What do you know about Funding rate strategy
[F]unding rates... in crypto or forex[?]
Exactly, Do you know that with a simple calculation, we can trade this by using an arbitrage strategy directly after taking a trade a few seconds before the market close , this strategy should to cover the gap at the market open !!
People have just to check the Nasdaq or gold proprieties and they will be surprised by how high the swap value can be ,
but in crypto, it’s completely different from forex, It requires high-frequency orders to catch the move at the exact moment, and we’re talking about millisecond-level execution trades
Just as a peculiar introductory example, you can look at the expert CrazyCarryTrade.mq5 in the algotrading book.
I'm not sure it will work with crypto in MT5, because I see big monthly commissions from crypto-brokers while testing some EAs on BTC, which kills any trading system which do not generate super profits.
- www.mql5.com
CrazyCarryTrade.mq5...
Got to love the honesty of the file name. 😅
In my corner of the world, forex spreads go wild and execution suffers surrounding the daily close. In fact, forex broker-dealers here enforce trading blackouts shortly before the daily close. This is generally when my broker-dealer reconciles its book in the interbank market. Plus, the amount of capital that I would have to risk to meaningfully profit from the swap just isn't worth it.
What I'm hoping to see in this thread is whether there are any traders that can glean directional bias from aggregated swap data--for the purpose of trading say, a daily chart.
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let me ask you ,has anyone here used funding rates as a standalone trading system, in crypto or forex ? i don't mean as an indicator, but as a real edge for entries, bias, or hedging. if yes i am curious to hear real results, not theory ..