A series of consecutive upward or downward movements, accompanied by increasing trading volume, is likely to generate momentum in the opposite direction. Therefore, considering the accumulation of multiple candles moving in the same direction, it is advisable to initiate a contrarian position after a sequence of such candles and exit the position on the following candle.
Combine with SMA, EMA, and ATR indicators and Stop Loss methodology to ensure we can make good deals with over 90% profitable deals.
This is a neutral strategy, which can fit both bullish and bearish markets.
The foundation of funding rates come from the gap between the perp and the spot.
The gap is big enough while it spikes.
Hence, This is where we cut in.
Around 95% of values are within 2 standard deviations of the mean.
So, we step in when the funding rates is higher than it's mean + 2 * standard deviations and we step out while it goes back to mean.
