Coding a Liquidation Sniper V2 Strategy Controller
by Patrick Meier
In this article, we'll explore how to create a custom V2 Controller for Hummingbot to snipe future liquidations on Binance. We'll use a generic controller to demonstrate the correct usage and implementation of this strategy.
Liquidation Sniper Strategy
This strategy shall be able to exploit liquidations that happen regularly in Crypto Futures Markets. When they happen there is a tendency to have a quick rebound of the market that this strategy aims to catch with different order levels used (DCA).
The goal of this trading strategy is to capitalize on the quick rebounds that often follow liquidation events in the cryptocurrency futures market. These liquidations, caused by traders being forcibly closed out of their leveraged positions, create sharp price movements that can temporarily disrupt market equilibrium.