Hi,
I have a general Question.
I’m thinking about a Hedge Strategie.
let’s say you have 2000USD funds.
I want to split it to 1000 each. With 1000 I like to open a short on Hyperliquid because there you have a very high funding rate which gives you a crazy performance even if you don’t do anything (as long as we have such bullish settup, see screenshot up to 1% per week)
With the other 1000usd I want to buy base and go into a bot. Now my question: can I also go Long with base? I could’t manage to adjust a bot with Base and go long with it only short. If the price goes very bullish I can just sell both positions and the net profit is what I get from the funding + the Bot performance.
I’m interessented in your feedback.
Thanks
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I wrote about this on the telegram group regarding the whale hunter hedge strategy. As long as the short bot is configured to start deals above the average price only, you will be making profits (ignore the negative p&l for short bots, is not a real loss, only opportunity cost).
The other consideration is: is it better to have 2 bots in 1 coin with $1k each or 2 bots per 100 pairs with $10 each bot? I think on the former you are too exposed to fluctiations specific to that one project, and the latter distributes the risk as much as possible but you need a lot of managing. I’m more inclined towards more pairs, at least 10 or so, in order to distribute the risk better.
The last point is regarding the funding fees. We won’t know the effect in paper trading, for that you will need to run a small test (if using the $10 per bot example, maybe just run it with a few pairs to start with).
okay understand.
But my question was more am I able to start a Long Bot with only Base or do I always need Quote.
I created a normal Grid bot on Bybit and Bitget and the bot always buys 50% Base and 50% Quote to start the bot.
This means If I want to start this strategy I would need to buy 1000usd short postion and a 2000usdt bot postion which will be splitted in 50/50 so I have the same amount of base as the one which I go short.
Or do you mean to go short and long with a DCA Bot?
Ah ok I understand your question.
Keep in mind that by default, the base minigrid is the only minigrid placed at the start, and this minigrid contains only sell orders. That means that by default the bot only uses base. If you want to start with 50% base and 50% quote, you need the option “Active minigrids”, set it to 1 and make sure you have one DCA minigrid that is the same as the base minigrid. In this case the bot will start with 50% base and 50% quote.
