Research notes · Quantitative crypto

Edge research, written by the people who build it.

No clickbait, no AI-generated filler. Each article is a working note from our quant desk — what worked, what didn't, and the data behind both. We publish for traders who care about how strategies actually behave.

Latest · 2026-06-09
Quant·2026-06-11·11 min read

How to spot a fake crypto backtest track record — 7 red flags

A spectacular backtest is usually a statistical illusion, not fraud. Friction, look-ahead bias, Sharpe inflation, cherry-picked windows — the seven red flags and five questions that expose a fabricated edge in 30 seconds.

Methodology·2026-06-09·10 min read

Why prediction market accuracy and bet profitability are two different things

A 25% win-rate strategy can be far more profitable than an 80% win-rate one. The math behind underdog bets on Polymarket and why directional accuracy is the wrong headline metric.

Methodology·2026-06-09·10 min read

How to read a prediction market AI score — AI probability vs market price

AI says 38%, market says 12%. Buy YES or NO? The 5-step routine for interpreting AI scoring outputs against Polymarket prices and converting them into rational bets.

Risk·2026-06-09·11 min read

Polymarket Kelly criterion bet sizing — the math for variance-adjusted stakes

Full Kelly will eventually ruin you. Tenth-Kelly with hard caps is the right framework for prediction market sizing — with the worked example math.

Microstructure·2026-06-09·11 min read

Crypto market regime detection — building a 4-state classifier from public data

Every strategy works in some regimes and fails in others. The 4-state classifier you can build in 30 minutes from free Binance APIs, with the per-state strategy mapping.

2026-06-08
Microstructure·2026-06-08·10 min read

Mark price vs last price on Binance Futures — why your trade closed when the chart said otherwise

The chart never touched your stop. Your position closed anyway. Mark price runs liquidations and SL triggers, not last price. Three scenarios where you get caught and four ways to place stops that survive mark-price wicks.

Infrastructure·2026-06-08·10 min read

Algorithmic trade execution latency on Binance — measuring and reducing the gap

The gap between signal and fill is where retail algos lose 0.5-2% per trade. The four latency components, how to measure each, and what's realistic to optimize without colocation.

Strategy·2026-06-08·11 min read

Memecoin futures listings — the 48-hour playbook for fading post-listing pumps

The structural pattern is the same almost every time. Four phases, when to enter and when to wait. Most retail fades fire too early. Here is the actual playbook.

Discipline·2026-06-08·10 min read

Trading without a thesis — why 'gut feel' alpha collapses in crypto

A written 5-component thesis per trade is what separates compounding traders from blow-ups. Why crypto kills gut-feel faster than equities, and how to retrofit thesis discipline onto existing trading.

2026-06-07
Risk·2026-06-07·10 min read

How to size a crypto futures position by account risk — the 3-rule framework

Per-trade risk cap, concurrent exposure cap, drawdown circuit breaker — the three rules professional desks use to turn a chaotic position book into a system that survives losing streaks.

Microstructure·2026-06-07·10 min read

Reading Binance Futures funding history — how to spot regime change before the crowd

The four regimes you can classify from 30 days of funding history alone, and which strategy class works in each. Three traps that turn funding signal into noise.

Methodology·2026-06-07·10 min read

Sustainable crypto trading strategy vs a lucky streak — 6 statistical filters

A 12-month +180% return looks impressive. It is also exactly the return profile of a strategy that got lucky. The six filters that distinguish real edge from sampling variance.

Microstructure·2026-06-07·11 min read

Why your stop loss keeps getting hunted — the order book mechanics retail doesn't see

It's not bad luck or 'manipulation' — it's the predictable mechanics of clustered stops meeting market makers in thin books. The 5 places stops cluster and how to place yours where they aren't the easy meal.

Infrastructure·2026-06-07·10 min read

Binance vs Bybit vs OKX vs Hyperliquid 2026 — best venue for systematic trading

API quality, depth, fees, withdrawal reliability, counterparty risk — the only five things that matter for systematic crypto trading, scored across the four major venues with an honest scorecard.

Microstructure·2026-06-07·10 min read

Order book imbalance as a leading indicator for crypto futures

How to compute OBI on Binance, what thresholds actually predict short-term price moves, and the four traps — spoofing, sub-tick games, dislocation, latency — that turn the signal into noise.

Derivatives·2026-06-07·10 min read

Coin-margined vs USDT-margined futures — when each one actually makes sense

Coin-margined contracts amplify dollar exposure non-linearly. A "1× long" is effectively 2× in dollar terms. When that's useful, when it's dangerous, and why our strategies run USDT-margined only.

Discipline·2026-06-07·9 min read

Crypto trading journal — what to actually log beyond PnL

Most retail journals are 90% useless because they log the wrong things. The 12 fields that correlate with improvement, 6 that don't, and post-trade review structure from professional desks.

Market Structure·2026-06-07·11 min read

Liquidation cascades on Binance Futures — anatomy of a forced-selling event

A coin drops 12% in ten minutes on three times its average volume. By the time the chart looks broken on Twitter, the bounce has already started. The five-step mechanical sequence behind cascade events and how to read them in real time.

Market Structure·2026-06-07·10 min read

Open interest divergence — what rising OI in a falling market tells you

The four-cell map of price × OI. Confirmation cells vs divergence cells. Why OI moving against price is where the asymmetric edge lives, and the three traps retail traders fall into reading OI charts.

