Selecting Intraday Crypto Assets by Volume and Price Movement
Summary
This article outlines a screening process for narrowing a large cryptocurrency universe to candidates for intraday trading. It uses asset ranking data to examine trading volume as a liquidity proxy, hourly price change as a measure of recent volatility, and weekly change to distinguish relatively active assets. The example filter also excludes higher-priced coins to favor assets that may be easier to trade with a limited budget. It then uses exchange pair listings to determine whether candidates can be traded directly against US dollars or would require a Bitcoin pair.
The approach is a preliminary universe selection step, not a complete trading strategy. The thresholds are described as rough choices, and the article offers no backtest or evidence that the resulting assets predictably outperform. It recommends further inspection of price charts and suggests VWAP or TWAP as possible tools for evaluating execution prices or narrowing choices. Volume may not fully capture liquidity, and the screening criteria may need to change with trading goals and market conditions.
Key ideas
- Trading candidates are screened for both liquidity and price movement before strategy rules are applied.
- The example uses trading volume as a liquidity proxy and hourly and weekly price changes to identify active assets.
- A low price threshold is included to accommodate smaller budgets, though it does not establish better trading value.
- Pair listings help identify whether assets can be purchased directly with dollars or require a Bitcoin pair.
- The screening rules are exploratory and are not supported by reported backtest results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.