Quantitative Crypto Insight: A systematic crypto trading strategy using perpetual futures

Tl;dr: Perpetuals futures are financial instruments that have become increasingly popular in the crypto space. Coinbase demonstrates a hypothetical simple delta neutral strategy which takes advantage of positively skewed funding rates in the perpetual futures market to achieve a high return on investment.

By The Coinbase Data Science Quantitative Research Team

Systematic Trading Strategy

A systematic trading strategy is a mechanical way of trading that is aimed at exploiting certain aspects of market inefficiencies to achieve investment goals. These strategies employ disciplined, rule-based trading that can be easily backtested with historical market data. Rule-based trading follows strict, predefined trading methodologies that are not impacted by market conditions.

Systematic trading is a fully grown area of investing that spans a wide range of strategies and asset classes. With the ever-growing crypto market, in which thousands of tokens are being traded and de ..

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