Bitcoin Trades 24/7. But Maybe the Market Makers Don't.

[hormozi]

I never added a session filter to my strategy.

The strategy is based on a personal methodology that tries to identify and follow market-maker moves.

Over the last 4 months it generated 61 trades, with approximately +30% return and 1.4% max drawdown.

What caught my attention is how differently those trades are distributed across trading sessions

New York: 29 trades — 83% win rate — 14.54% of total profit
Tokyo: 18 trades — 67% win rate — 10.35%
London: 8 trades — 88% win rate — 8.75%
Sydney: 3 trades — 33% win rate — -1.26%


NY: +0.50% / trade
Tokyo: +0.58% / trade
London: +1.09% / trade
Sydney: -0.42% / trade


I didn't optimize the strategy for any of these sessions beforehand.

So this raises an interesting question:

Does Bitcoin actually behave differently across trading sessions?

And more specifically:

Could the difference in strategy performance be related to changes in liquidity, volatility and market-maker activity across sessions?

I'm interested in hearing how others interpret this.

https://imgur.com/a/IEPXckY

[BitMaxz]

So this raises an interesting question:

Does Bitcoin actually behave differently across trading sessions?

And more specifically:

Could the difference in strategy performance be related to changes in liquidity, volatility and market-maker activity across sessions?

I'm interested in hearing how others interpret this.

The NY session seems to behave more than the other sessions.
But the volatility happens only every NY open session, and sometimes 2 hours before the volume increase during that time, it also happens when the NY session closes.

That is currently what I noticed for the NY session because I monitor them every NY opening session.

The London session seems right now; it is rare to see high volatility. 

Asia or Tokyo session I don't monitor them; I mostly trade between London and NY sessions.

[Floczy]

To me I see the real movement during the overlap of NY and LONDON session

Every day I wake up, and I wait for my time



I removed Tokyo and Sydney session cause I don't use them and I need a clean chart..

Volatility seems to be higher in a regulated manner during this overlap session, I make good analysis before the time and find opportunities during the session.

Altho everyone has the way they trade and have to respect their system some do not really need a volatile market like I do.

[BitMaxz]

To me I see the real movement during the overlap of NY and LONDON session

Every day I wake up, and I wait for my time

[img ~snip~]

I removed Tokyo and Sydney session cause I don't use them and I need a clean chart..

Volatility seems to be higher in a regulated manner during this overlap session, I make good analysis before the time and find opportunities during the session.

Altho everyone has the way they trade and have to respect their system some do not really need a volatile market like I do.

What color is the NY session from your chart? Or what indicator do you use? The NY and London sessions are different on crypto. I think there's an overlap; usually I see the big liquidity and volume 2 hours after opening.

About the volatility in the market, we always seek a volatile market. I don't trade on the consolidation phase, just like you do. 
Volatility is what we need to be profitable or likely a trending market, unlike calm or low-volatility markets.

However, I saw people trading in a low-volatility market like AUD/NZD, but I heard a lot of these people who use bots like EA suddenly losses of more than 60% from calm volatile to trending markets. If you know Bibiano, he is one of the affected one.

I know they have a stable profit with calm markets; actually, you just need to look for support and resistance from previous data that you can use for entry, and using RSI oversold and overbought areas is your signal for entries.

I was trying them out; it only happens on forex and rarely in crypto. Remember how volatile crypto is.

[joniboini]

I wonder how market maker actually do their job. I can't imagine a big firm have to manually traed/swap across pairs without using a bot or something similar. I guess they won't let the bot run 24/7 since they can't monitor it all the time? If something terrible happened and they can't respond fast enough, they'll get complaints from exchanges and traders in general. Another possibility is they monitor the volume on each exchanges, and decide to support the market when the depth feel imbalanced. CMIIW.

[Alphakilo]

The strategy shown is just an example of how global banks and institutions trade Bitcoin because it is the heavy institutional volume that shows clearly how high liquidity moves, that is for the more active sessions like New York and London, while the more quieter sessions creates the noise that cause failure in strategy.
I can only advice you stop trading the thin sessions and focus instead on the London and New York markets to scale up your position sizes instead of trying to change your setup.

[Nathrixxx]

The strategy shown is just an example of how global banks and institutions trade Bitcoin because it is the heavy institutional volume that shows clearly how high liquidity moves, that is for the more active sessions like New York and London, while the more quieter sessions creates the noise that cause failure in strategy.
I can only advice you stop trading the thin sessions and focus instead on the London and New York markets to scale up your position sizes instead of trying to change your setup.

There is nothing wrong with the setup as you have suggested already, but many have to be more focus on the timing zone to when they perform their trades, same also apply with the strategy day are using and you have given the nice and most recommended one for them to consider, but still yet, some people are yet to understand that the global trade market still depend on the drive from both New York and London time zones.

[sergiorus]

I mean it's not a secret that BTC trades differently in different sessions. Particularly during NY session.

But that's not necessarily due to the market makers. More likely due to the increased traffic of traders. USA is by far the largest market of cryptocurrency traders in the world so obviously that would affect the trading activity.