Build a Custom Single-Stock Hedge
Step 1
- Choose model(s), stock to hedge, and dates to run the simulation; Click ‘Add Experiment’ → ‘Smart trade,’
![](https://cdn.prod.website-files.com/633fe0e8040abd10fc9a3420/63fec03d49df0bb0ffecc7d0_Screen%20Shot%202023-02-28%20at%209.49.43%20PM.png)
Step 2
- Define the trade size and your universe to construct the hedge + add constraints such as market cap, ADV, squeeziness, and others.
![](https://cdn.prod.website-files.com/633fe0e8040abd10fc9a3420/63febe4496fc7881190c4531_Screen%20Shot%202023-02-28%20at%209.52.18%20PM.png)
Step 3
- Run Omega Point’s Optimizer; adjust concentration if needed, backtest, compare to hedge alternatives such as broad market / focused ETFs.
![](https://cdn.prod.website-files.com/633fe0e8040abd10fc9a3420/63fec0cc40f8ce16e57a64fb_Screen%20Shot%202023-02-28%20at%2010.03.46%20PM.png)