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LiquidityTails

LiquidityTails is a built-in TypeScript strategy from @tradejs/strategies.

It detects wick/tail liquidity zones, waits for retests, and trades reactions with a stop outside the retested zone.

Entry Logic​

  1. Replays candles through createLiquidityTailsEngine(...).
  2. Reads runtimeState.signal and current runtimeState.zones.
  3. Skips until a liquidity-tail retest signal exists.
  4. Selects LONG or SHORT side config from signal direction.
  5. Builds a stop buffer from:
    • signal.atr * LIQUIDITY_TAILS_STOP_ATR_BUFFER_MULT
    • current price percent from LIQUIDITY_TAILS_STOP_BUFFER_PCT
  6. Places the stop outside the zone:
    • long: below signal.zone.bottom
    • short: above signal.zone.top
  7. Computes target from LIQUIDITY_TAILS_TARGET_R_MULT.
  8. Sizes quantity from MAX_LOSS_VALUE / riskDistance, with FEE_PERCENT buffer.
  9. Returns entry with liquidity-tail figures and liquidityTailsContext.

Entry codes:

  • LIQUIDITY_TAILS_BUY_PRESSURE_RETEST
  • LIQUIDITY_TAILS_SELL_PRESSURE_RETEST

Exits​

When a position exists:

  • LIQUIDITY_TAILS_OPPOSITE_RETEST_EXIT when LIQUIDITY_TAILS_EXIT_ON_OPPOSITE_RETEST=true and the opposite retest appears.
  • otherwise POSITION_EXISTS.

Config Parameters​

Liquidity-tail model:

  • LIQUIDITY_TAILS_ATR_LENGTH
  • LIQUIDITY_TAILS_ATR_MULT
  • LIQUIDITY_TAILS_MIN_WICK_RATIO
  • LIQUIDITY_TAILS_WICK_DOMINANCE
  • LIQUIDITY_TAILS_MIN_GAP
  • LIQUIDITY_TAILS_MAX_AGE
  • LIQUIDITY_TAILS_KEEP_BROKEN
  • LIQUIDITY_TAILS_REACTION_CLOSE_BEYOND_ZONE
  • LIQUIDITY_TAILS_REQUIRE_REACTION_BODY
  • LIQUIDITY_TAILS_MAX_RETEST_DISTANCE_PCT
  • LIQUIDITY_TAILS_STOP_ATR_BUFFER_MULT
  • LIQUIDITY_TAILS_STOP_BUFFER_PCT
  • LIQUIDITY_TAILS_TARGET_R_MULT
  • LIQUIDITY_TAILS_EXIT_ON_OPPOSITE_RETEST
  • LIQUIDITY_TAILS_MAX_FIGURE_ZONES

Shared groups:

  • runtime: ENV, INTERVAL, MAKE_ORDERS, BACKTEST_PRICE_MODE
  • AI/ML: AI_ENABLED, AI_MODE, MIN_AI_QUALITY, ML_ENABLED, ML_THRESHOLD
  • risk: FEE_PERCENT, MAX_LOSS_VALUE, LONG.*, SHORT.*
  • shared indicators: MA, OBV, ATR, BB, MACD fields

Signal Payload​

The strategy stores:

  • additionalIndicators.liquidityTailsContext
  • zone/entry/stop/target figures from buildLiquidityTailsFigures(...)
  • one take-profit at the computed target

Common Skip Reasons​

  • NO_LIQUIDITY_TAIL_RETEST
  • POSITION_EXISTS
  • DEV_TRADE_COOLDOWN
  • STRATEGY_DISABLED
  • INVALID_STOP
  • INVALID_QTY
  • RISK_RATIO:<value>

Validation Notes​

Check zone age, broken-zone behavior, and retest distance before comparing results. This strategy can be materially affected by candle wick quality and provider differences.