedge funds use alpha hedging strategies to build their strategy models to pursue absolute returns and seek alpha returns. The alpha hedging strategy often uses stock index futures as a hedge. Long in the stock market and short in the futures market. When the stock spot market loses money, it can make up the loss through the futures market; when the futures market loses money, it can make up the loss through the stock spot market. The success of alpha strategy includes the following main points
Whether the alpha returns obtained are high enough to exceed the risk-free rate and the index.
The variation of the basis difference between futures and spot.
The choice of futures contracts. alpha hedging is only a way to hedge the market risk, it needs to be used together with other theories when creating the strategy, how to get a high alpha return is the key to determine the overall return of the strategy.
In addition to relying on scientific strategies, speculative quantitative trading should also find ways to save money. One of the easiest ways is to enjoy the discounted transaction fees. Although the handling fee is small, it must not be ignored. I once calculated that as long as the transaction is frequent and the transaction time is long, the accumulation of a small amount will become a lot, the fee expenses may exceed 10,000 U. Next I will introduce several large trading platforms commonly used to reduce the fee method. (1) Reduce Binance's fees Binance is currently the world's largest digital currency exchange, you must sign up for Binance if you speculate in coins. The transaction fee will be deducted from the assets received. For example, if you buy Ethereum/USDT, the fee is paid in Ethereum. If you sell Ethereum/USDT, the commission is paid in USDT. Example. You place an order for 10Ethereum at 3,452.55USDT per share. Transaction fee = 10Ethereum0.1%=0.01Ethereum Or you place an order to sell 10Ethereum at 3,452.55 USDT per share. Transaction fee = (10Ethereum3,452.55USDT)*0.1%=34.5255USDT What many people don't know is that Binance transaction fees can also be reduced. If you want to reduce the Binance transaction fees, you must use the invitation link below or use the invitation code "Q022W7SC" to register. https://accounts.binance.com/en/register?ref=Q022W7SC
(2) Reducing OKX fees OKX is a professional digital currency trading platform that is loved by many users, and its trading fees can be reduced. Depending on the volume of transactions, OKX divides its users into two levels: general and professional. Ordinary users are graded according to their OKB positions, while professional users are graded according to their trading volume and asset volume. The different levels determine the trading fees for the next trading day. When calculating the fee levels, if the coin trading volume, total trading volume of delivery and perpetual contracts (USDT delivery contract, coin-based delivery contract, USDT perpetual contract, coin-based perpetual contract), option contract trading volume, and asset volume meet the conditions of different fee levels, users will enjoy the fee discount of the highest level among them. The first method: OKX official set the maximum saving percentage is 20%. Use the following link to register with OKX and save 20% on fees. https://www.ouyi.business/join/BTC1ETH The second method: Open the OKX website and enter "BTC1ETH" in the "Invitation Code" on the registration page to see the cashback percentage: 20% at the bottom. Be sure to enter this invitation code, otherwise you can not get 20% cashback percentage.
(3) reduce FTX fees FTX is currently growing very quickly, the contract players more exchanges, you must register FTX if you play the contract. if you want to reduce the FTX transaction fees, you must use the following invitation link to register. https://ftx.com/referrals#a=121031692
3, trading road is long, together to move forward Want to learn more about ways to reduce the commission? telegram: btcethcool We have set up a community to study trading, add telegram friends to pull you into the community.
No activity yet