So welcome to week 2 of my trading strategy around the funding rate in Futures. Week 1 dealt with alot of trial and error trades so profitability was only OK so I wanted to push on this week with some more nailed down profit. This week I was picking and choosing trades more and I did not trade at the end of every funding rate countdown. The majority of profit was made by going long a couple of hours before the funding rate countdown and then getting out just before I had to pay the commission. Now there were a couple of stipulations here to this.
- The asset had to have a negative funding rate. The larger the better. So if I did decide to stay in the trade I was compensated by commission after the timer went to zero.
- The technical setup had to be right. I wasn't going to long an asset that was at the top for example. The asset needed to only looking like it was going one way and that was up. The funding rate countdown would then accelerate the process so by the time the countdown was close then I would pull out like the good Catholic boy that I am.
- If I shorted after the countdown for a double opportunity for profitability I found that the window of opportunity was an hour before the asset would come back up to its original position.
All these factors needed to balanced with a ranging market and no rug pulls which I will talk about soon.
So I am delighted to announce I had a 100% win rate last week and made $28 profit which beings me up to around €70 in my wallet. I am nearly out of the $20-$100 Futures danger zone. Once I reach $100, I can start diversifying. Below are my trades for last week. Take note of the times I am trading at. Mostly all around the funding rate coutdown. If there are anytimes that I closed the position outside these times I remained in the trade to gain commission or I shorted at the top after the funding rate countdown to see how low we can go. As I said above. All these assets had a negative funding rate.
Now all is not all rosy in the garden this week. One of the last trades I made was on Friday evening and it was Binances Football Token that was about to go up. So I wanted to ride the wave up and get out Friday evening before the weekend shenanigans of weekend crypto where anything can happen. But one thing happened. Bitcoin fell fast on Friday evening. Then on Saturday morning there was quite a bit of BNB FUD and crazy rumours that Binance was in trouble. This did not help their football coin that fell like an anvil and muggings here has an open long position. The only upside is that the funding rate is -2.00% at the moment which is giving me $5 commission every 8 hours. Now this is great but I am still -$35. Now I am in a bit of a pickle. Do I take the hit with the $35 or do I keep earning the commission so that my loss will be pretty much covered in a couple of days. Easy answer says the Hive reader. Keep earning the commission. But there is one factor that may put a hole in my plan.....
So what you may ask. What has that got to do with your open long position on football. Well it has alot to do with it. The average crypto alt coin trader doesn't wait around and moves onto their next chestnut. Football is yesterdays news so I expect the traders to move onto the next global trend leaving all football tokens descending back into the abyss. This is my worry so I am thinking of pulling the trigger. However the only shining light is the funding rate fee so this is keeping traders in their long positions. Now if there is a whale amonst us then he might pump the asset before he dumps it and I can ride the wave up and get out of the lift at the top but something tells me that there may be no lift to take and the token will plunge. I am still a bit away from the liquidation levels thankfully but you know in crypto. When an asset plummets then think of a bottom and half it.
So I will take joy this week in my 100% returns because it will be my last time for a long while getting this return. Hopefully Football will come home so to speak and resume last weeks levels. But just like the England team, I reckon Football is not coming home.