Smart Crypto

The strategy combines two complementary signals. The contrarian component identifies extreme liquidity shocks where price moves appear disproportionate to the underlying change in market conditions. When selling pressure becomes statistically extreme while liquidity rapidly deteriorates, the strategy looks for subsequent mean reversion once forced flows disappear. The trend-following component targets situations where the liquidity shock is accompanied by persistent order-flow imbalance, increasing volume, sustained aggressive trading, and continued deterioration in market depth. Rather than fading the move, the strategy follows the direction of the pressure when microstructure variables confirm that the move is persistent.