Tutorial 3: Using the Whale Tracker to Follow Market Trends

The Whale Tracker on BITWHALE is a powerful tool that lets you monitor the activities of large-scale wallets (known as "whales") on Hyperliquid, a decentralized exchange (DEX). By tracking their trades,you can gain insights into market trends and make informed trading decisions. This tutorial will explain how to use the Whale Tracker, interpret the data, and incorporate whale movements into your trading strategy.

Overview of the Whale Tracker Feature and Its Benefits

• What It Does: The Whale Tracker displays the activities of top wallets on Hyperliquid, showing their account value, margin usage, total position value, and unrealized profit/loss (PnL).
• Benefits:  
  • Identify market trends by observing what the biggest players are doing.  
  • Spot potential opportunities based on whale activity (e.g., large positions often signal confidence in a price movement).  
  • Make data-driven decisions by analyzing the performance of successful traders.

How to Identify "Top Whales" in the Dashboard

1. Access the Whale Tracker  
   • Log in to BITWHALE and navigate to the “Whale Tracker” section via the sidebar or dashboard.  
   • You’ll see a table labeled “Top Whales,” as shown in the screenshot.

1. Understand the Data (Referring to the Screenshot)  
   • Wallet: The wallet address of the whale (e.g., 0x20c2d95a3dfca9e9ad12794d5fa6fad990da44f5).  
   • Account Value: The total value of the whale’s account (e.g., $87.95M for the top whale).  
   • Margin Used: The amount of margin the whale is using for leveraged positions (e.g., $4.89M).  
   • Total Position Value: The value of all open positions (e.g., $122.37M).  
   • Total Unrealized PnL: The profit or loss on open positions (e.g., +$52.40M, shown in green for profit).  
   • Observation: Most whales in the screenshot have significant unrealized profits (e.g., +$21.47M, +$13.1M), indicating they’re in winning positions, which can signal bullish market sentiment.
2. Analyze Trends  
   • Look for whales with high unrealized PnL and large position values—these are often indicators of confidence in their trades.  
   • If multiple whales are showing profits on similar assets, it might suggest a broader market trend (e.g., a potential price increase).

Tutorial on Incorporating Whale Movements into Your Trading Strategy

1. Spot High-Conviction Trades  
   • Focus on whales with large position values and positive PnL. For example, the top whale has $$122.37M
     in positions and a +$52.40M PnL, suggesting they’re making successful trades.  
   • Use this as a signal to investigate the assets they’re trading (you can often see their open positions in other BITWHALE sections, like Hot Positions).
2. Combine with Market Sentiment  
   • The “Hot Positions” screenshot shows a Market Sentiment indicator at -56% (bearish). However, many whales have positive PnL, which might indicate they’re betting against the broader sentiment—a contrarian signal to watch.

Examples of Successful Trades Inspired by Whale Activity

• Example 1: The whale with wallet (Wallet address) has a +$52.40M unrealized profit. If you notice they’re heavily invested in a specific asset (e.g., SOL, as seen in Hot Positions), you might consider taking a similar position, expecting a price increase.  
• Example 2: A whale with $32.38M in positions (Wallet address) shows an $8.28M profit. This could indicate 
  a strong trend in their chosen asset, prompting you to research and potentially follow their lead.

The Whale Tracker gives you a window into the moves of Hyperliquid’s biggest players. To take action on their trades, explore the “Hot Positions” (https://bitwhale.freshdesk.com/support/solutions/articles/501000172773-tutorial-4-copy-trader-replicating-successful-strategies) section to see specific trades you can copy with one click.