TradigView is a really powerful tool. You can find live quotes, stock charts, and expert trading ideas. It has other exciting futures where you can create your formulas. So in this tutorial, I will teach you how to make a unique formula and add it to your watch list for your Cash and Carry crypto trade.
An essential thing in the Cash and Carry trade is to know how much we can make of this trade. To do that, you can take the Futures contract price and deduct it from the Spot price. Let’s say Junes Futures Bitcoins price is $55,000, and the Spot markets price of the Bitcoin is $52,000. So we have to take Bitcoins Futures price $55,000 and deduct $52,000 from the Bitcoins Spot market price. By this action, we find out that we have $3,000 Premium for Cash and Carry trade.
Futures Contract Price - Spot Market Price = Cash and Carry Premium
$55,000 - $52,000 = $3,000 By doing this action, we find out Premium for Cash and Carry trade. So when you need this number, open your calculator and do this mathematical operation.
If you are trading on one platform and with one cryptocurrency pair, it is not a problem to do this operation. But if you are willing to trade on different platforms and with other pairs, this action may take too much time.
To solve this problem, we can use TradingView. TradingView is a potent online tool that lets you create formulas and check live movements of the Premium for Cash and Carry Trade.
I will use a Binance crypto exchange platform and September’s Bitcoin Futures contract as an example. But you can modify this formula and use it for any exchange and cryptocurrency you want.
- Go to TradingView.com and select Chart.
- Press on Symbol Search.
- In the right corner, press on Select exchange.
- Type Binance in the search field.
- Select Binance exchange (by doing that, we will see only crypto pairs from the Binance exchange)
- Type in the search field: BTC and select “BTCU2021 BTC FUTURES CONTRACT (SEPTEMBER 2021)”
- Go back to the symbol search.
- When you open a symbol search, you should find already typed: BTCU2021 – this a symbol on the Binance platform for the September Bitcoins Futures contract.
- Before this symbol, add BINANCE: all symbol should look like this BINANCE:BTCU2021
- After BINANCE:BTCU2021 symbol type – (minus sign)
- After – (minus sign), type: BTCUSDT and select “BITCOIN – TETHERUS: pair.
- Press enter
BINANCE:BTCU2021-BINANCE:BTCUSDT Here we go, we have created our first formula on TradingView. And here is a video how to do that:
This formula will help you check the gap between Bitcoins Futures contract price and the Bitcoins price on the spot market on the Binance platform. But on the Binance platform, there are much more cryptocurrencies than Bitcoin. And some of them also have their own futures contracts. So we can use this formula and find a Premium gap for Ethereum, Polkadot, Binance Coin, and others.
But as all cryptocurrencies have different prices, and we have the premium expressed in Dollars ($). This is not the best measurement for the crypto Cash And Carry trade. We need to make a formula to show a gap between the futures price and spot markets price expressed in percentages (%) to solve this problem.
(Futures Market Price - Spot Market Price) / Spot Market Price * 100 This formula you can also use with any exchange platform and any cryptocurrency. Let’s use Ethereum as an example for this time. And use this formula to find a Premium gap between Ethereum September Futures Contract and Spot price on the Okex exchange.
- Go to TradingView.com and select Chart.
- Press on Symbol search
- In the right corner, press on Select exchange.
- Type Okex in the search field
- Select Okex exchange (by doing that, we will see only crypto pairs from the Okex exchange)
- Type in the search field: BTCUSD and select “BTCUSDT6M FUTURES CONTRACT 24 SEPT 2021”
- Go back to the Symbol search.
- When you open a symbol search, you should find already typed: BTCUSDT6M – this a symbol on the Okex platform for the September Bitcoins Futures contract.
- Before this symbol, add OKEX: all symbol should look like this OKEX:BTCUSDT6M
- After OKEX:BTCUSDT6M symbol type – (minus sign)
- After – (minus sign) type: OKEX:BTCUSDT and select “BITCOIN / TETHERUS” pair.
- Press enter
- Press on Symbol search
- And put all formula to Parentheses () – should look like this: (OKEX:BTCUSD6M-OKEX:BTCUSDT)
- After type, add the rest of the code /OKEX:BTCUSDT*100 as it needs to be divided from Spot Market Price and multiplied by 100.
(OKEX:BTCUSD6M-OKEX:BTCUSDT)/OKEX:BTCUSDT*100 And here is a video how to do that:
We have learned to write formulas, and now we can make a watchlist on TradingView. To add your made formula to your watchlist, press the right mouse button on the graph and then “Add to Watchlist (OKEX:BTCUSD6M-OKEX:BTCUSDT)/OKEX:BTCUSDT*100”
Here you go, you are all set. Now you a PRO Watchlist creator on TradingView 🙂
If you do not have time to make those formulas by yourself, I have done it for you.
To get the list, go to the Contribee account and become a member. By doing that, you will get to access this article, where everything will be explained.
Where For €2, you will get:
150 Formulas ready to be added on TradingView.
BI-Weekly updates if you decide to keep the membership.
Become a member on Contribee to get the list.
Peace, MadMantas