carrymedium risk
Funding Carry (Cross-Sectional, Hyperliquid)
Does a funding carry strategy work on crypto? Backtested on real Hyperliquid perps from 2024-08-15 to 2026-07-05, the default settings earned a Sharpe of 1.69 — +58.8% total return with a 12.8% worst drawdown across 15,494 trades, net of fees, slippage, and funding.
By Keel Research · Data as of 2026-07-05 · how this backtest was produced
Sharpe
1.69
default settings
Total return
+58.8%
Worst drawdown
−12.8%
Trades
15,494
2024-08-15 → 2026-07-05 · net of fees, slippage, and funding · price-only Sharpe 0.50 · 15,494 trades — the numbers already include that turnover cost.
At $1,000, this strategy’s worst historical dip was about $128. Free account, your own Hyperliquid keys — Keel only trades.
How it works
How it works
Perpetual funding is a crowding fee: when longs are over-leveraged they pay shorts to hold the position, and when shorts are crowded the payment flips. This strategy collects that fee. Each day it ranks the top-100 Hyperliquid perpetuals by funding rate, shorts the names paying the richest funding and longs the names paying negative funding, then standardizes the signal across all names so the book is balanced dollar-for-dollar long and short at 1x gross. It rides the funding spread rather than the market's direction. A 10-bar smoothing calms the signal and a 15% drift buffer holds turnover down.
When it works best
Crowded, over-leveraged markets where funding is actually being paid and the spreads between names are wide — most of the 2024-2026 window. Because the book is balanced long and short, the return comes from the funding gap rather than market direction. Over 2024-08-15 to 2026-07-05 the default settings returned +58.7% with a Sharpe of 1.69 and a maximum drawdown of −12.9%, net of fees, slippage, and funding.
When it struggles
When funding compresses toward zero there is little left to collect. It also loses when crowded shorts squeeze — the negative-funding names it is long get sold off while the high-funding names it is short keep running. The price side of the book is only mildly positive on its own; funding is what carries the result. Turnover is high at 15,492 trades over the window, but the funding collected more than covers the fees.
How it’s built
The exact strategy behind this backtest — no black box. Switch to code to see or copy the full definition.
Configuration
Globalsconfig
target_timeframe1d
UniverseassetsTop by Volume · HL Perps · 100 assets100 resolved
Executiontrading
rebalanceBufferedbuffer_threshold0.15buffer_moderelative+2
Pipeline10 steps
PriceDataLoaderData Loader
timeframe15min
TargetTimeframeResamplerData Transform
FundingDataLoaderData Loader
TargetSignalResamplerSignal Transform
methodmean
NegateTransformSignal Transform
EWMATransformSignal Transform
window10
CrossSectionalZScoreSignal Transform
ForecastScalerForecast Mapper
avg_abs_target10
ForecastCapperForecast Mapper
limit20
ForecastWeightNormalizerPosition Sizer
target_leverage1
Globals(target_timeframe="1d")Universe(mode="top_volume", top_n=100, market="perp", lookback="90d", resolved=["AAVE", "ADA", "AERO", "ALGO", "APE", "APT", "AR", "ARB", "ASTER", "AVAX", "AXS", "BCH", "BIO", "BLUR", "BNB", "BTC", "CAKE", "CC", "CHIP", "CRV", "DASH", "DOGE", "DOT", "DYDX", "EIGEN", "ENA", "ETC", "ETH", "ETHFI", "FARTCOIN", "FET", "FIL", "GRAM", "GRASS", "HBAR", "HYPE", "ICP", "INIT", "INJ", "IP", "JTO", "JUP", "KAITO", "LDO", "LINK", "LIT", "LTC", "MEGA", "MEME", "MET", "MON", "MORPHO", "NEAR", "NIL", "ONDO", "OP", "ORDI", "PAXG", "PENDLE", "PENGU", "PNUT", "POL", "POPCAT", "PUMP", "PURR", "PYTH", "RENDER", "RUNE", "SEI", "SKY", "SOL", "SPX", "STABLE", "STRK", "SUI", "SYRUP", "TAO", "TIA", "TON", "TRUMP", "TRX", "UNI", "VIRTUAL", "VVV", "W", "WIF", "WLD", "WLFI", "XLM", "XMR", "XPL", "XRP", "ZEC", "ZEN", "ZORA", "ZRO", "kBONK", "kNEIRO", "kPEPE", "kSHIB"], resolved_at="2026-07-07T19:46:36.522366+00:00")Execution(rebalance="buffered", buffer_threshold=0.15, buffer_mode="relative", rebalance_method="to_edge", min_trade_size=0)Pipeline([ PriceDataLoader(timeframe="15min"), TargetTimeframeResampler(), FundingDataLoader(), TargetSignalResampler(method="mean"), NegateTransform(), EWMATransform(window=10), CrossSectionalZScore(), ForecastScaler(avg_abs_target=10), ForecastCapper(limit=20), ForecastWeightNormalizer(target_leverage=1),], name="funding_carry")Explore the settings
precomputed · updates instantlyAdjust a setting to see the exact backtested result — including the ones that lost money.
