With DT.PFC, Decision Trees offers a highly developed tool to generate HPFCs and DPFCs.
To generate a PFC, DT.PFC requires two steps:
- To begin with, a structure curve is generated by means of specialized regression models. This curve comprises all information on daily, weekly and yearly structures of the relevant commodity price.
- In the second step of the PFC optimization in DT.PFC, the hourly or daily price forward curve is adjusted, taking full market price information for all standard and off-standard products into consideration. Definable smoothing factors applied to the end/beginnings of each month are included in the optimal, arbitrage-free HPFC/DPFC.
As a result, a PFC is generated that features the best possible structure and includes all available market price information.
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