, shortened for readability.
...
Newbium WOB previewProudly presenting a new tool, which -e.g. for
Bitcoin-
is aggregating all available
orderbook data from
52 markets in 13 currencies on 27 exchanges.
(click for larger)We call the approach
WOB = "world order book".
Already working & useful, within our Newbium beta (preview).
[also see] WOB Explanations:
pt1 and
pt2 ...
[answer about total amount of worldwide BTC sell orders] ... When the totals were converging
(i.e. adding even more exchanges did little to influence the aggregated outcomes) ...
I was surprised to see the total order volume ... to be that small. Tiny, literally.
Worldwide BTC sell orders (the part that is publicly visible, in 27 exchanges) have a total of ~25 mio USD.
We are seeing only 1/290 of all Bitcoin in existence in the sell orderbooks ...
Obvious explanations: People do keep their coins outside the exchanges, good.
Some exchanges are truncating the depth to e.g. 500 or 2000 order around the current price, bad.
And yes, orders can be hidden / conditioned - and then no one is able to count them in.
Missing data is sad, but ubiquitous. Still, many people do aggregate datasets with missing data,
all over science. ... I see my highest goal to provide reliable analysis, so I am worried about such questions
[quality of input data] myself. ... [however] The incentive for an exchange to report a false orderbook ...
I don't yet see how they would profit from that. But yes, it might happen.
There are three effects which mitigate the problem:
* Exchanges can not profit financially from reporting fake orderbooks. ...
* A law of large numbers - the more exchanges we query (now 30+),
the less important the black sheep will be in our aggregation.
* The bear scammers and the bull scammers ... can cancel each other out.
And most importantly, and as we will never be able to sample the whole totality:
Do not mainly look at the absolute numbers
- but look at the ratio of green(buybook) and red(sellbook) column.
[i.e. height difference]
Even if our new metrics is not "truth" itself - but only a good proxy for the truth
- in cross-comparison, it really helps to uncover reality. Examples:
balanced
https://twitter.com/altsheets/status/735506529466646528 sell pressure
https://twitter.com/newbiumcoin/status/733508871747051520 buy pressure
https://twitter.com/altsheets/status/735817783666200576But of course: If an exchange will be reported to be providing fake data,
then we'll simply cut them out of our data collection. Forever. Good point,
thanks for the hint. And please alert us when you hear about such API data fraud.
Sunny greetings
, and edited for readability.
