Algorithmic Hedging

Take the guesswork out of making hedging decisions

The market is as unpredictable as ever. We utilize technical indicators that trigger buy-signals. Lower cost, less risk.

Algorithmic Energy Hedging

Energy prices have risen and plummeted over and  over, many surprises and extremes. Your team is skilled in your ability to judge, but with the aid of a technical/algorithmic hedging program, much of the  emotion and variability in human behavior isminimized.

Is there a best way to buy?
Formulaic approaches have been and continue to show strong performance and reliability in making both short and long-term hedging decisions.
By back-testing the various parameters and indicators and determining the most advantageous buying formula prior to the start of the program, you’ll achieve the expected results and feel  confident in making these ongoing decisions.

Our algo formulation is designed to

Avg. 11% savings vs. market averages and baseline
hedging decisions (based on current managed portfolio over last 12m)

Provide more long-term predictability than a point-in-time purchasing

offer a programmatic approach that eases resource constraints and helps build consensus across multiple decision makers

Increase budget certainty and reduce volatility risk.

Backtest & Algo Identification (Case Study)

Program Parameters

Prudential Energy utilizes various purchasing models that are back-tested in order to determine the most opportunistic buying strategy. Typical indictors include:
  • Average Directional Index
  • Average True Range
  • Keltner Channel
  • Parabolic SAR
  • Stochastic Oscillator
  • Moving Average Convergence Divergence
  • Simple/ Exponential Moving Average
  • Directional Movement Indicator
  • Relative Strength Index
  • Standard Deviation-based indicators

Tell us about your current energy challenges...

We will provide you with specific solutions that will meet your exact needs.

  • Strategy & Pathway
  • Cost Reduction
  • Risk Mitigation
  • Data Automation & Tracking
  • Energy Transformation