In early December, Bitcoin surged past its historical high of the past year, reaching a milestone of $43,000. Naturally, this sparked increased activity in the trading market, with both seasoned professionals and newcomers engaging more actively in asset trading. Simultaneously, significant liquidations of short orders took place in the sector. On Tuesday, December 5, according to Coinglass data, traders incurred substantial losses following massive liquidations on Binance, OKX, Bybit, and Huobi exchanges. Within a few hours, BTC orders totaling $108.93 million and ETH orders amounting to $33.74 million were liquidated. Such losses could have been avoided if traders possessed a deeper understanding of the market and approached trading more consciously, as affirmed by the 1ex Trading Board team.
The ecosystem’s developers have crafted products designed to analyze the market using leading-edge data, enabling more precise price movement predictions. To delve into the art of trading profitably without colossal losses, we spoke with the developers at 1ex Trading Board.
Remove Japanese candlesticks from the chart.
Most modern traders still use candlestick charts and technical analysis for market analysis. While these tools can provide a rough idea of market movement, they certainly do not assist in predicting short-term price movements, for example, over a few hours or days. However, it is precisely this data that is crucial for constructing an effective trading strategy, especially if you engage in news trading or scalping.
Existing analysis methods are based on historical data, considering how a coin behaved several weeks, months, or even years ago. Subsequently, employing the cyclical principle, the trader attempts to forecast the market’s direction: up or down. Our analytical service, AI News, operates fundamentally differently. We take into account the current market situation and only then predict price movements,” says CEO and Co-founder of 1ex Trading Board, Dmitry Litvinov.
The AI News platform analyzes the market using more than 16 parameters, including media news directly influencing coin price movements, behavior of limit orders in order books, cyclical charts, trader activity, and much more.
“Essentially, we assess not the past market movement, but the present. For instance, if we observe active media coverage on Bitcoin and traders placing buy orders right now, it can be understood that the asset’s value will likely rise. Subsequently, the algorithms autonomously identify and present you with the optimal entry and exit points for the trade,” explains Dmitry Litvinov.
Furthermore, utilizing AI News will assist in gaining a deeper understanding of events unfolding in the market, thereby enabling a more precise identification of the most favorable times for executing trades.
Invest in the right assets.
In addition to the analytical service AI News, the company also offers effective tools for investors.
“Today, more than 2 million coins are on the market. For both experienced and novice investors, it can be challenging to understand which asset to invest in, which coins are overbought, and which are undervalued,” says Dmitry Litvinov.
The GemFinder feature allows users to analyze coins, assess the number of buy and sell orders, and explore the activity of issuing companies. As a result, users gain a comprehensive view of each asset and can make a well-informed investment decision, avoiding impulsive choices.
“When we tested our service, it highlighted SOL token as an undervalued but promising asset. I decided to give it a try and bought the token at its lows. Over the next few weeks, the coin’s value increased significantly. This personal experience confirmed that our service works accurately and provides very reliable data,” shares Dmitry Litvinov.
The most unique tool, however, is the trade assistant, which is a self-learning neural network that closely monitors a trader’s activity, memorizing their actions and reactions to different market situations.
“The neural network creates a specific dataset consisting of parameters based on a trader’s past actions and the results they obtained. For instance, if a trader opened numerous trades, and the majority of them were successful, the neural network fully reads and memorizes the conditions under which these trades were successful. On the other hand, if a trader experienced losses, the neural network remembers these actions as erroneous. Thus, an avatar of the trader’s behavior is formed,” explains Dmitry Litvinov.
Subsequently, the neural network is capable of autonomously replicating a trader’s actions if the market conditions resemble previous ones. Conversely, it can block a trader’s activity if the user’s behavior significantly deviates.
“Sometimes, a trader may enter a state of frenzy, making impulsive decisions, excessively risking, constantly increasing leverage, even when market conditions are unfavorable. In such a case, the neural network can warn about the risks or even block operations to prevent potential losses. This represents a new level of risk management,” shares the company’s CEO about this innovative development.
Algorithmic trading at a new level.
Despite a range of fundamentally new tools, 1ex Trading Board also offers straightforward and useful services, such as algorithmic trading or trading bots.
“Currently, more than 6,000 people use our trading bots. They are available on major cryptocurrency exchanges, such as Binance, Bitget, ByBit, and others. However, we plan to expand the range of trading bots for stock exchanges so that our clients can apply them across different markets,” says Dmitry Litvinov.
Information on the effectiveness of the robots will also be collected on a single board, allowing users to track the performance of services in one place, which is very convenient.
“Our board is a unique tool. It will accumulate and store all information about a trader’s work, whether it’s the crypto or stock markets. Users will be able to assess their performance, adjust strategies, and manage their finances with just a few clicks,” explains Dmitry Litvinov.