Complete 18-cell public cross-product on explicit resolved universes.
Funding smoothing
Rebalance buffer
Pinned universe
Sharpe
1.69
Return
58.8%
Worst DD
−12.8%
Trades
15,494
Heads up: high_turnover.
At $1,000, these settings' worst historical dip was about $128. You land in the editor with this exact setup. Free account, your own keys.
Compare all 18 settings
| Settings | Sharpe | Return | Worst DD | Trades |
|---|---|---|---|---|
| Funding 5 · Rebalance 0.1 · Pinned top60_launch | 1.84 | 77.8% | −8.2% | 12,540 |
| Funding 5 · Rebalance 0.1 · Pinned top100_launch | 1.42 | 47.1% | −12.5% | 20,277 |
| Funding 5 · Rebalance 0.15 · Pinned top60_launch | 1.88 | 78.5% | −8.0% | 11,060 |
| Funding 5 · Rebalance 0.15 · Pinned top100_launch | 1.49 | 49.1% | −12.2% | 17,908 |
| Funding 5 · Rebalance 0.2 · Pinned top60_launch | 1.93 | 79.1% | −7.9% | 9,888 |
| Funding 5 · Rebalance 0.2 · Pinned top100_launch | 1.55 | 50.2% | −11.7% | 15,961 |
| Funding 10 · Rebalance 0.1 · Pinned top60_launch | 1.97 | 86.1% | −9.5% | 10,968 |
| Funding 10 · Rebalance 0.1 · Pinned top100_launch | 1.60 | 55.5% | −13.7% | 18,063 |
| Funding 10 · Rebalance 0.15 · Pinned top60_launch | 2.05 | 89.6% | −8.8% | 9,428 |
| Funding 10 · Rebalance 0.15 · Pinned top100_launchdefault | 1.69 | 58.8% | −12.8% | 15,494 |
| Funding 10 · Rebalance 0.2 · Pinned top60_launch | 2.14 | 92.7% | −8.3% | 8,254 |
| Funding 10 · Rebalance 0.2 · Pinned top100_launch | 1.78 | 61.0% | −12.0% | 13,555 |
| Funding 20 · Rebalance 0.1 · Pinned top60_launch | 2.04 | 94.3% | −9.8% | 9,676 |
| Funding 20 · Rebalance 0.1 · Pinned top100_launch | 1.78 | 64.7% | −14.8% | 16,085 |
| Funding 20 · Rebalance 0.15 · Pinned top60_launch | 2.09 | 96.5% | −9.9% | 8,176 |
| Funding 20 · Rebalance 0.15 · Pinned top100_launch | 1.87 | 68.2% | −14.6% | 13,507 |
| Funding 20 · Rebalance 0.2 · Pinned top60_launch | 2.15 | 99.3% | −9.6% | 7,088 |
| Funding 20 · Rebalance 0.2 · Pinned top100_launch | 1.94 | 70.1% | −14.4% | 11,668 |
The data
Monthly returns
| Month | Return |
|---|---|
| 2024-08 | 0.0% |
| 2024-09 | -1.4% |
| 2024-10 | -1.1% |
| 2024-11 | +18.8% |
| 2024-12 | +7.1% |
| 2025-01 | +6.5% |
| 2025-02 | +12.4% |
| 2025-03 | +2.6% |
| 2025-04 | -1.0% |
| 2025-05 | -6.7% |
| 2025-06 | +1.5% |
| 2025-07 | +2.4% |
| 2025-08 | +6.3% |
| 2025-09 | -4.0% |
| 2025-10 | -0.2% |
| 2025-11 | +0.3% |
| 2025-12 | +1.6% |
| 2026-01 | +5.2% |
| 2026-02 | +3.3% |
| 2026-03 | -0.5% |
| 2026-04 | +1.9% |
| 2026-05 | -4.6% |
| 2026-06 | +4.1% |
| 2026-07 | -0.8% |
Which assets it traded
| Avg allocation | Days held | % of time held | Asset |
|---|---|---|---|
| 0.0077 | 689 | 100 | APT |
| -0.0072 | 689 | 100 | AR |
| 0.0088 | 689 | 100 | ENA |
| -0.0094 | 689 | 100 | TAO |
| -0.0019 | 689 | 100 | TON |
| -0.0012 | 689 | 100 | WLD |
| -0.0131 | 688 | 99.85 | AAVE |
| -0.0056 | 688 | 99.85 | BTC |
| 0.0036 | 688 | 99.85 | FET |
| -0.0046 | 688 | 99.85 | HBAR |
| 0.0049 | 688 | 99.85 | JTO |
| -0.0153 | 688 | 99.85 | POPCAT |
| -0.0096 | 688 | 99.85 | UNI |
| -0.0046 | 688 | 99.85 | kBONK |
