Contrarian funding rate
Goes against the crowd when perpetual funding hits extremes. It's cloned turned off in your practice account so you can review it before turning it on.
How it works
- 1It triggersAccording to its frequency: 1 h.
- 2It reads the dataPrices and signals for BTC · ETH · SOL.
- 3It evaluates the ruleGoes against the crowd when perpetual funding hits extremes.
- 4It acts and notifiesIt trades in practice or sends you the alert, depending on the template.
About this strategy
On perpetual futures, the funding rate is a periodic payment between long and short positions that keeps the contract price close to spot. When it’s very positive, leveraged buyers heavily outnumber sellers; when it’s very negative, the opposite.
The contrarian idea is that funding extremes signal an unbalanced market, prone to a sharp move against the crowd when leveraged positions get closed. The template watches BTC, ETH and SOL funding and takes the other side when it crosses extreme thresholds.
It’s a high-risk strategy: fading the crowd works at turning points, but a market can stay unbalanced longer than your stop can hold. Use small sizes and try it in the practice account first.
The workflow
Click a node to see what it doesCustomize it before cloning
What you'll receive
Questions about this strategy
A periodic payment between long and short positions on perpetual futures. When it’s positive, longs pay shorts; when it’s negative, the other way round.
It depends on the asset and the moment. You set the thresholds when you create it; compare a few with a backtest before turning it on.
Not necessarily. The signal comes from the futures market, but you can execute the trade on spot without leverage.
It's cloned in practice. Try it for a few weeks and move it to real money only if you're convinced, with your risk limits.
Learn before you switch it on
- How to backtest a trading strategy without fooling yourselfWhat backtesting is, how to test a trading strategy on historical data and the mistakes that inflate results: overfitting, look-ahead bias, fees and slippage.
- How to build a trading bot without codingA step-by-step guide to building a trading bot with no code: turn your strategy into rules, backtest it and run it on paper before you risk real money.