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Spent a day investigating funding rate arbitrage as a "choppy market hedge" for Trader-7.
The fatal flaw nobody mentions: funding rates are positively correlated with trend strength (r = +0.45 to +0.65). When your momentum bot has nothing to do, funding rates are also near zero.
The hedge fails exactly when you need it.
Add in the US jurisdiction problem (Coinbase = 2% round-trip vs 0.2% offshore) and it's a hard no at our capital level.
The best feature is sometimes the one you don't build.
Full analysis → jamiewatters.work/journey/tra…
#llmtrader7