Shanzhai Coin Short Squeeze Strategy Practice: AI Constructs Anomaly Signal Monitoring Robot

Recently, opportunities for short squeezes in altcoins have frequently emerged. I successfully captured the $VOXEL market through an AI monitoring system. This article will deeply analyze the strategic logic and guide you step-by-step on how to create a dedicated monitoring bot using Prompts.

The current cryptocurrency market is influenced by macro policies, leading to a tightening of liquidity for risk assets. Holders of large amounts of altcoins are facing liquidity dilemmas: how to offload in the spot market? The perpetual contract market is becoming a new battleground for these holders to cash out!

I. Strategic Deduction Logic#

How do holders leverage the perpetual contract market to exit? The following are the logical deduction steps:

1. Holder's Dilemma#

Huge spot positions
Direct selling triggers a price avalanche
Insufficient market depth makes it hard to offload

2. Contract Breakthrough#

Forced buying during short stop-loss/liquidation
Perpetual contracts provide a liquidity exit

3. Short Inducement Strategy#

Raising spot prices (manipulating the mark price)
Attracting retail investors to short contracts

4. Fee Arbitrage#

Short accumulation leads to negative fees
Holders profit from long positions, earning double returns

5. Ultimate Harvest#

Push up to key resistance levels
Trigger concentrated short liquidations
Complete chip distribution and reverse to short

The essence of this strategy is to utilize the forced buying from short liquidations to create a liquidity exit channel for the holders.

II. Core Monitoring Dimensions#

The complete short squeeze cycle presents the following data characteristics:
Extreme negative fee rates → Abnormal growth in OI → Breakthrough resistance levels → Long-short ratio decreases → Indicator regression

Key monitoring indicators are as follows:

1. Abnormal Funding Rate#

Negative value breaks the -0.1% threshold
Indicates extremely high control over the spot market
Signals potential short squeeze layout

2. OI Anomaly#

Short-term OI increase exceeds 100%
Holders build positions receiving short chips

3. Price Breakthrough Behavior#

Breakthrough of key resistance zones
Triggers short liquidation procedures

4. Indicator Recovery Signals#

OI volume diminishes
Fee rates return to normal values
Long-short ratio rebounds

Abnormal fluctuations in funding rates and OI are core indicators for early warning!

III. AI Monitoring System Construction#

Automated monitoring is achieved through Python + Telegram Bot, with key implementation steps:

1. Data Collection Module#

Obtain key data for perpetual contracts from the Binance API:

Mark price / Index price
Basis and percentage
Funding rate
Open interest (OI)
Long-short account ratio
Large holder position ratio
Taker buy-sell ratio
(API documentation: https://developers.binance.com/docs/derivatives)

2. Data Storage Mechanism#

5-minute level data scraping
Store CSV files by trading pair
Historical data path: data/{symbol}.csv

3. Intelligent Alert System#

Composite trigger condition settings:

Absolute value of funding rate > 0.1%
Short-term OI average (3 periods) / long-term OI average (10 periods) > 2
Alerts pushed via Telegram Bot after triggering

After deploying this monitoring system, it is recommended to set stop-loss and take-profit levels in conjunction with technical analysis. Market opportunities continue to exist; deploy your digital sentinel immediately!

Original @AI Soros Kote

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