Research Summary
The report provides an in-depth analysis of recent crypto volatility trends and major events in Q2 2023. The report discusses the tools developed by the Amberdata team to tag trade direction of aggressors, providing actionable insights to their customers. The report also highlights the development of a unique algorithmic approach to direction detection, which has led to a more nuanced calculation for taker direction. The report concludes with a discussion on the limitations of the model and its potential for future relevance as options gain more prominence.
Actionable Insights
- Understanding Crypto Volatility: The report provides a comprehensive understanding of the crypto volatility landscape, which is still in its infancy. This can be used to develop strategies for trading in crypto volatility.
- Use of Proprietary Tools: Amberdata has developed proprietary tools to tag trade direction of aggressors. These tools can be used to glean subtle information found within option volumes and positioning.
- Algorithmic Approach to Direction Detection: Amberdata has developed a unique algorithmic approach to direction detection, which provides a more nuanced calculation for taker direction. This approach can be used to improve the accuracy of trade direction detection.
- Future Relevance of Options: The report suggests that the relevance of options is anticipated to increase in the future, similar to what occurred in equities. This insight can be used to anticipate future trends in the crypto market.
