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BACKTESTING · OPEN-INTEREST CONFIRMATION

Open-Interest Confirmation Backtest in Crypto: Fees, Slippage and Break-Even Costs

Requiring OI to rise with a breakout aims to confirm new positioning. OI data timing and gaps decide whether the condition can be met without hindsight.

By ChartsPod Editorial Team · Reviewed by ChartsPod Research
Published · Updated · 5 min read

Short answer

An OI-confirmation rule takes a breakout only if open interest rose over the breakout window, suggesting new positions rather than short covering. Binance's OI history is by period and omits periods with no trades, and only covers about the last month via that endpoint; long backtests need archived data. Use OI values available at signal time, align periods with bars, compute break-even cost and compare with the unconfirmed breakout.

Break-even cost

ItemValue (illustrative)
Trades85
Gross avg per trade+0.71%
Fees (2 × 0.05%)−0.10%
Slippage (2 × 0.05%)−0.10%
Net avg per trade+0.51%
Break-even round-trip cost0.71%
Open-Interest Confirmation: edge vs cost per trade (%)Open-Interest Confirmation: edge vs cost per trade (%): Gross edge 0.71 %; Fees 0.10 %; Fees + slippage 0.20 %.OPEN-INTEREST CONFIRMATION: EDGE VS COST PER TRADE (%)Gross edge0.71 %Fees0.10 %Fees + slippage0.20 %
Edge per trade versus cost per trade. Original ChartsPod editorial graphic.

Confirmed vs unconfirmed

VersionTradesNet avg (illustrative)
All breakouts160+0.22%
OI rising ≥ 1%85+0.61%
OI falling75−0.19%
Illustrative net avg (%)Illustrative net avg (%): All +0.22 %; OI rising +0.61 %; OI falling -0.19 %.ILLUSTRATIVE NET AVG (%)All+0.22 %OI rising+0.61 %OI falling-0.19 %
OI separated new positioning from covering. Original ChartsPod editorial graphic.

Conclusion

Related: Binance Open-Interest Data: Null vs Zero - Handle Missing Fields Correctly, Funding-Rate Filter Backtest in Crypto: Fees, Slippage and Break-Even Costs.

Backtest the open-interest confirmation rule with costs in ChartsPod.

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Use OI values available at signal time, align periods with bars, compute break-even cost and compare with the unconfirmed breakout.

Compare Open-Interest Confirmation Backtest in Crypto across Binance, Bybit, OKX and Hyperliquid markets.

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Questions readers ask

Why confirm breakouts with OI?

Rising OI suggests new positions.

Is OI history long enough?

Binance's endpoint covers about a month; archive for longer.

What timing?

OI known at signal time.

Sources and methodology

Backtest cost logic follows TradingView's Pine Script strategy documentation; indicator definitions are standard. All performance numbers are illustrative examples of the method, not results of real tests.

  1. TradingView Pine Script: Strategies — simulated fills and assumptions.
  2. TradingView Pine Script: Repainting — live vs historical calculation.
  3. ChartsPod documentation — guides for order flow, derivatives, alerts, backtests, journal and workspaces.
  4. Binance: USD-M market data (long/short ratios, OI statistics, klines) — ratio definitions, 30-day retention, kline open/close time.

This article explains research tools and workflows. It is not financial advice, does not recommend buying or selling any asset and does not predict prices. Crypto derivatives carry a risk of rapid and total loss of margin.

CHARTSPOD EDITORIAL EDITION · RESEARCH AND EDUCATION ONLY · NOT FINANCIAL ADVICE.