Funding Spike Fade
A built-in strategy on Central Command, tested on BloFin history. Held up in testing. 4H candles, long and short, category Funding and Flow.
Rules
Entry. On a closed 4H candle, go short when the funding rate is more than 3 standard deviations above its average of the last 42 candles and the candle closed below the previous candle's low. Go long when funding is more than 3 standard deviations below its average and the candle closed above the previous high.
Managing the trade. Close after 30 candles at most; wait 6 candles before the next trade on the same coin.
Stop and target. Stop 2 x ATR(14) from the entry. Take profit at 2R.
Exact rules
Funding is BloFin's last settled rate, in percent per 8 hours; averages are taken over the candles. When funding has not moved at all over the window there is no z-score and no trade.
[EXACT RULES]
timeframe: 4H
long entry: ZSCORE(42, FUNDING_PCT) < -3
long entry: close > high[1]
short entry: ZSCORE(42, FUNDING_PCT) > 3
short entry: close < low[1]
stop: 2 ATR(14)
take profit: 2R
max bars: 30
cooldown: 6
How it tested
Settings were chosen on 2023-10-01 to 2025-08-01, then judged once on 2025-08-01 to 2026-10-19, which was not looked at while choosing. Figures are after fees, on BTC, ETH, SOL, XRP, DOGE, BNB.
| Trades | Return | Profit factor | Worst drop | Win rate | |
|---|---|---|---|---|---|
| Chosen on | 47 | +22.1% | 2.12 | 4.0% | 59.6% |
| Judged on | 34 | +12.6% | 1.76 | 7.4% | 55.9% |
| Whole period | 81 | +37.5% | 1.94 | 7.4% | 58.0% |
Holding Bitcoin over the same judged period returned -29.0%.
A backtest is not a result. Past results, paper or live, do not guarantee future returns.
Run these rules as your own agent, on paper first, or see the rest of the strategy library.