Hippo: working with limit orders

Tool description and setup

Hippo is a search algorithm for large limit orders in the order book. Such orders are of great interest when they have enough volume for holding the price or for psychological intimidation.

By the way, “large” is a subjective concept, so we are not looking for a “large” limit, but the one that is the largest relative to what usually happens on that asset.

The challenge for Hippo is to identify not just a large limit, but an abnormal limit.

So how is it possible to find a larger-than-usual limit among hundreds or thousands of pairs? It is physically impossible for a human to do that because you cannot keep track of thousands of pairs and memorize the size of the limits at the same time. That is why we have created an algorithm that makes it possible since it has "all the moves written down".

The tool consists of a table with assets and lines on a cluster chart indicating places with abnormal limits.

In the picture below you can see the structure of the table.

In the settings, you can add or hide columns that will be displayed in the table:

• Exchange where the limit was detected
• Uniform ticker
• Zone where the limit order appeared
• Distance in percents to the best price
• Price of the best Bid/Ask order
• Volume of the limit order in coins
• Time of data detection in the current line

The data in the table can be filtered through the Filter button. There are filters “From” and “To” for numerical indicators.

When you click the Unif. ticker button in the table in the cluster chart window, the data for the selected pair will be displayed. The lines that appear symbolize limit orders. Red lines are Asks, and green lines are Bids.

Hippo using

Here’s an example from our trading experience.

In the cluster chart below, we can see how the price was moving in a narrow range, and after its slight decline, sellers began to place large limit sell orders. Afterward, the price continued a more active decline.

Now let’s look at an example of using Hippo for long trades.

The green zones on the chart are not clusters, they are so close to the buy limits. By the way, in the BAS search engine you can also notice it.

This was followed by sharp market buying.

Hippo can be used in any market. In case of active growth – we are looking for limit orders to buy, in case of decline – to sell.

You can find more information in the online university or use our mentoring service and better understand the Hippo search on your own with our trusted author Resonance.