Intervarsity Bitcoin Trading Workshop

Introduction to BitMex Platform

About BitMex

BitMex is a cryptocurrency and derivatives trading platform – offers investor access to global financial markets using only Bitcoin

Bitcoin Perpetual Swap Contract

Features of perpetual contract

Bitcoin perpetual contract is a derivative product that is similar to a traditional futures contract in how it trades, but has a few differing specifications

  • Trades like spots by tracking the underlying index (i.e. Bitcoin) price closely
  • It does not have an expiry or settlement date – traders can hold a position for as long as they like
  • Funding: periodic payments exchanged between the buyer and seller every 8 hours.
    • If the rate quoted is positive, then longs will pay and shorts will receive the rate; vice versa
    • You will only pay or receive funding if you hold a position at the Funding Timestamp
    • Funding Timestamp: 6:00 AEST, 14:00 AEST, 22:00 AEST

Contract size, leverage, margin and available balance

Types of Orders

Market orders

Limit orders

Stop orders

Take profit orders

2019 Intervarsity Bitcoin Trading Competition


  1. The competition runs for 1 week and will commence on Monday 4th of March at 9:00 and conclude on Monday 11th of March 9:00
  2. Each account will be funded with 0.001XBT
  3. The only product available to trade in this competition is XBTUSD – Bitcoin Perpetual Swap Contract
  4. 20 trades must be made in order to be eligible for prize money – opening and closing of the same position will be count as 1 trade
  5. Maximum leverage will be limited to 10x
  6. Do not setup Google Authenticator on the BitMex account or any other 2 Factor Authentication – this will allow us to monitor your performance

Fundamental Analysis


  • Fundamental analysis is a method of evaluating an asset’s intrinsic value by examining any related economic of financial factors
  • Such as
    • Macroeconomic factors (overall economy and industry)
    • Microeconomic factors (financial conditions and company management)
  • Example: Apple Shares (AAPL)
    • Macroeconomics: Economies of major countries (US, China, Europe), US-China trade relations, other competitors (Huawei), demand for smartphones, laptops, tablets (increasing or decreasing)
    • Microeconomics: iPhone sales, Yearly revenues, expenses, growth etc.
  • End goal: To produce a numerical value that an investor can compare with its current price, to determine whether the asset is under/over valued.


  • Unlike a company, Bitcoin does not own any assets, make products to earn revenue, no balance sheet
  • Fundamental Analysis includes:
    • What people are willing to pay for (Supply and Demand)
    • Public adoption (businesses accepting Bitcoin as a form of payment)
    • Number of transactions
    • If people see it as a store of value
    • Countries banning its use (eg. 2018 China blocked all access to cryptocurrency exchanges and ICO websites)
    • Comments from important individuals (eg. Jamie Dimon)
    • Major news relating to Bitcoin or cryptocurrencies in general


Technical Analysis


Moving Average Convergence Divergence

  • Pronounced as Mac-Dee
  • Is a trend-following indicator
  • Is a “lagging” indicator

The Main Components

There are 4 main components of the MACD indicator

  • MACD line (blue line)
  • Signal line (orange line)
  • MACD histogram which is the difference between the MACD line and Signal line
  • Base line (the 0 level, line dividing the red and green sections of the histogram

Identifying Trends

  • When both MACD and Signal lines are above the zero level then you can consider that we are in a bullish trend
  • Vice versa

Identifying Trends Example

Buy and Sell Signals

Buy signal

  • Bullish crossover: When MACD line (blue) crosses above the Signal line (orange)

Sell signal

  • Bearish crossover: When MACD line (blue) crosses below the Signal line (orange)

Buy and Sell Signals Example

Combination Examples


What do you think?

Answer at bottom of page


Relative Strength Index

  • Measures the magnitude of recent price changes to find overbought or oversold conditions
  • Is an oscillator (a line graph) that moves between the range of 0 to 100
  • Overbought: Potential time for pullback down or reversal
  • Oversold: Potential time for pullback up or reversal
  • Default settings
    • Overbought at 70
    • Oversold at 30
    • 14 days
  • Leading indicator

Buy and Sell Signals

Reversal Signals

What do you think?

Answer at bottom of page

Other Technical Indicators

  • Support and Resistance Zones
  • Simple Moving Average (SMA)
  • Exponential Moving Average (EMA)
  • Bollinger Bands
  • Ichimoku Clouds

Answer to MACD what do you think?

Answer to RSI what do you think?


UNSW Forex Society is run by a group of enthusiastic students who are interested in the forex markets. We strive to present information up to a high standard, and ensure that our information is cross-checked from multiple sources. However, we are not responsible for any losses incurred during your trading.