PERPS

#Perps #fundingrate #cryptotrading #RiskManagement #priceaction
Perp funding is the market’s heartbeat for leverage. When it stretches too far positive or negative, good trades often appear—but only if entries are disciplined. Use this lightweight playbook to exploit extremes without getting steamrolled.
Why funding matters
Positive funding = longs paying shorts. Excessive positive funding means crowded longs; downside or sideways is more likely unless spot demand absorbs it.
Negative funding = shorts paying longs. Deep negatives signal crowded shorts; squeezes become likely if spot bids persist.
The two signals to watch
Magnitude: Compare current hourly/daily funding to its 30‑day percentile.
High-risk zones: Top/bottom 10% of the 30‑day range.
Divergence: Price flat or down while funding climbs, or price flat/up while funding sinks.
Crowding without progress = setup brewing.
Your playbook
A) Fade the crowd (countertrend scalp)
Conditions
Funding in top 10% and rising.
Price stalls at resistance or fails to make higher highs on 1h/4h.
Execution
Entry: After a rejection wick or a Close → Retest → Hold below the level.
Stop: Above the rejection high.
Target: First support or measured move equal to the prior leg’s height.
Notes: Keep size smaller; countertrend trades require quick profit taking.
B) Ride the squeeze (pro‑trend continuation)
Conditions
Funding deeply negative (bottom 10%) while spot leads price higher.
Breakout above prior high with volume.
Execution
Entry: Reclaim-and-hold above resistance.
Stop: Below retest low or last 4h higher‑low.
Target: Range height or prior weekly high; trail under new HLs.
Notes: Add only once after a clean retest.
C) Neutralize risk when funding normalizes
If funding snaps back toward neutral while price stalls, trim 25–30% and tighten stop. The edge is gone.
Regime filter: When to stand down
ETF flows print two consecutive red days and BTC dominance spikes.
ETH/BTC rolls over if trading alts.
Major news events incoming (CPI, FOMC, ETF decisions)—funding can flip violently.
Position sizing (keep it mechanical)
Risk budget: ≤1% portfolio per day; 0.25% per position if running four names.
Size = Dollar risk / stop distance.
Never widen stops to “wait it out.”
Checklist to paste on your screen
Funding percentile ≥90% or ≤10%?
Divergence present (funding ↑ while price flat/down, or funding ↓ while price flat/up)?
Clear level to trade (prior high/low or weekly level)?
Entry rule met: Close → Retest → Hold?
Stop = structure; first target defined; alerts set.
Common traps to avoid
Shorting just because funding is positive—wait for structure failure.
Buying solely on negative funding with no breakout or spot strength.
Adding while funding normalizes against the trade.
$BTC

$MYX
Current Price: $1.0741 (−10.2%)
ATH: $2.43 (Aug 8) → now down ~14%
Market Cap: $134M
Volume: $32M
Circulating Supply: ~125M
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🔎 What’s Driving Price Action?
Hype Factor: Upcoming V2 upgrade (zero-slippage + multi-chain trading) is building buzz.
Exchange Listings: Boosted the last rally.
Sell Pressure: Recent token unlock triggered a sharp pullback.
Looking Ahead: Another unlock due in November may weigh on sentiment if demand doesn’t pick up.
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⚖️ Key Question
Is this dip a buying opportunity ahead of V2 — or just the start of a deeper correction?
$MYX #MYX #Crypto #Perps