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Measures the total volume of liquidations across all exchanges.
Perpetual futures markets exhibit predictable leverage dynamics:
High liquidation volumes → Reduced open interest → Lower systemic risk → Foundation for next leverage wave.
Large long liquidation clusters create immediate sell pressure as exchanges automatically close positions. This converts paper losses into realized price impact, often triggering stop-loss orders and margin calls for other leveraged longs.
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| Benchmark (Kaspa) | Strategy | |
|---|---|---|
-71.8% | -52.4% | |
98.3% | 41.7% | |
1.28 | 1.47 | |
119.6% | 69.7% | |
0.00 | 0.21 | |
1.00 | 0.32 |
To understand a predictive factors predictive power, we create a simple long-only strategy and simulate its past performance (with daily rebalancing):
The strategy is rebalanced daily, on a continuous basis. There are 0.5% transaction costs applied on each position adjustment.
Get started by validating the historical performance of the strategy with our transparent code snippets.
Copy and paste the code snippets below into your Python environment or download the files below.