SearchOnce your forward curve is in place, the next step is to understand the range of possible future prices – and the impact those prices might have on your positions.
That’s where simulation comes in.
Watch the video below to see how quickly Lacima Trader generates accurate, insightful simulations aligned to your forward curve and historical data.
In part 2 of our Navigating Japan Power Options series, we explore why simulation is more than just an academic exercise. Using Lacima Trader > Sim, we show how Monte Carlo price paths help bring risk and opportunity into focus:
- Reflect seasonality, mean reversion, and peak/off-peak volatilities
- Explore thousands of potential market paths in half-hourly resolution
- Assess exposure through distribution, not just averages
Simulation bridges the gap between market structure and real-world trading outcomes.
– Jivan Drungilas, Quantitative Analyst
Why is this important for Japan power? Because volatility matters. Seasonal peaks, changing demand, and evolving regulations mean traders need tools that move as fast as the market does.
Simulation lets you:
- Stress-test strategies before committing capital
- Measure Value-at-Risk and other key performance metrics
- Understand the true range of possible outcomes
👉 Interested in multi-factor models or simulating joint price/load behaviour? Start a conversation with us.
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