🌊
Liquidation Cascade Fade
Fade the extreme price moves caused by cascading liquidations
Live Suitability Check
SUITABLE
High volatility regime — cascades more likely
Regime: sell
Vol: high
Composite: -0.229
Funding: -0.049
Imbalance: -0.175
What This Strategy Does
When leveraged positions get liquidated in a cascade, prices overshoot fair value. This strategy identifies cascade events in real-time and fades the extreme move, buying the forced-selling dip or shorting the forced-buying spike.
Works when: Works best when >$1M in liquidations occur within 5 minutes and price has moved >1.5% from pre-cascade levels. Historical 55% hit rate on reversal within 1h.
Fails when: Fails when the cascade is the start of a genuine trend reversal (not just over-leverage). Also fails when cascades trigger further cascades (multi-wave events).
Backtest Summary
Sharpe Ratio
1.2
Win Rate
55%
Max Drawdown
-14.7%
Risk Level
High
Period: 2025-03 to 2026-03 · Time horizon: 15m – 4h
Entry/Exit Checklist
- ✅ Cascade detected (>$1M liquidations in 5min)
- ✅ Price moved >1.5% from pre-cascade level
- ✅ Wait for cascade to slow (no new liq events for 30s)
- ✅ Funding rate was extreme before cascade (confirming over-leverage)
- ⚠️ Reduce size for multi-wave cascades
- ⚠️ Don't fade if cascade aligns with macro trend
Math & Logic
Entry: After cascade >$1M in 5min AND price move >1.5% Direction: Opposite to cascade direction Target: 50% retracement of cascade move Stop: New highs/lows beyond cascade extreme
Signal History — 24h
500 data points · hlp_liquidation_alerts
Required Signals
Liquidation AlertsFunding RateVolatility RegimeOI Change
API Endpoints
curl "https://algotick.dev/v1/signals/composite" curl "https://algotick.dev/v1/signals/volatility"
Datasets for Backtesting
Related
Don't just stare at the dashboard. Automate it.
Every metric on this page is available via our sub-millisecond API.
Build trading bots, backtest strategies, and power AI agents with institutional-grade data.