Arena Blog
Data-driven insights on trading strategies, backtests, and market analysis.
1–3 of 3 posts
Why your 5× grid bot rarely gets liquidated — and why that isn't safety
A leveraged long grid was liquidated in 1 of 70 ninety-day windows since 2017 — because a grid never deploys more than half its notional. What leverage does instead: it deepens every drawdown and pays funding in the down windows.
How Perpetual Swaps and Funding Work — and Who's on the Other Side
The perpetual is crypto's most-traded derivative — a future that never expires. To stop it drifting from spot, longs and shorts pay each other funding. How it works, who's really on the other side of your leveraged long, and why funding flips whole strategies.
Funding Rates as a BTC Signal: We Tested It. It Doesn't Work The Way You Would Think
High funding rates signal overheated longs — a warning. Negative funding means shorts capitulating — a buy signal. The logic seems solid. We tested it across 6.7 years of BTC data. The results were the opposite of what we expected.
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