Perhaps this idea is completely ridiculous, but I wanted to share it with the group anyway, as there are some excellent experts here who might see an opportunity to develop this idea into a profitable strategy.
One thing is certain: trading bots thrive on volatility and achieve the best results in turbulent waters with high volatility. One of the indicators of high volatility is a rapid increase in openinterest.
The OrionTerminal portal has an open interest scanner and sends notifications when there is a significant increase in open interest. I manually tried to launch a DCA/GRID/COMBO bot at such moments and indeed achieved nice profits during increased volatility. Of course, this cannot be backtested because I am manually launching the bot.
Do you have any ideas on how this could be refined?
So far, we have not integrated any data providers, though that is in the pipeline. It would be a big project, though.
What we can do now is replicate indicators so that we can see the code in trading view. I checked the open interest indicator and found that only a few symbols actually support it. Getting data for a different symbol on the chart could be challenging if we need to get it.
By the way thank you for the tip. Now that Iām looking at the pattern of this indicator, it looks like we are due for a nosedive
