Updated August 2026 · 6 min read
Assets that have been trending tend to keep trending for a while. A risk-adjusted momentum score measures trend strength divided by volatility — strong trends score high, choppy noise scores low.
Why it's used: Simple, well-studied, and explainable — every entry can be justified with a number.
Perpetual markets charge a funding rate between longs and shorts. When funding is strongly negative, shorts pay longs — holding long earns the carry.
Why it's used: A slow, persistent edge that compounds when combined with a directional filter.
Prices that spike far from their average tend to snap back. The strategy buys dips and sells rips within a range.
Why it's used: Works in sideways markets but needs hard stop-losses (it fails in strong trends).
Placing bids and asks around the mid price to earn the spread.
Why it's used: High frequency, needs deep infrastructure — usually the last strategy to add.
The robust leg combines momentum (60%) and funding carry (40%) over Hyperliquid's top-12 perpetuals by volume. The experimental leg explores additional factors with small allocations — but the production signal stays simple, transparent, and risk-limited.
A strategy you can explain is a strategy you can trust and improve. When the AI says "opened BTC long (momentum z=1.6, funding -0.001%/h)", you can verify it against market data. Black boxes ask for blind faith.
Momentum with hard stop-losses — it's transparent, easy to understand, and every trade has an explicit reason. Paper trade it first to see the behavior before risking capital.
No. Every strategy has losing periods and can fail in changing market regimes. The goal is a positive expected value with controlled downside — not certainty.
Transparency (you understand the signal), explicit risk controls (stop-losses, position caps), and realistic expectations about drawdowns.
Educational content, not financial advice. Risk Disclosure