I can not because of funding rate go for a particular position. If you make profit in trading, likely the direction taken will not be favoured. Or is that not true?
I have not known if a funding rate would be represented with a positive sign or negative sign where it is counting down, but what I still only think is that long will pay shot when most traders go long which result to perpetual price to be higher than the spot price, while if it is other way and most traders go short, short position traders will pay long position traders.
First things first you need take a look the coin with high funding fee rate, and i see that you are using binance right?
Go to this
https://www.binance.com/en/futures/funding-history/0And then start to pick a coin with high funding rate whether at minus position or plus position usually trader use the funding rate to know the long and short ratio high (+) mean so much trader take a long position high (-) mean so much trader take a short position
After u pick the high funding rate watch the candle and switch lower timeframe 1 minute or 5 minute if funding (+) whale will be take short position and the price will go down for about 30 minutes before countdown, you take short position and then usually you will get profit from your position and after that place stoploss @ the above initial price vice versa
After countdown you will get funding fee @ history tab and the price will continue @ normal stage
This is not always the case, trust me I tried trading it using spot or other exchanges where the funding rate reset is hourly instead of 8hr.
When funding is very high, like 0.5% you would expect the longs to get out before funding and shorts to get out after funding. However if you ever tried trading this, you would find that sometimes it doesn’t move in that direction anyway. Hence not a profitable method.
