Procurement and Trading Strategies
Enhance your trading edge & optimize your procurement strategy with unique geospatial alpha
custom procurement & hedging schedule
AI-informed hedging and trading
Commodity futures strategies
Revolutionary deep learning models, fueled by geospatial data, recognize complex patterns and signals to enhance your strategy and inform exclusive market insights.
Unparalleled price forecasting, powered by deep learning and AI.
Commodity markets are intrinsically connected to patterns on the Earth. Integrate price forecasts built on deep learning models into your decision-making to gain an operational advantage.
For hedging & procurement
Protect your supply chain against increasingly volatile commodity prices while managing risk exposure with our clear, configurable buying strategies that best meet your business needs and risk parameters.
The Descartes Labs Procurement Strategy employs forecasts of multiple horizons to generate a forecast trajectory of prices faced during the entire procurement period. It gives Commodity Risk or Procurement Managers, and those in a direct procurement role, the advantage to lock in purchases of required input to their final good at the lowest price (relative to competitors or their given benchmark).
Descartes Labs has demonstrated a track record of savings for our clients, which can significantly impact consistency of earnings, facilitate budget/planning and deliver consistent procurement cost savings.
A daily purchasing report including:
- A clear prescription of actions recommended by the model.
- A per-quota-month breakdown of forecast price evolution, benchmark purchasing period price and strategy lock-in to facilitate trust in our strategy’s prescriptions.
- Transparency into driving factors behind price changes.
Configurable features include quota, purchasing/hedging schedule, specific contracts, purchasing/benchmark periods, and daily caps/floors on quantities.
Consistent cost savings
Significantly impact cost savings with strategies informed by proprietary geospatial data. Enhanced with machine and human intelligence, our insights empower you with clear actionable recommendations.
For trading and investments
Our innovative Trading Strategy Package is meticulously designed to empower you with the edge you need to navigate the intricacies of financial markets.
Powered by a specific horizon forecast from our Quantitative Price Forecasts Product library, this product provides:
- Clear actionable reports provided daily:
- Position level prescriptions to know precisely when to enter and exit/stop-out a position and the strategy’s reasoning.
- Target entry prices and the strategy’s current view, given the price forecast, of the exit date.
- Running tabs on the P&L by order, by contract, and in aggregate
- Risk management capabilities - trailing stops or stops based on cumulative price moves, position limits.
- Transparency into driving features behind the price forecast evolution
- Alpha driven by features from a broad library of forecasts in the logistics/supply-chain, agriculture/industrial production, weather, and human activity. These features are combined with financial market signals (like price, trading action and positioning data) from the futures and options markets.
Our strategies are built on a solid foundation of extensive market research and data analysis. It has been rigorously tested across various market conditions to ensure reliability and effectiveness. These backtests are also available to you for independent verification.*
A daily trading strategy report including:
- An overview of running Profit & Loss for the strategy compared with initial Profits & Loss
- Clear statement of model recommendation for orders to execute (open/close, long/short, quantity)
- Tracking at both contract level and position/order level (including size of position, direction, entry date and price, target exit date and price
- Transparency into driving factors behind price forecast changes
- Ability to include position limits and stop loss guardrails into strategy
Optimize trading profit
Superlative strategies for your trades with pricing forecasts, actionable insights, transparent prescriptions, and proven savings.
Daily insights, delivered.
*Trading involves risk and past performance is not indicative of future results. The information and prescriptions provided by our strategy should be used as a tool to assist your trading decisions and not as a guarantee of profits. Please ensure you understand the risks associated with trading and only invest what you can afford to lose.
Gain a market advantage with AI-informed
commodity insights and strategies.
Talk to an expert to learn how Descartes Labs can grow your business.