D
RAVEN
Dashboard

Funding Reversal

FUTURESACTIVE4h candles, funding checked every 8h
+$3,362
+33.6% ROI

Trades against extreme funding rates — structural edge from liquidation mechanics

Performance Metrics
Win Rate64.3%
Sharpe3.54
Max Drawdown$1.6k
Total Trades142.3/mo
Avg Win+$907
Avg Loss$-960
Total Fees$334
ROI33.6%
How It Works — Plain English

In crypto futures, traders pay a 'funding rate' every 8 hours — longs pay shorts when there are too many longs, and vice versa. When this rate gets extreme, it means the market is dangerously over-leveraged in one direction. This strategy bets against the crowd at those extremes, exploiting the forced liquidations that follow.

Advanced Implementation+ expand
Entry Conditions
  • ▸Funding rate > 0.02% per 8h → extreme long bias → SHORT (longs get liquidated)
  • ▸Funding rate < -0.01% per 8h → extreme short bias → LONG (short squeeze incoming)
  • ▸ATR > 0 — market has sufficient volatility to move
  • ▸Uses real Binance funding rate data (543 data points, 6 months)
Exit Conditions
  • ▸Stop loss: 2x ATR from entry
  • ▸Take profit: 2x the risk distance (2:1 R:R)
  • ▸Time stop: 12 bars (2 days on 4h) — no move = cut the position
Position Sizing

size = (balance × 3% × leverage) / (ATR × 1.5) — slightly tighter than BB-Squeeze given the higher base win rate.

Data Sources
  • Funding Rate — Binance Futures (543 data points, 6 months)
  • OHLCV 4h — Binance Spot
Key Parameters
  • ▸Long extreme threshold: > 0.02% per 8h
  • ▸Short extreme threshold: < -0.01% per 8h
  • ▸Stop: 2x ATR, Target: 2x risk
  • ▸Time stop: 12 bars