Continuing the topic of trading without relying on 'head and shoulders' patterns. Today we'll examine what many lose their deposit on, even before opening losing trades — Funding Rate (Funding Rate). 🔍
What is this in simple terms?
On Binance futures, traders pay each other every 8 hours to keep the contract price close to the spot price.
If everyone is 'longing' — longs pay shorts.
If everyone is 'shorting' — shorts pay longs.
Why is this critical for a Grid bot? 🤖
When you run a neutral grid, you're effectively holding positions within a range.
📈 Hidden profit: If you're in a position that's being PAID (e.g., short with positive funding), the bot earns not only from the grid but also from simple holding.
📉 Hidden loss: A high funding rate can slowly 'eat away' your entire profit if you're on the wrong side of the crowd for too long.
My lifehack: 🇰🇿
I always check the rate before launching. If funding spikes (above 0.03%) — it's a signal of market overheating. Funding is either your best ally or your greediest middleman. ⚠️
Don't let it become your 'silent killer'. In the next post, we'll dive deeper into how I choose entry points and set up alerts to use funding to my advantage. ⚡️
Do you pay attention to the Funding Rate, or do you think it's just 'pennies' not worth noticing? 👇
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