An overview of the trading activities on the cryptomarkets. Studies on traded volumes, supply and demand situations, as well as periodic technical analysis of the most important crypto-currencies and indices, including the perspective of professional Traders.
Technical Analysis
Good Morning!
Good ol' pairs trading. How often do we hear that "cryptos are extremely correlated!" or that "chen bitcoin goes up, everything goes up" ... and vice versa? But is this always the case?
Correlation between SUSHI and XRP
Traditionally, most investors view their investments and trades in terms of absolute returns. In other words, if you buy something, and it increases in value, there is a chance that you will make a profit. And if it decreases in value, there is a risk of loss. Let's have a look at two specific coins: SushiSwap (SUSHI) and Ripple (XRP).
Nice, right? Under the percentage view, they seem to move in locksteps, but with some deviations. When two-time series are cointegrated, and the spread between the two deviates “too much” from its long-run value, we can bet on a reversal.
That is the answer: buy when cheap and sell when expensive and then wait for the convergence. After some calibration, testing, and math, we entered into the following trade: sold SUSHI and bought XRP. Let’s see what happens!
All intellectual property, proprietary and other rights and interests in this publication and the subject matter hereof are owned by Crypto Broker AG including, without limitation, all registered design, copyright, trademark and service mark rights.
Disclaimer
This publication provided by Crypto Broker AG, a corporate entity registered under Swiss law, is published for information purposes only. This publication shall not constitute any investment advice respectively does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction. This publication is not intended for solicitation purposes but only for use as general information. All descriptions, examples and calculations contained in this publication are for illustrative purposes only. While reasonable care has been taken in the preparation of this publication to provide details that are accurate and not misleading at the time of publication, Crypto Broker AG (a) does not make any representations or warranties regarding the information contained herein, whether express or implied, including without limitation any implied warranty of merchantability or fitness for a particular purpose or any warranty with respect to the accuracy, correctness, quality, completeness or timeliness of such information, and (b) shall not be responsible or liable for any third party’s use of any information contained herein under any circumstances, including, without limitation, in connection with actual trading or otherwise or for any errors or omissions contained in this publication.
Risk disclosure
Investments in virtual currencies are high-risk investments with the risk of total loss of the investment and you should not invest in virtual currencies unless you understand and can bear the risks involved with such investments. No information provided in this publication shall constitute investment advice. Crypto Broker AG excludes its liability for any losses arising from the use of, or reliance on, information provided in this publication.
