Our Strategies.
The Certainty Bias is the human inclination to guarantee the future in an uncertain world. This bias drives insurance industry profits as demand for certainty drives up premiums. It also appears in the financial derivative markets with overpricing of options.
This overpricing is observed in most markets and through all market periods or regimes. Its ubiquity indicates that it is a result of a broad human cognitive bias rather than a narrow market quirk or anomaly.
Coastal Sigma manages the process of evaluating these risk profiles for our customers.
Past performance is no guarantee of future results
Process
Market Data:
Monitor Price and Volatility Levels
in 15 core markets.
Signal Generation:
Flag markets that have a high
potential for a profitable option short
and calculate trade specifics.
Trade Progression:
Monitor predetermined stops.
Trade Execution:
Rebalance new positions with open
positions considering premium levels
and margin requirements.
