I've been testing out this basis trade where I go long and short on the same asset and am able to earn a nice funding rate.
This tool that David built, called Trader's Bible, is working very well. It makes it easy to access a lot of the information that GMX makes it hard.
Checking on this tool daily to make sure that I have a positive funding rate on my short.
What are the main risks associated with this strategy?
Here are the risks that come to the top of my mind and I count on you guys to let me know if I'm missing something.
- Counterparty risk
- Smart contract risk
- De-Pegging risk
- Funding rate change risk
- oracle risk
Since there is no directional risk with this strategy because it's neutral, what else could possibly go wrong?