Funding Rate Exploitation

1/ Funding rate extremes = asymmetric setups.

Most traders ignore this edge.

2/ When funding is heavily positive:

Longs overcrowded → downside risk increases.

3/ When funding is deeply negative:

Shorts overcrowded → squeeze probability rises.

4/ Combine with:

• Open Interest spike

• Key HTF resistance/support

Crowded trades unwind violently.