Trade Setup

Strategy: S13 Funding Fade — LONG

This strategy exploits extreme funding rates on perpetual futures. When funding is heavily skewed in one direction, overleveraged traders are paying a premium to hold their positions — a condition that often precedes a mean-reversion move as those positions get unwound.

The algorithm detected extremely negative funding rates, meaning shorts were paying a high premium to hold. It went long, anticipating a short squeeze as overleveraged shorts get forced out.

Stop-loss was placed at $32,361 (0.7% risk) and take-profit at $35,029 (9.0% reward), giving a risk/reward ratio of 1:12.6. Leverage: 4x.

Trade Management (TML)

Thesis Score Timeline

Actions

• B14–B20: SL → $32,361 (Breakeven locked)

Why It Worked

The trade was successful — price reached the take-profit target at $35,029 after 20h. The S13 Funding Fade setup played out as expected: the anticipated move materialized and the full profit target of 9.0% was reached.

Without TML

TML adjusted the stop-loss from $30,413 to $32,361, tightening the stop to protect profits.

Details

Field	Value
Entry	$32,132
Exit	$35,029
Stop Loss	$32,361
Take Profit	$35,029
R:R	1:12.6
Leverage	4x
Duration	20h
P&L	+36.08%