Over Twenty Percent of the Global Economy ($110 Trillion GDP) is Affected by the Weather
Due to Climate Change, Severe Weather Events are Becoming More Frequent
EVENTUALLY, WEATHER WILL BECOME THE LARGEST TRADABLE MARKET
Weather XM, the only decentralized, hyper-local weather station network is joining forces with WeatherMage, pioneers in weather derivatives education and weather risk trading.
Together we will bring new opportunities for you to learn about weather derivatives and the weather risk market. Through ownership of our — token, you can participate in the development of its unrealized potential, while earning true Alpha staking returns.
Our proprietary systems ingest and process real-time Weather XM data through an AI that has been developed with guidance from expert weather derivatives and commodity traders. This output is then executed in the markets by experienced traders allowing us to fully capture edges from both our analysis as well as trader acumen.
With this methodology, there are numerous ways that we will create value in this space. Since weather risk is embedded in so much of the global economy, one way to extract value is by what is often called “cross-commodity” trading. This is simply trading one commodity against another where the risks are related.
For example, the following is output from one of our US Natural Gas trend models applied against (cross) a winter HDD weather derivatives structure. These are the signals that would have been executed in the respective years against the actual weather that manifested in the same period of time.
Natural Gas - Weather Derivatives Cross Commodity Strategy
Historical Analysis for Weather Derivatives Cross Trading Application
Historical Trend Model Performance
Nov 1 - Feb 25.
Synthetic Underlying: Chicago ORD November-March HDD
Chicago ORD MN 1/2 Sigma Short Strangle
Summary PL Components
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Analysis Year (Click to change year)
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ENSO During Period
Trend Model Trades
Another system we employ takes real-time Weather XM data and uses it to generate short and long term trading signals for Natural Gas futures (NG) itself.
The two models below are named NGFI and NGTrend. They were designed and trained to identify short and longer term trends in the natural gas (NG) futures contract based on the Weather XM data feed alongside other relevant data sources.
Disclaimer: These signals are in real-time and are presented for illustration only. Do not copy-trade these signals. Trading futures can result in significant losses..
Natural Gas (NG) Model Suite
Models NGFI (First Impulse) and NGTrend
Weather XM stations and graphics here.
NG Price:
Date Range: 12/1/2024 - 2/6/2025
RELOAD MODEL
Model: NGFI
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Model: NGTrend
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We believe that the future of the weather market lies in tokenization to democratize the trading of weather risk.
Therefore, there is much more that we are planning to do.
We will:
… create programs to educate about weather derivatives and how to trade them for risk management as well as speculation.
… build trading desks and investment platforms to generate “true” Alpha for all investor types.
… teach everyone about the effects of climate change in an unbiased and non-political manner.
…AND
… TOKENIZE weather to make its trading and risk management much cheaper and more available to everyone.
And in every step of the way, we will create staking value for our token holders. The — token is your gateway to this exciting new market.
