Gravity: Order Depth

______________________________________________________________________

Sources for Order Depth:

MDR: ​https://vcdepth.io/
MDR/BAS: ​https://bidasksum.com/
BAS (has not been working recently):
https://data.bitcoinity.org/markets/bidask_sum/6h/USD/bitmex?bp=5&bu=c&r=minute&t
=m
Custom BAS (pro subscription required): ​https://tensorcharts.com/
A very short-term type of BAS: ​https://www.sk3w.co/liquidity

Helpful Websites:
Liquidations for all Bitmex coins: ​https://app.rek.to/​ & ​https://settle.finance/os
Helpful Order depth/volume alert system: ​https://app.algory.io/app/cryptoscanner
Volume analysis: ​https://www.cryptometer.io/
Lots of data: ​https://www.sk3w.co/bitcoin_futures
Twitter + Stocktwits Sentiment:
https://activetrader.cmegroup.com/Products/EquityIndex?dt=candlestick&b=15M&t=Hist
orical&s=BTC
Get alerts on any site changes: ​https://distill.io/
COT Sentiment: ​https://bitgur.com/chart/interest​ &
https://tradingster.com/cot/futures/fin/133741
Open Interest: ​https://tensorcharts.com/u/bitmexStats​ .

Short-Term Strategy:

1. Confluence between global spot cryptocurrency exchanges and Bitmex: ​Use the
2.5% Global MDR and gauge whether the MDR is positive or negative. Use
the 3% Bitmex BAS and gauge whether the MDR is positive or negative.
When both are pointing in the same direction: this can lead to great
opportunities.

Advantage​ =​ ​You get short-term order depth data on all cryptocurrencies and you
get short-term order depth data on Bitmex’s XBTUSD.
 Disadvantage​ = Any major spoof on an altcoin can throw off the global
cryptocurrency MDR.

2. MDR Thresholds: ​Looking at the MDR of a specific cryptocurrency, take a

look at the maxima and minima that MDR had within that timeframe (1D or
1W). Also take a look at how price responded when that maxima or minima
was reached. After locating these thresholds, take a trade if the MDR
moves past that threshold.

I assigned the threshold here of +18% and -5% as that made up the local minima and
maxima of the 5% MDR. Take a look at the trades that could have been taken if you
had bought whenever MDR topped above 18% and sold when MDR bottom below -5%:
it would have led to great medium-term areas to buy from.

Advantage​ =​ ​You are able to put the MDR into perspective and turn it into a
trading strategy with specific entry/exit points.
Disadvantage​ = Markets change and so does the order depth. The MDR might
not reach your threshold for some time, which would mean that you would have
to assign new thresholds.
 3. Master of spot BTC: ​Look at the BTC MDR on its 5% and 1%. Use the 5%
BTC MDR to gauge how bullish or bearish BTC is at the moment. If the 5%
is bullish, you are going to wait until the 1% BTC MDR turns bullish as well
to buy. If the 5% is bearish, you are going to wait until the 1% BTC MDR
turns bearish as well to sell.

Take a look at the boxed portion below. Notice that the 5% MDR was bullish throughout.
We need a secondary signal to adequately time the market, that is where the 1% MDR
comes in.

Now on the 1% below. Notice that the only time that the 1% MDR turned bullish was at
the market bottom. If you had just followed the 5%, you would have bought at a bad
rate. However, by looking at the 1% MDR, you can time the market far better.
Advantage​ =​ ​You are gauging both medium term (5% range) and short term (1%)
supply/demand. This mix allows you to time when best to enter/exit without
having to rely on any other indicators to tell you exactly when to buy and exactly
when to sell.
Disadvantage​ = You are only looking at spot BTC MDR and not the Bitmex
XBTUSD MDR. Leaving out futures order depth is missing an integral part of the
actual total order depth.
4. Strategy #4,​https://www.sk3w.co/liquidity
a. Just prior to 9:00, price and volume went flat. Bids dropped but spiked
back up, followed by both bids & asks skewing upward as price moved up.
b.

c. When the​ ​bid​ goes to .1% or below = immense buying pressure. ​Blue
(​bid​)​ ​line rising = buying pressure mounting.
d. When the​ offer​ goes to .1% or below = immense selling pressure. ​Red
(​offer​)​ ​line falling = selling pressure mounting.
e. Just prior to the market rally on March 5, we see erratic selling activity and
a drop in market depth.
i. Bids decreased in skew, ​meaning that they moved closer to the
market price.​ Simultaneously, offers increased skew to a relatively
 greater degree, ​meaning sellers’ asking prices moved away
from buyers’ bidding prices, i.e. upward.
ii. These are charts from derivatives, so market makers might have
change quotes on BTC derivatives, causing erratic activity in the
market.

f.
 g.
h. The important point here is that a large spike in skew for offers (red) was
indicative of price moving up. Price moved up around 13:00.

Medium-Term Strategy:
1. Confluence between global spot cryptocurrency exchanges and Bitmex: ​Use the
5% Global MDR and gauge whether the MDR is positive or negative. Use
the 5% Bitmex BAS and gauge whether the MDR is positive or negative.
When both are pointing in the same direction: this can lead to great
opportunities.

The difference between this and the short-term version is that when using a
medium-term strategy: only look to exit your trade when the MDR
completely changes and not just when it flips from negative to positive or
from positive to negative.

Advantage​ =​ ​You get medium-term order depth data on all cryptocurrencies and
you get medium-term order depth data on Bitmex’s XBTUSD.
Disadvantage​ = Any major spoof on an altcoin can throw off the global
cryptocurrency MDR.