Re:Algorithmic Trading: A Practitioner’s Guide
by alienalp on Sunday February 12, 2023 @09:19PM
(#34769437)
By the relative weakness do you just mean price drop?
And how can SPY be hedge considering bitcoins incomparable volatility. Are position sizes proportional to volatility or something like that?
[ Parent
| on HN ]
Re:Algorithmic Trading: A Practitioner’s Guide
by paulpauper on Sunday February 12, 2023 @11:47PM
(#34770247)
The US market opens at 6:30 AM PST. In the 30 minutes before the market open, BTC and the SPY/QQQ futures tend to be highly correlated, but let's say NQ (which is a futures contract that tracks the Nasdaq) rises .5% but BTC only rises .25%, then this would be relative weakness on the part of BTC. The trade would be to short BTC and go long QQQ in equal size.