Interview with LA JAR:An efficient and safe funding arbitrage tool for cryptocurrencies
LA JAR personal integration patent procedure From exploration to integration, use personal power to innovate ，What is “ funding rate arbitrage “?
Interview with personal programmer today
Question:LA jar, what is funding rate arbitrage?
Answer:Hedging arbitrage, also known as hedging spread arbitrage, statistical arbitrage, is a kind of quantitative hedging strategy. It is also divided into forward arbitrage and reverse arbitrage. varieties, using the relatively stable changes in the price difference between the two to carry out hedging transactions, so as to obtain profitable trading methods.
Question:The above is just the way of hedging, how is the arbitrage, LA JAR
Use statistical methods to find two highly correlated and consistent varieties in the market, and find out their statistical laws. When the spread widens and deviates from its historical normal value, it is expected that the spread will return to the normal level. At this time, short the one with the highest price. At the same time, if you go long and the price is low, you will short the spread. When the spread converges to a normal level, the winning party must be greater than the losing party, and the overall profit will be realized, and then close the position to earn the income when the spread converges. The higher the price is, the shorter the lower price is, the longer the spread. When the spread returns to the normal value, the position will be closed to make a profit. The principle is to use the arbitrage opportunity to obtain risk-free or low-risk returns.
Question:Is this your program written by you independently? LA JAR
Answer:”Funding rate arbitrage” is similar to “carry trading” or “hedging” in traditional finance. Hedge funds or hedge funds use similar methods to make money from arbitrage. Because this arbitrage model has lower risk and more stable investment than spot or contract transactions, fund companies almost only accept high-asset clients, and the entry threshold is very high.
I am an independent programmer, integrating all resources and quotations outside the network, so that customers can arbitrage funds more freely.
The “funding rate arbitrage” of cryptocurrencies is to use the futures and spot hedging of long and short orders, without earning the price difference, and earning “funding costs” similar to interest. However, due to the different calculation methods of contract commodity capital costs on different exchanges, which also extend different trading strategies, there will be a gap between the risks they need to take and the rewards they get.
Since the “funding rate arbitrage” is still mainly based on trading behavior, it may still result in the risk of loss. It is suitable for prudent investors and can be used as a stable and profitable investment strategy under the condition of adequate risk control.
Question:May I ask if this program is mainly for cryptocurrencies or use all markets, LA JAR
Answer:The technical operation chooses to use the world’s largest cryptocurrency derivatives exchange. Its perpetual contract calculates the capital cost every hour. When the rate reverses or the currency price fluctuates sharply, investors can react immediately to reduce the probability of loss or liquidation, making it easier to control risks. In addition, the feature of “spot can be used as a margin” can not only make investors’ funds more efficient, but also effectively reduce the probability of liquidation. It is the preferred capital rate arbitrage exchange for stable investors. It can also be used in traditional financial markets and ordinary traders
Question:La jar , could you please show your integration process and profitability so that our readers can learn more about it.
Answer:Because the application and certification of intellectual property rights have been carried out after the program is developed, you can learn about it on my official website. I will disclose the parameters used in my program here for developers to study and progress together.
filter========== Variable filter =========
desc3==========ATR Indicator =====
hgg========== Stochasti Indicator =====
gtdd==========CCI Indicators =====
Thank you LA JAR for accepting our interview and disclosing personal program parameters today, thank you LA JAR.
Contact site: www.mrla.pro
Contact number:+886 0936866000
Contact company:nanshangold Co., Ltd.