Bitcoin / US Dollar Perpetual Inverse Swap ContractBitMEX
Description
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This indicator was made to streamline finding the optimal entry to cash and carry/hedge on a futures contract when margin trading.
Explanation of the indicator: This indicator has built-in alert conditions that you can use to give you email alerts, in-browser sound alerts, or SMS alerts. These alerts are based upon futures prices being in contango or backwardation. From top to bottom, the grid shows XBTU18, XBTZ18, OkEx's Quarterlies (OKCOIN:BTCUSD3M), and CME's futures.
Red: Futures are trading above your defined range (default 1%) of spot
Maroon: Futures are trading above twice your defined range of spot
Lime: Futures are trading below your defined range (default 1%) of spot
Green: Futures are trading below twice your defined range of spot
What's configurable:
% to trigger
Grid size
Bar color toggle
Label toggle
Spot/index source (Bitfinex's BTCUSD, BitMEX's XBTUSD, and BitMEX's XBT Index are available)
Pricing: Currently this standalone indicator is 0.007 BTC for lifetime use.
Example of use: On 4 May 2018, BitMEX's XBTU18 was trading >2% above perpetual swap. The grid alerts signaled that and if one were long on bitcoin spot on any exchange, then it would have been a good idea to hedge a short on XBTU18. Eventually from there the premium gap was closed while bitcoin fell.
Here is the indicator shown with bar coloring and labels.