Main Screen
Last updated
Last updated
The WeatherMage main screen displays all of the geographical regions that are supported. Each colored point on the global map represents a tradeable location.
As of this writing, only temperature based and parametric weather derivatives are offered. Additional weather indices like snowfall, rainfall and others are planned and will be added in the near future.
The top center graph displays the cumulative realized PL by region. The time span shown covers account inception until the current date.
The bottom center panel shows the tradeable locations organized by geographical regions.
The central map is interactive as well. Each colored point on the main screen opens an information screen when pressed.
The top chart presents the historical cumulative degree-day observations for the seasonal periods. This data is presented along with the running 10-year average of the observations. By looking at the graph along with the 10 year averages, the trader can easily see trends in the temperature readings for that location.
The bottom chart presents a novel concept in visualizing degree day information. Weather derivatives and how the contracts manifest through time have never been presented in a way that could potentially show their effect and correlations with other assets. Since the typical markets generally move according to what is known as a "random walk", WeatherMage implements a new calculation method to present weather derivatives in a similar manner.
The "synthethic underlying" is the WeatherMage name for this method. It is applicable to all weather contracts and potentially uncovers relationships among markets that may have not been seen before.
More on WeatherMage's "synthethic underlying" will be discussed later.
The bottom panel on the main screen contains all of the regions that are supported for trading.
Beneath each region are slots that show the unrealized PL of the currently active trades in that region, separated by underlying type. HDD trades are designated in blue, while CDD and CAT trades are designated in orange. Parametric trades are colored in pink. At a glance, a weather trader can easily see how their positions are performing in each region.
Clicking on each of the regions will open the trading panels for the respective region. The trading panels and their functionality are discussed in further detail later.
There are also links to online resources for US and global weather forecasts that the trader can access easily. However, a very important menu item for the weather trader is the "Deviations" item.
Pressing this triggers the WeatherMage system to calculate how the seasonal cumulative weather readings have deviated from the unbiased averages in real-time. These deviations are then presented as an overlay on the main map.
Each circle is centered on the city that it represents. The seasonal degree day deviations are presented as standard deviations from normal and referenced by the key in the lower right.
Keep in mind that these are seasonal deviations from the unbiased average for the full season. They are not the same deviations presented on the location panels.
This is a powerful tool as the WeatherMage trader can easily see which cities, and in which global region, is experiencing warmer or cooler than normal temperatures for the season. At a glance, the global effects of climate and weather patterns can easily be seen and the necessary trades placed.
There are two smaller panels with information on the trader's portfolio on the main screen:
The WeatherMage platform will be released internationally as well as in the US. Future versions will allow traders to redeem their credits for awards and even cryptocurrency. The amount traders can redeem will be limited to the amount of Realized PL, since this is a running total of how much traders have won as a result of their weather trading.
