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✨ AI Workflow for Identifying and Updating Liquidation Cascade Criteria
To get the agent code, run npx @backtest-kit/cli --init --output my-project
Previously I wrote about Why the Price Drops in a Single Candle . The cause of that phenomenon is a liquidation cascade.
A liquidation cascade is not random price movement. The price drops below a certain level and the exchange forcibly closes positions — via market orders, selling everything at once without discrimination. The price drops fast and deep within one or two bars, after which there is no one left ...
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