Crypto Open Interest (OI) trading system by Lekkim

Dear viewers and followers

After years of researching I came up with the most promising system I've made.
It will be my 'last shot' in terms of trading, because I simply cannot (at least for now) come close to anything better. I'm gonna live trade it from Friday to get official journal record.

Also since this threads old previous and latest update and system haven't yield satisfying result, I advise you to be careful trading that, but I recommend my new system which is evolved from all the analytics and development from this thread and even earlier threads of mine here on FF.
I will make and link here to the new thread coming tomorrow which will be much more explained and detailed professionally.

It's going to be named 'Crypto CDV & NVOI Daytrading System'.
The amount of back and forward testing and work I've done on this new strategy is really a lot and I hope for profitability and a helping hand to fellow traders to network and evolve for all to end with a lot of green pips. If I caught your interest, I can say a few things about this coming method.
It will be able for all to setup for free on TradingView and will contain 3 lines (Price close, Cumulative Delta Volume indicator and Notional Value of Open Interest indicator. So, only one chart window and fairly simple to understand even theory and method behind is more complicated.

Basics of it is the assumption that those 3 lines somewhat should (and do) follow each other.
The 'play' and movement going on between them are to be analyzed and when gaps and differences occur, trade entries and trade exits can possibly be executed. A much deeper explanation and tutorial will be made.

Thank you all viewers and thread contributors and for the warm support through my time on this wonderful site.

Best regards, Lekkim

Introduction

What if Cumulative Delta Volume and Notional Value of Open Interest could be used to predict crypto market price movement?

With the extraction of data from Binance futures perpetuals (almost 500 pairs) to TradingView software site, we can get useful and valid data from the by far biggest crypto derivatives exchange to be used as data indication for this system.

Price close line shows changes in the price and value
Cumulative Delta Volume (CVD) indicator line shows the total buying and selling volume
Notional Value of Open Interest (NVOI) indicator line shows the total value of all open positions

By comparing that 3 lines on the same chart gives us an overview of the money flows during the day. Theory behind this system is that it would make sense that the 3 lines often follow each other. We look at two primary factors, gap between the lines and how volatile they are. Price direction seems to be attracted by the most stable of line or lines and going against the most unstable of line or lines.

NEW THREAD

I will continue this project in my new thread here:
https://www.forexfactory.com/thread/...trading-system
This thread will stay up for interested traders to read the journey, but it will be easier giving information about the new strategy in a thread without such many pages of research and development and noise.

Cya gentlemen in the new one!

Open interest reflects the number of contracts that are held by traders and investors in active positions that are ready to be traded, and notional value reflects a total value controlled by a position; how much value is represented by a derivative contract. Notional value distinguishes between the amount of money invested and the amount of money associated with the whole transaction. Open interest is what helps you determine whether there is high or low liquidity and value. Therefore it makes sense they often follow each other.

Hi

Welcome back!

I wish you well and lots of !!

Go well / Mos

Data is available in M5 to H2 and with a max historic of one month.
Only Binance futures offers this indicator, which gives a lot of transparency.
For example CHILLGUY looks ready to fall on H2 as price and notional OI been rising when OI falling.

Hi my old fren! Hope all is well Wishing you endless green pips /Lekkim

Are you finding worthwhile signals across all time frames or only lower TF?
Thanks

Good thing about this data is no difference or re paint if changing timeframe... I use mostly H2 which zoomed out goes one month back and then confirms the trades on intraday M5... Find out what fits you (Y)

I like to use it with new listings also, here is some examples of that...

Thanks I see BTCUSD has data for the daily chart.How do you interpret that?

Not a strong signal but bearish, since liquidity is lower now at 103k than is was at 96k.
Remember, Binance Futures stands for a total of about 35-40% of derivatives trading globally, so data should somewhat reflect overall market trend, imo.

Ok got it, thanks, this is usefull.

What would a strong signal look like?

Not strong intraday m5 signals on BTC today, however could have been scalped pretty decent as showed.

yes thanks so in terms of the daily chart i posted would you consider that a strong signal on the daily or no?

Just look at the difference between green and orange, the bigger gap and even better if goes different ways. This shows GRIFFAIN which should have been shorted 35% higher up than now, but would still short it since there is still low liquidity even it pamped a lot recently.

Thanks , very interesting

This BROCOLLI pair is interesting, from an extreme pump sell signal to an extreme buy signal... It's strange it could pump 100-200% with no new liquidity entering the market and now at current price you see a lot of new money entering the market (we don't know if it's buys or sells, but normally retail traders in binance futs buys more)

What other confirmation do you use before you execute a trade with this system?