Automated Hedging
Many small to medium sized commodity consumers do not have the staff or expertise to implement sophisticated hedging strategies. When prices go up suddenly these companies can watch their profits tumble as they struggle to raise prices to account for the new higher costs. This leaves them vulnerable to price undercutting from competitors who have locked in lower prices for fuel or other commodities by hedging.
Automated hedging strategies are designed to allow small to medium sized commodity consumers the ability to hedge their exposure to price increases without specialized staff or expertise. Our algorithmic hedging programs remove the human emotion from the hedging process so you lock in low prices before they rise too high. At the same time, our proprietary automated strategies keep the costs of your hedging program low since they are designed take your hedges off when prices stabilize or decline. The timing and identification of changes in market trend is the key to the Automated Hedging advantage.
No need for experts or guessing. Hedging Automation.
About Our Company
Hedging Automation, LLC was founded by Curtis Faith who became famous for turning $2 million into over $31 million while in his early 20s as part of a group taught by the Chicago commodities trader Richard Dennis. The group has since become famous in trading circles as the Turtles. Curtis is the author of Way of the Turtle which tells the story of the Turtles and the methods they used. His new book Inside the Mind of the Turtles: How the World's Best Traders Manage Risk discusses the techniques used by traders and successful entrepreneurs to manage risk and uncertainty under rapidly changing circumstances.
At Hedging Automation, Curtis applied his proprietary techniques for recognizing changes in market trends to the problem of timing for hedging for consumers of basic commodities. These techniques take the guesswork out of hedging and can reduce the losses associated with carrying a hedge when prices decline.
More About Hedging
Hedging is a process for reducing the risk associated with a sudden unexpected rise in prices for a basic commodity like crude oil, diesel fuel, wheat, or sugar. Many companies buy these commodities regularly in the course of their normal business operations. Because of this they are vulnerable to sudden increases in the prices of these commodities.
Companies can protect themselves from rises in the cost of basic commodities by purchasing contracts in the futures market. This process which tries to lock in prices is called hedging. When done correctly hedging can shield companies from the effects of rising prices for months or even years giving them valuable time and competitive advantage.