Trading CBOE Bitcoin Futures Using Auction Data From Gemini Exchange ethereum btc litecoin


hey everybody its Jonathan yesterday I
put out my first video on Bitcoin I’ll link to the video so you can go watch
that one but I talked about a site called crypto compare again I have you
on crypto compare and what we want to look at is we’re gonna like a coins
Bitcoin markets now Bitcoin is really really fragmented right and sure you can
trade the future right now on the Chicago Board Options Exchange but you
need to realize you have all these different exchanges right and we talked
about that yesterday following the price of all the exchanges as this market gets
more mature you’re gonna have arbitrage yours come into the market and normalize
the price so there’s not going to be such a wide spread between all these
different exchanges it’s gonna happen it happens that’s how markets get more
mature that’s that’s the maturation process that markets go through but what
you need to realize is Gemini Gemini is the exchange that is used to price the
CBOE Bitcoin futures okay so Gemini is gonna be by far the
most important pricing still want to follow everything but Gemini for the
futures traders out there that’s where you want to focus on so now I want to
take you over to the Gemini website Gemini dot-com
this is the Winklevoss is exchange now if I scroll down what you’re gonna want
to look for is auction data because you need to realize the CPI bitcoins futures
are a derivative of Gemini Bitcoin that’s all it is
so if we look at the auction data Gemini runs auctions a few times per day I’m
still learning about this as well what I don’t know is at what time did they
release the auction data whether it’s done right away or whether you need to
be a member I’m still looking into that the difference between the futures and
the cash component so like a gold whew versus gold the difference is going to
be the basis so then we have to see what the basis should be valued at the future
over the cash 12:14 which is today 5:00 in the morning that ran an auction the
final price of the auction was seventeen thousand one hundred and four yesterday
at the close morning so it looks like they do five
o’clock and then three o’clock every day so what you’re gonna need to do if
you’re trading these is keep up this Gemini screen because you’re really
gonna need to know where that underlying traded so now if I take you off there I
just have Bitcoin futures front month and what I did is I quickly went through
the different auction results and so today at 5 a.m. the futures were trading
at about 17 to 50 and then the auction results came out at 17,100 here’s where
the bitcoins trading here’s where the auction Bitcoin auction Bitcoin auction
Bitcoin auction what’s really important to notice is bitcoins trading here the
auctions coming here so if the auctions all the way down here and bitcoins
rallying that could give you a little bit more confidence in the short same
thing the auction a little bit higher I’d rather be short then long the next
auction same if not lower lower and then you can see it really really start to
trending down and catch up what we don’t know right now is where should the basis
be valued at once we can determine where the basis should be value that then we
can know what side we’d want to trade on you’ll notice that the basis is getting
much smaller right here to me that would probably say hey it’s probably bullish
right here and if we get an uptick in the underlying price then we can really
see some follow-through but even if we get the same auction price we might see
this kind of spread which still gives Bitcoin plenty of room to run up this is
what we need to do we need to find some way 2.2 tie it down in the
beginning those who move quick there’s gonna be more opportunity but what you
don’t want to be doing is just using technology fingers buying double bottoms
selling double tops playing for breakouts that’s not going to be enough
you need to get away from that what will be really interesting is when the CMA
futures releases their Bitcoin they’re actually tying their Bitcoin not to
Gemini they’re tying their Bitcoin to something else so there’s gonna be good
trade between those two instruments we’re still gonna have to wait for that
right now we’re just learning we’re playing around with it we’re trying to
find different angles that’s what I’m doing for my entire break I’m gonna
figure out how I’m gonna trade Bitcoin and I’ll keep sharing some videos hope
this helps you have any questions support at active day-trader thanks guys you

2 thoughts on “Trading CBOE Bitcoin Futures Using Auction Data From Gemini Exchange ethereum btc litecoin”

  1. Interesting Jonathan typical of you to find great edges like this 🙂 However, could it really be that far apart that they report the prices to the futures exchange? That really seems unrealistic to me given the number of transactions I see executing on Gemini all day long. There must be someone that knows the exact details and can tell us specifically.

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