⚠️ Important Note: This simulation tests each symbol with its own $10K account (not pooled). Crypto symbols can show 40-75%+ fee drag due to high trade frequency.

Stocks are FREE on Alpaca, so the ~100 stock symbols have zero fee impact.

⚙️ Trading Strategy

Buy after 10% dump with cascade liquidations

After a 10% dump with cascade liquidations, sellers are exhausted—they've been forced out. Luke buys the bounce, targeting 5%.

🎯 Best Suited For

Post-liquidation bounces

"One man's margin call is my entry signal."

📜 Why This Strategy Works

Once the leveraged traders are gone, only unleveraged sellers remain—and they're not forced to sell.

Mathematical Formula

CODE VERIFIED — These formulas are extracted directly from the simulation engine and verified against the source code.
Source: scripts/run-*-simulation.php

📊 Entry Signal (Post-Liquidation Bounce)

📈 Entry Signal (Post-Liquidation Bounce)

                        4h Price Drop ≥ 10% AND Volume ≥ 3× average                    

→ BUY - Leveraged sellers exhausted, bounce imminent

📉 Exit Conditions

                        • TARGET: Price ≥ entry × 1.05 (+5% gain)                    

                        • STOP_LOSS: Price ≤ entry × 0.97 (-3% loss)                    

                        • MAX_HOLD: 24 hours (quick bounce play)                    

⚙️ Simulation Parameters

                        DUMP_THRESHOLD_PCT:
                        10%
                    

                        VOLUME_MULTIPLIER:
                        3
                    

                        LOOKBACK_HOURS:
                        4
                    

                        TARGET_GAIN_PCT:
                        5%
                    

                        STOP_LOSS_PCT:
                        3%
                    

                        MAX_HOLD_HOURS:
                        24
                    

📖 Historical Origin

Origin: Leveraged crypto liquidation cascades

By 2014, exchanges offered 10x, 50x, even 100x leverage. Liquidation cascades became a regular feature of crypto markets.

🏆 Top 10 Performing Symbols (2 Years)

📉 Worst 5 Performing Symbols (2 Years)

📊 All Symbol Results

Click on any row to see detailed trade history with equity curve

📅 2 Years: Feb 14, 2024 → Feb 14, 2026 (731 days)

Rank	Symbol	Return	Start	Final Value	Trades	Win Rate	Fees	Net	Max DD	Avg Hold	Refunds	Last Refund
1	PEPEUSD ₿	+259.44%	$10,000	$35,944	112	50%	$19,143	+$25,944	-49.0%	3.5h	✓	-
2	SHIBUSD ₿	+141.37%	$10,000	$24,137	30	60%	$2,946	+$14,137	-19.9%	3.5h	✓	-
3	XRPUSD ₿	+86.86%	$10,000	$18,686	26	77%	$1,940	+$8,686	-25.9%	4.6h	✓	-
4	DOTUSD ₿	+18.76%	$10,000	$11,876	21	62%	$1,203	+$1,876	-12.0%	3.3h	✓	-
5	ETHUSD ₿	+11.19%	$10,000	$11,119	8	63%	$414	+$1,119	-13.6%	2.9h	✓	-
6	LINKUSD ₿	+7.34%	$10,000	$10,734	22	45%	$1,331	+$734	-13.1%	3.7h	✓	-
7	BTCUSD ₿	+5.90%	$10,000	$10,590	1	100%	$52	+$590	-0.0%	0.3h	✓	-
8	AVAXUSD ₿	+0.48%	$10,000	$10,048	22	55%	$1,345	+$48	-33.1%	3.6h	✓	-
9	LTCUSD ₿	-3.67%	$10,000	$9,634	15	60%	$805	-$367	-31.9%	5.0h	✓	-
10	SOLUSD ₿	-4.87%	$10,000	$9,513	14	36%	$818	-$487	-22.9%	3.8h	✓	-
11	UNIUSD ₿	-11.82%	$10,000	$8,818	24	58%	$1,351	-$1,182	-38.5%	4.2h	✓	-
12	DOGEUSD ₿	-30.12%	$10,000	$6,988	23	35%	$1,112	-$3,012	-31.7%	5.6h	✓	-

👤 Personality

Opportunistic, patient, slightly predatory. Doesn't feel bad about profiting from others' margin calls.