Why I’m Starting This Blog
I’ve spent a lot of time reading about trading strategies that promise huge returns. Most of them rely on predicting where the market will go next.
That’s not what I’m interested in.
What fascinates me is something much smaller: one basis point.
One basis point is only 0.01%. Most people wouldn’t even notice it. But if you’re running the same strategy over and over again, those tiny numbers start to matter.
This blog is where I’ll document my attempt to build a funding rate arbitrage system from the ground up.
I’m not writing this because I think I have all the answers. Quite the opposite. I expect to make mistakes, discover bad ideas, and change my mind along the way. I’d rather document the process than pretend everything works perfectly.
The idea behind the project is simple.
If I can improve execution by one basis point, that’s a win.
If I can reduce fees by half a basis point, that’s another win.
If I can find a slightly better way to deploy capital or automate a task, that matters too.
None of those improvements look exciting on their own, but together they can have a meaningful impact over time.
A thought that keeps coming back to me is this: what if a single extra basis point, captured consistently and compounded over a long period, is worth far more than most people realize?
Whether that’s actually achievable in the real world is another question. Funding rates change, exchanges have different fees, liquidity isn’t unlimited, and there are plenty of risks that don’t show up in a spreadsheet.
That’s exactly what I want to find out.
I’ll be sharing everything here:
* ideas that seem promising
* experiments that fail
* funding rate data
* infrastructure and automation
* exchange API quirks
* execution improvements
* performance metrics
* lessons learned
Think of this as an engineering diary more than a trading blog.
I’m building in public, one basis point at a time.
Let’s see where it goes.
Every Basis Point Matters
One basis point doesn’t sound like much.
It’s just 0.01%.
But when that edge can be captured consistently and compounded every hour, the results become surprisingly large.
Starting with 5,000 USDT:
| 1 bp (0.01%) | ≈ 12,005 USDT | ≈ 7,005 USDT | ≈ 140.1% |
| 2 bps (0.02%) | ≈ 28,824 USDT | ≈ 23,824 USDT | ≈ 476.5% |
The difference between 1 bp and 2 bps is only 0.01% per hour.
Yet over a year, that tiny improvement increases the ending portfolio from 12,005 USDT to 28,824 USDT.
That’s why I care so much about optimization. Lower fees, better execution, faster infrastructure, and smarter capital allocation may each save only a fraction of a basis point—but over thousands of hours, those improvements compound into something much larger.