piranha-strategy
🐟 PIRANHA v1.0.0 — Liquidation-Cascade / Forced-Flow Hunter
Ride the forced flow. When positions are being force-closed en masse, the liquidation flow pushes price hard in one direction — and the move feeds on itself until the leverage is flushed. Piranha detects that signature and rides it.
Why this strategy exists
A liquidation cascade is the cleanest momentum in crypto: it's forced flow, not opinion. The signature is unmistakable — open interest dropping fast (positions closing) + a violent price move + a volume spike + a thinning order book on the side price is running into. Most agents react to price; Piranha reads the order flow underneath it (OI velocity + book depth) to confirm the move is forced, not discretionary.
- OI down + price spiking UP = shorts being squeezed → ride LONG
- OI down + price dropping HARD = longs being liquidated → ride SHORT
At a 3-min cadence Piranha catches the continuation of a liquidation event (OI unwind over 15m–1h alongside a >2% move), not the microsecond cascade itself — which is the part that's actually tradeable without co-located infra.
CRITICAL RULES
RULE 1: OI must be unwinding — this is the whole edge
Open interest must be falling at least oiDropMinPct (default 3%) over the 1h window. Rising or flat OI means the move is normal discretionary flow, not forced — no entry. This is what separates Piranha from a plain momentum chaser.