Half Automated Futures Cash n Carry on Binance
All current and future subscribers to the monthly/yearly subscriptions get access to this nifty little array:
What does this yield?
What do you do with this?
- Note: this indicates that if you hold a hedged position of DOT-0326 from now til expiry the leg of the hedge will absolutely — without chance of failure — increase in value by 401.987% APY by the time March 26th rolls around (less any temporary losses from funding losses (or plus any temporary gains if in beneficial direction — on the whole, over 1000s of trades, +/- this will equal 0% net difference)) . In an ‘all in’ scenario you’ll get 200.95% APY because the other leg is hedging with perpetuals.
- Choose your own leverage. I’m not responsible if you’re too greedy, and the prices temporarily diverge and you liquidate. Whoops.
- Figure out if DOT-0326 is trading above or below DOT-PERPETUAL.
- We want to buy low, sell high, right?
- In this case, PERPETUAL’s price is below 0326.
- We long PERP and short the futs.
- Over time, we can rest assured that while there might be temporary fluctuations otherwise, the price of the futures contract will eventually (no matter what) approach and converge with the PERP contract.
- The script will send another email once another opportunity is more than 50% of an opportunity above the one that we’re currently trading.
Subscribers will get the first 1/2 emails from when I rerun the script after publishing this.
Arguably nothing more beautiful exists….
Originally published at https://hacks.substack.com.