SignalPlus: Better Options Auxiliary Tools | Project Introduction

The latest data disclosed by the American Futures Industry Association FIA in 2022 shows that the total global derivatives trading volume in 2021 will reach 62.58 billion contracts, of which futures contracts will increase by 14.6% year-on-year, reaching 29.28 billion, options contracts increased 56.6% year-on-year to 33.31 billion contracts.

In mature markets, the use of futures and options has reached the same level. In emerging markets, options are still in the blue ocean. According to coinglass data, the current open interest of BTC futures on the entire network is about 9.53 billion US dollars, while the open interest of options is only 3.45 billion US dollars, which is quite different from the traditional financial market.

In traditional finance, options are widely used, and there are many well-known investors such as Warren Buffett who rely on options to obtain high profits. According to public information, Buffett has used call options in many investment and M&A cases to obtain excess returns. It is reported that before the implementation of the Dodd-Frank Act, Berkshire Hathaway’s $63.1 billion in derivatives positions were worth as much as $38 billion in stock index options.

When facing a black swan, options are also a good tool. Universa Investments, founded by Taleb disciple Mark Spitznagel, author of "Black Swan", uses options to obtain excess returns in black swan events many times. During the 2008 subprime mortgage crisis, Universa bought a large number of S&P 500 put options. The deal netted Mark approximately $5 billion. In the first quarter of 2020, the U.S. stock market crashed, and Mark obtained a 4100% return on investment by relying on options.

There are countless articles on the market that are popularizing the advantages of options, such as being able to respond flexibly to market changes , more controllable risks, etc. However, due to the complexity, acceptance and market depth of the option itself, the encrypted option market has always been small in size. Moreover, due to its small market size, there are fewer platforms willing to develop tools based on options.

In fact, Crypto needs options more than traditional financial industries. Crypto as a whole has higher volatility and greater risk exposure. Options can provide better risk management and tradable volatility. However, the entry threshold for options is relatively high. In the field of Crypto, there is still a lack of professional option tools that can reach the level of Wall Street.

Newbie-friendly and customizable professional platform

A group of people created SignalPlus. SignalPlus is a platform focused on encrypted options tools, dedicated to the democratization and popularization of options.

SignalPlus is currently connected to the API of Deribit, Bybit and other platforms, you can use it directly < a href="https://t.signalplus.com/toolkit" target="_blank">SignalPlus toolkit  for market analysis and trading. All transactions made by users on SignalPlus are through the trading platform API.

On the interface, SignalPlus focuses on novice-friendly and highly customizable to meet professional trading needs.

Original image source: SignalPlus Dashboard

For users, after accessing the trading platform API, they can link different platforms through SignalPlus and conduct cross-platform transactions. SignalPlus Dashboard  can fully display market and quotation information. This is very convenient for novices, allowing them to understand the market faster and make transactions.

For professional traders, Dashboard also provides interface customization function, traders can arrange the interface according to their needs and habits . And SignalPlus provides free data analysis and market opportunity analysis charts for traders to choose from, which allows them to trade more flexibly.

In fact, one of the reasons why many users prefer to use futures and refuse to use options is that their profit and loss are relatively unintuitive . In order to make it easier for novices to understand options, SignalPlus visualizes the earnings and supports simulating the profit and loss of its strategy before placing an order. Simulating the potential profit and loss of a transaction before placing an order can help you better understand the risks and returns associated with different strategies and make more reasonable investment decisions.

Original image source: SignalPlus Break Even

Smart Dealing

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In addition to the support on the interface, SignalPlus also has some built-in option strategies for users to choose from, including straddle arbitrage (Straddle), wide straddle arbitrage (Strangle ), Butterfly, etc. At the same time, the PnL of the strategy can be directly displayed on the right side of the strategy interface, which is helpful for users to choose. For users who are not familiar with options but want to try, they can also place orders directly according to the PnL diagram of different strategies. After being familiar with and mastering options, formulate strategies that conform to your own judgment.

SignalPlus built-in option strategy< /blockquote>

At the same time, SignalPlus also provides traders with more advanced features. Balance Trade breaks down a portfolio into smaller trades to reduce market impact and side risk. If you want to hedge Delta (1), Gamma (2) or Vega (3), you can also use Delta Exchange, Gamma Neutral and Vega Netural modules, SignalPlus will use perpetual contracts or adjust the size of some option positions to control the corresponding Greeks .

Advanced master, Delta dynamic hedging

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In addition to providing help for novices, SignalPlus also provides Delta dynamic hedging function (DDH, Dynamic Delta Hedging) for professional traders. To enable the DDH function, it is necessary to ensure that the account holds at least USD 1,000 worth of Token.

DDH is a free function. After it is turned on, the DDH robot will automatically track the position Delta and hedge according to the parameters. DDH has two modes, Lite mode and Pro mode. In Lite mode, users only need to set the DDH trigger threshold, and the robot will automatically hedge. In the Pro mode, users will have more room for manipulation and can specify how to quote and place orders. The history of DDH has been integrated into Telegram. When the trigger is successful, the user can get a notification through Telegram.

It is reported that a novice education section will be launched in the future to provide users with option science education. Currently, SignalPlus is sharing its morning news on official Medium  Interpretation of information and explanation of technical indicators. It only takes a few minutes every day to understand the main dynamics of the global economy, suitable for users who prefer macroeconomics.

Of course, judging from the information currently released by SignalPlus officials, SignalPlus will continue to be a professional trader And institutional users have prepared a professional version of the trading toolkit, institutional solutions, and market-making robots and other toolkits.

The AI-driven trading robot developed by SignalPlus can fully automate market making and risk hedging, supporting more than 100 user-defined parameters to support Complex risk profile. SignalPlus institutional solutions cover trading and analysis modules, and can provide exclusive customized, fully automatic robot solutions specially adapted to institutional strategies and integrated management toolkits.

Finance background

As of August 2022, SignalPlus has completed a total of US$20 million in financing. Among them, GBV Capital is the lead investor in its seed round, and HashKey Capital is the lead investor in its A round. Incuba Alpha, Chiron Partners, SNZ Holding and Baboon.VC all participated in its financing.

In the public information, SignalPlus did not disclose its official member information, but HashKey Capital has stated that the SignalPlus team is mainly from Wall Street investment banks , venture capital and technology companies, with Wall Street-level risk control and expertise. Leslie, the co-founder of GBV, also said that he has known the core team for many years and has a deep knowledge and understanding of derivatives and volatility products.

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Judging from the current trend, the cryptocurrency options market is about to explode, and experienced traditional investors will also enter Participate in the game. For investors who want to seize this opportunity, mastering the use and skills of more tools may be helpful to their trading career. For users who do not understand options, they can also conduct various simulations and tests through SignalPlus to get familiar with and master options faster and increase their investment winning rate.

(1) The price relationship between cryptocurrency and options can be described by Delta. Delta reflects how much the option price changes as the price of the cryptocurrency changes.

(2) Gamma is the sensitivity of Delta to the target price, and Gamma reflects the variation of Delta with the target price.

(3) Vega is used to measure the relationship between option price and expected volatility.

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