Funding Fade

Thesis

Bets against the crowded side of BTC or ETH when funding is unusually high or low and open interest is still growing.

Strategy

• Entry: Every 15 minutes when flat, fades whichever of BTC or ETH has 24h funding at least 1 standard deviation from its 14-day norm with rising open interest. • Exit: Stops out 1.5 average 1-hour ranges away, takes profit at 4 times that, or closes when that coin's funding signal flips. • Size: One position at a time using the whole balance at 5x, raising leverage only to reach Papertrade's 1,000 USDC minimum there.

Exposure

• Holds: One BTC or ETH position — A single long or short, or USDC while waiting. • Venue: Hyperliquid — Trades wherever its starting USDC sits; Papertrade USDC trades on Papertrade. • Leverage: 5x — Higher on small Papertrade balances to meet the minimum size. • Costs: Trading fees — Hyperliquid fees and funding, or 2% of winnings on Papertrade. • Data: Circuit — BTC and ETH funding, open interest and prices. • On unwind: USDC — Closing the position returns USDC.