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Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,388
Thanks Received: 10,207
The 24x7 of crypto vs the traditional 23x5 or even 16x5 of traditional futures markets is interesting and potentially a risk management problem if your trading futures. CME's Jan Bitcoin closed at $29385 on Thursday 31st which probably equates to about a $29250 cash price. Here we ae on Sat 2nd just after midday, CME markets will not reopen for another 27 hours, and Bitcoin is trading $31544 on Coinbase and has been as high as $33,300. Thats a 13.8% move while the markets have been closed over a long weekend!
A bit of alpha for you. There is a thing in Crypto called CME gaps. If you go through the charts you'll find that there has been only one "CME Gap" recently that hasn't been filled. Not saying the latest gaps will be filled. But History suggests.....
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,388
Thanks Received: 10,207
Bitcoin traded $34,810 over night and we are still 8 hours away from US Futures markets opening. At current price 33905 we will be looking at an open of +15.3%
The 24x7 nature of crypto is certainly attractive for trading. I would very much be interested in hearing of cost-effective ways of trading it with moderate leverage (you don't need much given the volatility). I have an account on kraken that I might toy with as an experiment.
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,388
Thanks Received: 10,207
Guess that depends upon whether trading is your job or not. Since it is mine, I wish it was just 5x23 so I didn't have to worry about non-work days. On the other hand if your a part time trader having something good to trade on the weekends is probably nice.
Yeah I echo that, 24x7 would be a very stressful first 1-2 years of setting things up. Even 23x5 takes a lot of effort. After the honeymoon phase you will start to see it as a job and that perk wears out.
I'm sure you've seen this image before. It really takes a convergence of passion, mission, profession and vocation for you to keep up doing something 24x7 or you'll burn out.
To me the most attractive part about crypto markets is the low barrier to entry. Other than that it feels to me like dedicating your whole life to trading only TSLA stock for 24x7.
The one thing missing from this image is what I call the concept of correlated learning. Even in electronic market making I feel somewhat tired because I am meeting the same type of people over and over again, and getting good at something that only a handful of people could appreciate. But at the very least my skills are recyclable if I am to throw in the towel one day and decide I wanted to work for a tech firm, a startup or really any financial institution. It's dubious if you can find that sort of meaning from acquiring crypto knowledge.
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,049 since Dec 2013
Thanks Given: 4,388
Thanks Received: 10,207
Actually haven't seen that before. While I do understand the need and roll of speculators I'm not sure many of us bring much value to the world! Hence I believe I am lucky enough to reside in that bright green area between Passion and Profession.
You shouldn't have to worry about fees too much if your not using alot of leverage. Unless your a scalper and use market orders alot!
Market order roundturn is about 0.08% on Binance Futures (This would be 0.40% with 5x leverage) on the first volume tier. But if you're aiming to catch 0.5-1%+ (2.5/5% with 5x leverage). It shouldn't matter too much.
A few of the futures exchanges even pay you to create liquidity (Limit orders).
Just be aware to familarize yourself with the concept of Funding with Cryptocurrency Perpetual Derivatives. These can work for you benefit.
