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₿ Liquidation Cascades Strategy Backtest — Bitcoin

90-day quantitative backtest of the Liquidation Cascades signal for Bitcoin (BTC). Performance metrics, trade statistics, and risk analysis. Last updated: March 12, 2026.

Performance Summary

2.19
Sharpe Ratio
-19%
Max Drawdown
52%
Win Rate
219
Total Trades
2.49
Profit Factor
0.29%
Avg Trade

Current Signal State </> API
# Current Liquidation Cascades signal for BTC
$ curl command:
curl -H "X-API-Key: YOUR_KEY" https://algotick.dev/v1/signals/liquidations?coin=BTC
Endpoint: /v1/signals/liquidations?coin=BTC
Get your API key →

Current Value
0.0000
Signal
quiet
Indicator
Liquidation Cascades

Trade Statistics

MetricValue
Best Trade+7.9%
Worst Trade-3.4%
Average Trade+0.29%
Win Rate52%
Profit Factor2.49
Total Trades (90d)219
Average Holding Period4h
Max Consecutive Wins6
Max Consecutive Losses6

Methodology

Liquidation Cascades: Liquidation cascade analysis identifies price levels where clusters of leveraged positions would be force-closed. When price approaches these levels, the resulting cascade of liquidations can create violent, predictable price moves. The strategy positions ahead of anticipated cascade zones.

Backtest Parameters:

  • Period: 90 days of 1-minute data from Hyperliquid
  • Signal: liquidation alerts from the Algo Tick API
  • Position sizing: Fixed 1x leverage, no compounding
  • Execution: Market orders at next bar open, 0.05% slippage + 0.02% fees
  • Risk: Stop-loss at 2x ATR, take-profit at 3x ATR

Reproduce This Backtest

Don't run this backtest locally — just query our analytics endpoint:

# Fetch historical signal data for backtesting
import requests

API_KEY = "YOUR_API_KEY"
BASE = "https://algotick.dev"

# Get current Liquidation Cascades signal
resp = requests.get(
    f"{BASE}/v1/signals/liquidations",
    params={"coin": "BTC", "api_key": API_KEY}
)
signal = resp.json()
print(signal)

# Query historical data for backtesting
hist = requests.get(
    f"{BASE}/v3/analytics/query",
    params={
        "api_key": API_KEY,
        "metric": "liquidation alerts",
        "coin": "BTC",
        "hours": 2160  # 90 days
    }
)
data = hist.json()

Our server-side Liquidation Cascades signal generated a 2.2 Sharpe on BTC over the last 90 days

Don't build the infrastructure. Just query the API and focus on your alpha.

Get API Key →

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