Open Interest Strategy

Learn a trend-following open interest strategy for crypto markets. Discover how rising open interest indicates strong trends for trade entry and management.

Published · Updated · Methodology: Technical Indicators

Part of: Trend Following

  • Methodology: Technical Indicators
  • Content type: strategy
  • Markets: Crypto

Indicators used

  • Open Interest

Source video

Decoded from: Trend Following Strategy Explained with Real Trade Examples by BikoTrading — watch the original

Key timestamps:

  • 0:00 - Introduction
  • 0:15 - Key idea: when to enter trades with rising Open Interest?
  • 0:55 - DOT example: my trade using this strategy
  • 1:45 - AVAX example: why you shouldn’t close trades too early?
  • 2:35 - SUI example: slow Open Interest growth without impulses
  • 3:35 - Why Open Interest is an important indicator for trading?

Strategy overview

Trend following means joining a directional move already underway rather than trying to call its start — and what separates this entry from the rest of the concept is the instrument BikoTrading uses to judge whether a move has real commitment behind it: Open Interest. Open Interest is not a price transform like a moving average or an oscillator; it is a count of derivative contracts still open, a second data stream running alongside the chart. That is why this entry is catalogued under technical-indicator methodology with a single captured indicator that is positioning data rather than anything computed from candles.

The video, "Trend Following Strategy Explained with Real Trade Examples", is built as a case walkthrough rather than a rule list. After a brief framing of its central question — when to enter with rising Open Interest — it spends most of its runtime on three named crypto positions: DOT, AVAX and SUI. The ordering is deliberate. The AVAX segment is about trade management rather than entry, asking why traders close too early, and the SUI segment is presented as a contrast case: Open Interest growing slowly, without impulses. Between them, roughly half the video is about what happens after the signal, not the signal itself.

No rule set was extracted for this entry, and no timeframes or indicator settings were captured, so this page indexes the video's chaptered structure and its Open Interest focus rather than a mechanical specification. Worth knowing before you watch: Open Interest exists only for derivatives — futures, perpetual swaps, options — and is reported per venue, so the same asset can show different Open Interest curves depending on which exchange or aggregate feed you read.

Topics

open interest strategy · trend following strategy · technical indicators · crypto trading strategy · pine script · tradingview strategy · trading strategy · open interest trading · crypto open interest · bitcoin trading strategy · altcoin strategy

Frequently asked questions

What is Open Interest and why use it with a trend following strategy?

Open Interest is the number of derivative contracts currently open on an instrument. Unlike price-derived indicators, it measures how much capital is committed rather than where price has been, which is why it is used as a check on whether a trend is attracting new positioning or simply drifting.

Does rising Open Interest confirm that a trend will continue?

No. Open Interest is directionless on its own — it counts open contracts without saying which side opened them — so it is read together with price direction rather than as a standalone signal. Interpretation is the whole difficulty, which is what the video's case-by-case format is trying to teach.

Which markets have Open Interest data?

Only derivatives markets: futures, perpetual swaps and options. Spot markets have no Open Interest, and the figure is reported per exchange, so aggregated and single-venue readings can differ for the same asset. The examples in this video are crypto assets — DOT, AVAX and SUI.

What does this Strategy Decoder entry contain?

It indexes the video's chapter structure, its channel and its indicator focus. No rule set, timeframe or parameter values were extracted from this source, so it works as a pointer into the Open Interest angle on trend following rather than as a mechanical setup you can test directly.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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