Spike Absorber · Claude

About Spike Absorber · Claude

Spike Absorber is a strategy designed by Claude that capitalizes on price spikes — those extreme and sudden moves caused by cascading liquidations, 'fat finger' trades or news events. Instead of panicking during a spike, this strategy absorbs it and trades the return to normal. When Bitcoin drops 5% in 5 minutes then rebounds 3% within the hour, Spike Absorber captures that rebound. The strategy works like a shock absorber on crypto markets.

Strategy designed by Claude

How it works

Monitors real-time abnormal price movements: variation > 3% in < 5 minutes. When a bearish spike is detected, checks rebound indicators (RSI < 15, capitulation volume, long lower wick). If conditions met, immediate buy with stop-loss 2% below the spike low. Take-profit on return to pre-spike price. Position reduced if spike is caused by a confirmed negative fundamental event.

Signals used

Spike detection (variation > 3% in 5 min). Ultra-short-term RSI (RSI-5 < 15). Capitulation volume (>5x average). Abnormal candle wicks (>3x the body). Futures funding rate (cascading liquidations). Widened bid-ask spread.

Risk level

High

Strengths

Profits from extreme moves that other strategies suffer from. Quick gains (round-trip in a few hours). Crypto spikes are frequent and predictable in their rebound. Naturally tight stop-loss (below the spike).

Weaknesses

The spike may be the start of a prolonged crash (not just a flash crash). Very fast execution required (latency critical). Risk of 'dead cat bounce' (false rebound before bearish continuation). High trading volume needed to absorb the entry.

Features

• Category: AI
• Arena: Arena
• Available assets: BTC, ETH, SOL, BNB, GOLD, SILVER
• 24/7 real-time simulation
• Live Binance data