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APEX:E3 Labs - Using A.I. To help Traders: Binance Futures Insights
APEX:E3 Labs - Using A.I. To help Traders: Binance Futures Insights
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Written by APEXE3HQ
Updated over a week ago

We are building sophisticated tools for analyzing crypto spot and derivatives markets with familiar trading views.

Our new analytic enables the real-time discovery of significant support/resistance levels, better informing your trading strategy.

Using a contemporary clustering extraction method we have vastly improved the accuracy of the identification of support/resistance lines. These lines are valuable as they help traders know when to enter and exit a market.

We are testing a new analytic which uses the ‘K-means clustering’ extraction method, an unsupervised machine learning algorithm, to detect significant support/resistance levels. We believe our new analytic will make it easier for traders to know where, in the market cycle, they are positioned and visualise how close a market is to the support/resistance levels.

Using an in-memory data structure has enhanced our support/resistance line analytics further, as it provides faster, real-time insights into changes in the market. Combining our machine learning algorithm which more accurately identifies support/resistance levels, with the in-memory data structure — provides users with a robust, reliable and real-time analytic.

How it works

Most traders understand Price change and Support/Resistance levels. When Price moves within 1–2% of these levels it typically results in significant intra-minute price changes. This is because many other traders are tracking these levels and have bids/limit orders set close to the 1–2% band. As a result, near these price levels there is a significant amount of volatility and small changes in price may actually have significant impacts on the market.

Not all markets are as correlated to BTC as you think

Although most crypto derivatives markets are highly correlated to the BTCUSD perpetual SWAP, markets respect a variety of factors which define support/resistance levels. Other factors could include trader anticipation, fundamental changes to a project/asset and real-world events/partnerships. Identifying these other factors and trading around them can result in positive ROE(Return on Equity).

Trading with the analytic

In this example, our new analytic has identified that ETCUSDT is very close to a significant support level (0.62% above) and has just moved up 0.3304%.

ETCUSDT approach a Support Level (0.62% above it) at 5.132

The graph below provides a visual representation of our analytic, showing where the market is trading, i.e. just about to hit the support line. Buying in at this position in anticipation of a price uptick could present a profitable trading opportunity.

ETCUSDT rebounding from a Significant Support Level on the 15min time-frame

Indeed, 6 hours later, the price rose from 5.132 to 5.215, a 1.6% price rise visualised on the graph below.

Feel free to contact @APEXE3HQ on Twitter for a demonstration.

Try our platform HERE to access real-time digital asset analytics, related news and social media content.

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