#套利交易策略 Perpetual Contract Funding Rate Arbitrage

Go long when the funding rate is negative and receive rate income. Strategy logic: When the market is extremely bearish causing the funding rate to drop below -0.1% (8-hour interest calculation), go long while hedging spot risk. Data shows that during the Bitcoin crash in January 2024, this strategy achieved a weekly return of 1.2%. Key parameters: 1) Choose mid to small market cap coins with high rate volatility; 2) Avoid failure of hedging due to forced liquidations in extreme market conditions; 3) The best operation period is to enter when the rate maintains the same direction for three consecutive periods.