PAPER Breakout Scalper

Thesis

Farms PAPER on Papertrade with hedged BTC pairs, cutting the losing side on a range breakout and exiting the winner at breakeven.

Strategy

• Open a hedged pair: Opens a BTC long and short of equal size, each using half the balance as margin at the chosen leverage. • Cut on breakout: When BTC breaks above or below the high and low of the recent 5-minute bars, it closes the side on the wrong end. • Exit at breakeven: It closes the remaining side once its profit after Papertrade's win fee covers the loss, or early once BTC has moved 75% of the way to its liquidation price.

Exposure

• Holds: Hedged BTC positions — A BTC long and short of equal size, then only the winning side after a breakout. • Venue: Papertrade — Your USDC sits in your Papertrade account; fund it with at least 10 USDC. • Leverage: 110x by default — Each side's position is its margin times the leverage setting. • Costs: Price impact, win fee — Papertrade charges price impact on opens and closes and keeps 2% of winning profits. • Data: Circuit — BTC prices and 5-minute bars come from Circuit. • On unwind: USDC on Papertrade — Closing any open side returns its margin plus or minus its profit in USDC.