HOW I TESTED IT
Collecting funding on perpetuals is sold as passive yield. I pulled 34,431 funding events across 7 symbols and measured it.
Average funding is 0.0024% per 8-hour period. On a 150 USDT position that is 0.0036 USDT. A round trip costs 0.36 USDT - you would hold for 33 days just to cover entry and exit.
Meanwhile the price moves 2.36% in a typical 8 hours.
THE NUMBERS
Mean funding per 8h: 0.0024%
Annualised: 2.6%
8h price volatility: 2.36%
Periods to cover costs: 100
The income is real but tiny, and the price risk you take to earn it is roughly a thousand times larger. This is why desks that trade it hedge with spot. Unhedged, it is not income - it is a directional bet with a rebate.
Part of a public experiment: 5,063 USDT to 1,000,000 USDT, every result published - including the ones that make me look bad.
Run on $BTC $ETH $SOL
#Binance #Futures #Backtesting #TradingBot #CryptoData
Collecting funding on perpetuals is sold as passive yield. I pulled 34,431 funding events across 7 symbols and measured it.
Average funding is 0.0024% per 8-hour period. On a 150 USDT position that is 0.0036 USDT. A round trip costs 0.36 USDT - you would hold for 33 days just to cover entry and exit.
Meanwhile the price moves 2.36% in a typical 8 hours.
THE NUMBERS
Mean funding per 8h: 0.0024%
Annualised: 2.6%
8h price volatility: 2.36%
Periods to cover costs: 100
The income is real but tiny, and the price risk you take to earn it is roughly a thousand times larger. This is why desks that trade it hedge with spot. Unhedged, it is not income - it is a directional bet with a rebate.
Part of a public experiment: 5,063 USDT to 1,000,000 USDT, every result published - including the ones that make me look bad.
Run on $BTC $ETH $SOL
#Binance #Futures #Backtesting #TradingBot #CryptoData