Stock Market Startup: HedgingLab.com with Simon Lee
Apr 18, 2023
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In this engaging discussion, Simon Lee, founder of HedgingLab.com, shares his journey in creating a service that offers invaluable historical options and volatility data for investors. He dives into the evolution of options trading and the shift to weekly strategies, highlighting the importance of timing and market volatility. Simon discusses enhancements driven by user feedback, like a new delta adjustment feature, and key strategies for successful trading, emphasizing liquidity and backtesting methods to refine approaches.
HedgingLab.com provides essential historical options and volatility data services for traders, enhancing their strategy customization and decision-making process.
Simon Lee's transition from statistics to finance highlights the importance of user feedback in developing tools that meet traders' specific needs and challenges.
Deep dives
Overview of Hedging Lab and Its Origin
Hedging Lab specializes in providing historical options data and volatility services, aiming to assist traders and researchers in making informed decisions. The platform features a unique indicator, the Hedging Lab Volatility Index, which is derived from weekly options quotes and offers insights into market expectations for short-term stock movements. Simon Lee, the founder, transitioned from a background in statistics and computer science to finance, which has heavily influenced the development of Hedging Lab. The initiative emerged from user feedback gathered through Option Slam, showing the demand for a tool that empowers traders to customize their strategies and models.
Challenges in Developing Hedging Lab's Features
Creating a reliable indicator for short-term volatility posed significant challenges due to the unpredictability of earnings announcement timings, which can change last minute. The team had to manually verify these dates across various companies, making the process labor-intensive despite the use of some machine learning techniques. Additionally, the extensive historical data required optimization to ensure swift retrieval through API calls for users. These hurdles were key in shaping the functionalities offered by the platform, including robust data modeling to enable effective backtesting.
Trading Strategies and Future Developments
Traders utilizing Hedging Lab often focus on probability trading, analyzing odds to increase their chances of success. A popular strategy is to avoid trading around earnings dates, allowing traders to capitalize on expected volatility without the risk associated with unknown outcomes. Looking ahead, there are plans to enhance the platform further by adding delta adjustments and practice models that allow users to simulate trades based on historical data. Overall, the commitment to continuous improvement and responsiveness to trader needs positions Hedging Lab as a valuable resource for both novice and experienced traders.
In this week's episode, we're back with another edition of Stock Market Startup where I interview founders and developers who creating stock market related applications.
In this episode, I got to speak with Simon Lee of HedginLab.com. HedgingLab is providing historical options data and volatility data services for researchers and investors.
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