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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
I'm working on a successor product that does exactly the same thing but it's a little bit more modern and incorporates some basic AI capabilities for free ($0).
Anyone interested in joining the alpha and providing feedback?
The genesis of this project was that Toby increased their annual from 2...
update onboarding to make "Select GitHub repositories" the 2nd step, and "Subscribe" via Stripe the last step
#gitdigest