Golden Toad Guide 7/13
Opportunities: I use just three criteria to filter
In Opportunities, the system surfaces opportunities by currency, exchange combination, and expiry date. I look at just three things when filtering.
① Net APR
For funding rate arbitrage, what matters most is the final return. An opportunity with a high fixed spread on Boros but higher fees and slippage may not beat one with a slightly lower spread and cleaner execution.
② Liquidity
For the same opportunity, the execution price can differ significantly between a notional of 10,000 U and 100,000 U. When Boros lacks depth, large market orders can noticeably reduce returns.
③ Duration
If it’s too short, trading costs can’t be spread out enough. If it’s too long, you have to bear margin, exchange, and market risks for longer.
You can expand the page’s with these assumptions section to adjust parameters: Notional, Perp entry (open both legs at market vs. Limit + hedge), Perp exit cost (close at expiry vs. assume a roll), and Boros entry (based on the mark rate vs. simulate a market order using the actual notional).
We recommend starting with Market at size to see the estimated price impact on the Boros side, then comparing how much a limit order can improve it. At mark rate is optimistic and can easily overestimate returns when liquidity is thin. After reviewing the breakdown of direction, notional, margin, and fees under More details, click Open this strategy.
Opportunities: I use just three criteria to filter
In Opportunities, the system surfaces opportunities by currency, exchange combination, and expiry date. I look at just three things when filtering.
① Net APR
For funding rate arbitrage, what matters most is the final return. An opportunity with a high fixed spread on Boros but higher fees and slippage may not beat one with a slightly lower spread and cleaner execution.
② Liquidity
For the same opportunity, the execution price can differ significantly between a notional of 10,000 U and 100,000 U. When Boros lacks depth, large market orders can noticeably reduce returns.
③ Duration
If it’s too short, trading costs can’t be spread out enough. If it’s too long, you have to bear margin, exchange, and market risks for longer.
You can expand the page’s with these assumptions section to adjust parameters: Notional, Perp entry (open both legs at market vs. Limit + hedge), Perp exit cost (close at expiry vs. assume a roll), and Boros entry (based on the mark rate vs. simulate a market order using the actual notional).
We recommend starting with Market at size to see the estimated price impact on the Boros side, then comparing how much a limit order can improve it. At mark rate is optimistic and can easily overestimate returns when liquidity is thin. After reviewing the breakdown of direction, notional, margin, and fees under More details, click Open this strategy.
