$ALPACA Many people have a misunderstanding about earning funding rates. I want to share a technique I use for earning funding rates. First, when earning funding rates, always choose those with high funding rates and high collection frequency. This point is self-explanatory; otherwise, it’s meaningless. Second, the so-called earning funding rates is definitely not about having a 59 open and 01 close, as that would lead to significant losses. Third, there are two types of entry methods: one is to enter when there is a clear upward or downward trend, choosing to enter in the direction of the trend. For example, with ALPACA, even if you enter at 59, and you are losing in the next hour, do not close the position. Wait for a pullback to your entry price and decisively exit. This equals earning the funding rate for free. The other method is to wait for the new hourly line, enter when the drop exceeds the funding rate, and there’s already a pin bar structure pointing down or up in a lower timeframe. Then, when you pull back to the hourly opening price, exit. This means you have earned part of the funding rate through market digestion. Lastly, since you choose to earn the funding rate, your profit expectation should only be that part of the funding rate. Do not be greedy; the stop-loss space is the same. Do not think about gaining both the price increase and the funding rate.