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Alpha is a quantifiable edge in systematic trading. A set of predictors that can be evaluated during entry and that have a statistically significant relationship to a position's terminal PnL can be considered alpha.
Vertical Spreads are directional options strategies that can be applied in different market conditions. In this post we are going to show four different ways to use MesoSim's Strike Selector to implement Credit and Debit spreads.
This is part two of the MesoSim Advanced Patterns series, where we explore practical ways to improve your options trading simulations. Learn how to use 25pt strike multiples, track bid-ask spreads, set smarter entry and exit rules, and integrate external data for better results.
Delta hedging aims to eliminate or reduce the risk of price movements in the underlying asset, and it is a common practice among Options Traders.
Nassim Taleb dedicated an entire book, Dynamic Hedging, to the subject of hedging, and we'll cover some aspects of it in relation to MesoSim.
Delta means the sensitivity of a derivative price to the movement in the underlying asset. It is either expressed in percentages or in total amounts. A 50% delta is supposed to mean that the derivative is half as sensitive as the asset and that one needs two dollars in face value of the derivative to replicate the behavior of one dollar of the asset.
Source:
Dynamic Hedging by Nassim Taleb, Chapter 7: Adapting Black-Scholes-Merton: The Delta
🤖 We're Thrilled to Announce the Integration of ChatGPT with MesoSim, the Advanced Options Simulator!
As we continuously strive to provide our users with the most innovative and efficient tools in the financial technology space, the incorporation of MesoSim's Knowledge Base to ChatGPT represents a major advancement in how you can interact with our platform.
Enhanced User Interaction: ChatGPT's cutting-edge AI capabilities allow for a more intuitive and conversational user experience. Whether you're querying complex options strategies or seeking help with Job Definitions, ChatGPT is here to assist you in plain language.
Personalized Support: Get instant, AI-driven answers to your queries without waiting. From explaining the Greeks in options trading to offering step-by-step simulation guidance, ChatGPT tailors its support to your unique needs.
Education and Insights: Alongside its support functionalities, ChatGPT serves as an educational companion, offering explanations, tutorials, and valuable insights to enrich your trading knowledge and decision-making.
Continuous Improvement: The integration is just the beginning! We're committed to evolving the platform's capabilities, ensuring that MesoSim remains at the forefront of technological innovation in the trading world.
Get Started: Dive into a seamless, smarter trading experience today. Engage with ChatGPT on MesoSim and explore the enhanced possibilities at your fingertips.
👉 Access MesoSim with ChatGPT here
Thank you for being a part of our journey. We're excited to embark on this new chapter with you, pushing the boundaries of what's possible in options simulation. Your feedback is invaluable to us as we work to make MesoSim your go-to platform for all things options.
While ChatGPT can now create MesoSim Job Definitions, it may suggest job definitions that do not fully capture the specified trade. Additionally, it might omit optional fields, leading to warnings in the Job Editor. Most of the time, these warnings can be safely ignored.
We recommend that you still review the generated job and adhere to the Strategy Development Lifecycle.
Happy Trading!