At Signals, we want to offer traders the best cryptotrading playground on the market, where they can easily assemble powerful trading strategies. One of the key components are data from order books, which enable users to empower their machine learning models as well as to create sophisticated indicators with positive impact on the performance of “classic” trading strategies based on technical indicators.

The order book contains a list of aggregated LIMIT orders (liquidity MAKERs) around an actual price: SELL LIMITs above the actual price and BUY LIMITs below the actual price. You can see if more traders are placing BUY or SELL orders, and you can even see each modification of LIMIT orders in real time. It gives you brand new information about the market sentiment that you can’t get if you are using just open, high, low, and close prices with, for example, 1/5/15/60 minutes granularity.

Order books only from Poloniex generate more then 40 GB of data every day.

This kind of sentiment indicator has pros and cons, of course. The pros are that you have access to the sentiment of traders, and it’s a huge trading “edge” for your algorithmic strategies. The cons are that you need to have the technology for connection to the order book and process a large amount of data when you are testing your strategies. To put this in perspective, a file containing one day’s worth of the Poloniex order books for all cryptocurrencies captured once per every few seconds are tens GB, which makes it difficult for ordinary traders to be able to take advantage of it. But what if there was a platform which gave traders the access to infrastructure which can handle it, as well as to a vast amount of historical order book data to be able to assemble these kinds of strategies with ease?

As we already announced, we are excited about our new partnership with Foxconn’s data center, SafeDX. This partnership is crucial for collecting and pre-processing huge amounts of data from various crypto-markets in real time.

This source of data empowers classical trading strategy to act even before the market moves a certain way, and it is valuable fuel for machine learning based strategies which are able to find patterns in enormous amounts of data and use it as an advantage in trading. You can recognize and analyze important support/resistance levels, big orders realized by big players, buyers and sellers imbalance and a lot of other patterns.

Do you have questions about these indicators?

We’re here to help! Reach out to using the live chat feature on the Signals website or via email at support@signals.network.