The Original Liquidation Bot is designed to counter-trade high-volume liquidation events by using customizable VWMA (Volume Weighted Moving Average) bands as confirmation. When large liquidations push price outside of your manually defined VWMA thresholds, the bot enters a trade in the opposite direction — ideal for short, reactive scalps during volatile market moves.
Unlike traditional bots that calculate bands automatically, you set the VWMA band % thresholds manually for full control.
General Section
This section defines the identity and trading limits of your bot.
Field | Description |
Name | Internal bot name for your reference (e.g. “BTC DCA Long”). It does not affect execution. |
Side | Direction your bot is allowed to trade: |
Long – only enter long positions
Short – only enter short positions
Both – can take long and short based on signal |
Pairs - Select which trading pairs the bot is allowed to trade (e.g. BTC/USDT, ETH/USDT). You can select multiple.
Max Long Positions - Limits the number of open long positions at one time for this bot.
Max Short Positions - Limits the number of open short positions at one time for this bot.
Max Open Positions - Total combined positions (long + short) that this bot can open.
Base Order Section
This defines how the bot opens its initial position after a signal is received.
Field | Description |
Size | Determines how much of your account to allocate to the initial base order. This is not the full position size — DCA may increase the total size later. |
Size Type | Choose how the size is calculated: |
Percent – e.g. 2% of account balance
Dollar – e.g. $500 per trade
Market – enters immediately at market price
Limit – (if available) places a resting order at a specified price |
Margin Mode - Applicable for margin/futures markets:
Cross – shares margin across positions
Isolated – margin is isolated per position (limits risk)
Leverage - Sets the leverage used for this bot’s trades (if supported by the exchange and pair).
Use Volume Filters - Enables a filter to ignore signals on pairs with low trading volume. Useful to avoid slippage and illiquid markets.
Entry Logic
This bot listens for liquidation events and evaluates whether they breach your custom VWMA band settings. If a liquidation meets both the size and band deviation requirements, a position is opened against the liquidation direction.
Example:
A large long position is liquidated below the VWMA band → Bot enters a long
A large short position is liquidated above the VWMA band → Bot enters a short
🔧 Settings Explained
Setting | Description |
Long VWMA (%) | Sets how far below VWMA a liquidation must occur to trigger a long entry |
Short VWMA (%) | Sets how far above VWMA a liquidation must occur to trigger a short entry |
VWMA Timeframe | Candle resolution used in the VWMA calculation (e.g., 1m, 5m, 15m) |
VWMA Period | Number of candles used to calculate the VWMA |
Min Liquidation Size | Filters out small liquidations — only trigger entries above this threshold |
Sources | Select which exchanges to monitor for liquidation data |
Minimum Volume | Only enter trades when the liquidation candle has at least this much trading volume |
Maximum Volume | Prevent entries if candle volume exceeds this max (e.g., avoid news spikes) |
Example Configuration
Setting | Example Value |
Long VWMA | 1.5% |
Short VWMA | 1.5% |
VWMA Timeframe | 1m |
VWMA Period | 20 |
Min Liquidation Size | $75,000 |
Sources | Bybit, Hyperliquid |
Minimum Volume | 500,000 |
Maximum Volume | 5,000,000 |
This config will trigger a counter-trade if a liquidation larger than $75k occurs outside a 1.5% VWMA band, with adequate trading volume during the candle.
Fully Built-In Logic — No Signals Required
The Original Liquidation Bot is a self-contained system — there’s no need for TradingView signals or external inputs. Simply configure your thresholds, set volume conditions, and the bot will monitor liquidation flows automatically.
It’s a powerful tool for users who want to fade liquidation-driven moves with precision and speed.