Strategy·2026-06-07·9 min read

Why dollar-cost averaging fails in trending crypto markets

DCA is sold as the safe option. Cycle-by-cycle math from 2015–2026 shows it actually underperforms lump-sum 7 years out of 11. What DCA actually optimizes for, and three strategies that beat it in real markets.

Risk·2026-06-07·10 min read

The hidden cost of high leverage on Binance USDT-M Futures

25× and 50× look like more upside for the same capital. They aren't. Three invisible taxes — funding decay, liquidation tax, forced-exit slippage — with the actual numbers across a 30-day hold at four leverage levels.

Insider series · How we built it
Insider·2026-05-04·9 min read

Killing BURST — when 7 production triggers told us no

The autopsy of BURST. Sound theory, 7 live triggers, then a 90-day synthetic backtest with 256 trades that confirmed PF 0.72. We killed it. Honest post-mortem on why.

Insider·2026-05-04·7 min read

The 8-hour timeout bug — why three user positions hung 33 hours

A subscriber asked why their positions were still open after two days. The strategy spec defined a hold timeout, but it was registered for firm trades only — not user trades. Honest post-mortem.

Insider·2026-04-27·9 min read

Why we killed ORACLE — the autopsy of whale-mirror trading

ORACLE was our Hyperliquid CONFLUENCE detector. Live: -8.94% in 7 days. Why mirror-trading whales is conceptually broken regardless of the wallet selection.

Insider·2026-05-04·10 min read

The path-dependent backtest — what most crypto track records hide

Most "verified" crypto backtests use vectorized simulation that mathematically can't lose. Path-dependent is the right answer. Lower numbers, harder to fake, almost nobody publishes them. How we run ours.

Strategy & education
2026-05-07·Industry critique·10 min read

Why most crypto signals lose retail money

Most paid signal services bleed subscriber capital despite positive screenshots. The structural math behind why — latency gap, slippage, execution timing penalty, asymmetric incentives. Not all services are scams; the math is rigged regardless.

2026-05-13·Backtest methodology·13 min read

Walk-forward analysis — the only backtest method that doesn't lie

A normal backtest measures hindsight. Walk-forward measures real-time edge — what you'd have made if deploying live as the data arrived. Most published strategies degrade 60%+ IS→OOS. The methodology, mistakes, and red flags.

2026-05-12·Risk management·13 min read

Risk of ruin math for crypto traders — why bet sizing decides survival

Edge is the headline metric. Sizing decides whether you survive long enough to collect it. The Kelly math, applied to realistic crypto strategies, with worked examples showing why most retail accounts die from sizing, not from edge.

2026-05-11·Industry critique·13 min read

Spotting fake backtest track records — a practical skeptic's guide

Most published crypto backtests are fake or massaged. Survivorship bias, vectorized fills, look-ahead leak, overfitting, period cherry-picking. The five most common cheats and the six-question checklist to detect them in 10 minutes.

2026-05-10·Microstructure·12 min read

Cross-exchange OI divergence — what positioning across venues actually tells you

When the same coin's OI rises on Bybit but falls on OKX, that's two different cohorts of traders making opposite decisions. The four canonical patterns, the math, and why this is a confirmer — not a system.

2026-05-09·Strategy·13 min read

The token unlock calendar trade — why cliff unlocks bleed price (and what doesn't)

Cliff unlocks dilute float overnight, often 5-30%. Many bleed price for 1-7 days. The trade is well known and still works — partly because retail buys the dip wrong. Setup, examples, failure modes, why it's not free money.

2026-05-08·Microstructure·12 min read

Reading the aggregate-trade tape on Binance

aggTrade is the raw transaction feed of every executed trade. Most retail ignores it; institutions read intent there. What's in the feed, what patterns matter, and how to ingest it programmatically with working WebSocket code.

2026-05-04·Funding rates·9 min read

Funding-rate arbitrage explained — how delta-neutral yield actually works

A working primer on funding-rate arbitrage on USDT-margined perpetual futures. Why funding rates exist, how to capture them with a delta-neutral position, what the realistic APY looks like in 2026, and where retail gets it wrong.

2026-05-04·Basis trades·7 min read

Cash-and-carry in crypto — the basis trade for the perpetual era

Classic basis arbitrage adapted for crypto. Why dated-futures basis is dead post-CME-launch, how perpetual funding has effectively replaced it, and the structural reason this trade still pays in 2026.

2026-05-04·Comparison·8 min read

Best funding rate exchanges in 2026 — Binance, Bybit, Hyperliquid, OKX, Bitget

Side-by-side comparison of the five major venues for funding-rate trading. Funding intervals, fee structures, OI quality, withdrawal speed, and which venue currently pays the highest sustainable APY for delta-neutral capital.

2026-05-04·Hyperliquid·10 min read

Hyperliquid funding rates — the 1-hour interval that changes the game

Hyperliquid funds hourly, not every 8 hours. That single design choice turns it into the highest-yielding venue for funding harvesting — and the most punishing if you don't watch the rate decay. A practical playbook.

2026-05-04·Event-driven·8 min read

Trading the Binance monitoring tag — why retail loses this asymmetric short

When Binance flags a coin for monitoring, the path is statistically one direction. The trade is not finding the edge — it is arriving at it before the human reacts. Why the move is half-done by the time it hits Telegram, and how we shave the latency to under 3 seconds.