| 0.0055 | 687 | 99.71 | APE |
| 0.0063 | 687 | 99.71 | DOT |
| 0 | 687 | 99.71 | EIGEN |
| 0.0013 | 687 | 99.71 | FIL |
| -0.0139 | 687 | 99.71 | LDO |
| 0.0032 | 687 | 99.71 | SUI |
| 0.0053 | 687 | 99.71 | TIA |
| -0.0024 | 687 | 99.71 | ZRO |
| -0.01 | 687 | 99.71 | kPEPE |
| 0.0095 | 687 | 99.71 | kSHIB |
| -0.0028 | 686 | 99.56 | CRV |
| 0.0045 | 686 | 99.56 | ETC |
| 0.0008 | 686 | 99.56 | ETHFI |
| 0.0083 | 686 | 99.56 | JUP |
| -0.0099 | 686 | 99.56 | PENDLE |
| 0.007 | 686 | 99.56 | STRK |
| 0.0064 | 686 | 99.56 | TRX |
| 0.0084 | 686 | 99.56 | W |
| -0.0061 | 686 | 99.56 | WIF |
| -0.0012 | 686 | 99.56 | XRP |
| 0.0025 | 685 | 99.42 | AVAX |
| -0.008 | 685 | 99.42 | NEAR |
| 0.0015 | 685 | 99.42 | ONDO |
| 0.0079 | 685 | 99.42 | OP |
| 0.0024 | 685 | 99.42 | SOL |
| 0.0084 | 684 | 99.27 | ADA |
| 0.0088 | 684 | 99.27 | BCH |
| 0.0063 | 684 | 99.27 | BLUR |
| 0.0087 | 684 | 99.27 | MEME |
| -0.0006 | 684 | 99.27 | ZEN |
| -0.0007 | 683 | 99.13 | ETH |
| -0.0083 | 683 | 99.13 | LTC |
| -0.0051 | 683 | 99.13 | RUNE |
| 0.0131 | 683 | 99.13 | SEI |
| 0.0034 | 682 | 98.98 | ARB |
| -0.0038 | 682 | 98.98 | CAKE |
| -0.011 | 682 | 98.98 | LINK |
| -0.0051 | 682 | 98.98 | ORDI |
| -0.0053 | 682 | 98.98 | RENDER |
| 0.0056 | 681 | 98.84 | BNB |
| -0.0048 | 680 | 98.69 | DOGE |
| -0.0013 | 680 | 98.69 | DYDX |
| 0.0051 | 679 | 98.55 | INJ |
| 0.0081 | 676 | 98.11 | PYTH |
| 0.0042 | 654 | 94.92 | POL |
| 0.0015 | 616 | 89.4 | kNEIRO |
| 0.002 | 613 | 88.97 | GRASS |
| -0.0197 | 608 | 88.24 | PURR |
| 0.0062 | 598 | 86.79 | PNUT |
| 0.0113 | 584 | 84.76 | XLM |
| -0.0173 | 573 | 83.16 | HYPE |
| 0.0005 | 571 | 82.87 | ALGO |
| 0.002 | 563 | 81.71 | VIRTUAL |
| -0.0206 | 562 | 81.57 | FARTCOIN |
| 0.0014 | 558 | 80.99 | PENGU |
| 0.0107 | 547 | 79.39 | BIO |
| -0.0043 | 539 | 78.23 | SPX |
| 0.0129 | 533 | 77.36 | TRUMP |
| -0.0022 | 532 | 77.21 | MORPHO |
| 0.0077 | 523 | 75.91 | VVV |
| 0.0144 | 507 | 73.58 | IP |
| 0.0168 | 498 | 72.28 | KAITO |
| -0.0017 | 466 | 67.63 | NIL |
| -0.0048 | 454 | 65.89 | PAXG |
| 0.0088 | 438 | 63.57 | ZORA |
| 0.007 | 435 | 63.13 | INIT |
| -0.0065 | 374 | 54.28 | SYRUP |
| -0.0135 | 358 | 51.96 | PUMP |
| 0.0077 | 316 | 45.86 | WLFI |
| -0.0133 | 313 | 45.43 | XPL |
| 0.0055 | 291 | 42.24 | SKY |
| -0.0108 | 289 | 41.94 | ASTER |
| -0.0025 | 276 | 40.06 | ZEC |
| -0.0034 | 269 | 39.04 | MON |
| -0.0112 | 268 | 38.9 | MET |
| -0.0106 | 255 | 37.01 | MEGA |
| -0.0095 | 247 | 35.85 | CC |
| 0.0074 | 237 | 34.4 | ICP |
| 0.0012 | 235 | 34.11 | AERO |
| 0.012 | 209 | 30.33 | STABLE |
| -0.0139 | 194 | 28.16 | LIT |
| -0.0192 | 171 | 24.82 | XMR |
| 0.0165 | 167 | 24.24 | AXS |
| 0.005 | 167 | 24.24 | DASH |
| 0.0189 | 74 | 10.74 | CHIP |
| -0.019 | 3 | 0.44 | GRAM |
What this is: a historical backtest on real Hyperliquid market data, net of fees, slippage, and funding. Its worst historical drawdown was 12.8% — expect drawdowns of that order or worse. Past performance does not predict future results, and this is not investment advice. Size your account so a full drawdown is survivable.