index-long-shorthigh riskindex
Long HYPE / Short Alts Index (Market-Neutral)
Does a long HYPE / short alts strategy work? Backtested on real Hyperliquid perps from 2024-08-15 to 2026-07-05, the default settings earned a Sharpe of 1.17 — +125.3% total return with a 42.4% worst drawdown across 238 trades, net of fees, slippage, and funding.
By Keel Research · Data as of 2026-07-05 · how this backtest was produced
Sharpe
1.17
default settings
Total return
+125.3%
Worst drawdown
−42.4%
Trades
238
2024-08-15 → 2026-07-05 · net of fees, slippage, and funding · price-only Sharpe 1.31 · these are the default settings, not a hand-picked best case.
At $1,000, this strategy’s worst historical dip was about $424. Free account, your own Hyperliquid keys — Keel only trades.
How it works
How it works
HYPE is the native token of Hyperliquid, the exchange whose growth has outrun the broader altcoin complex over 2024–2026. This strategy expresses one structural view: HYPE outperforms the field. It holds HYPE long at half the book and shorts an equal-weight basket of five large alts — SOL, BNB, XRP, ADA, and AVAX — at the other half, combining into a roughly 1.0-gross, dollar-neutral position. There is no timing: the view is held continuously and rebalances only when a leg drifts past a 10% buffer, keeping turnover low at 238 trades. Because the two sides are dollar-balanced, the return comes from the spread between HYPE and the alts, not the direction of crypto overall.
When it works best
It profits whenever HYPE outperforms the alt basket, which held across most of the sampled window. Because the book is dollar-neutral, this works whether the complex is rising or falling — HYPE simply needs to beat the basket on the margin, so it can hold up in broad sell-offs that sink long-only crypto.
When it struggles
The caveats matter here. This is a concentrated single-name long — HYPE is about half the gross book — so the result leans heavily on one token's past run-up and is backward-looking; nothing adapts if that outperformance fades. It is dollar-neutral but not risk-neutral: HYPE is far more volatile than the diversified short basket, so portfolio risk is dominated by HYPE. When HYPE lags the field, losses come fast — the worst drawdown was 42.4%, a property of the view the settings cannot dodge. Size it as a concentrated Hyperliquid-ecosystem bet, not a diversified market-neutral product.
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_timeframe1dbar_offset12h
UniverseassetsManual · HL Perps · 6 symbols6 resolved
Executiontrading
rebalanceBufferedbuffer_threshold0.1
Pipeline4 steps
PriceDataLoaderData Loader
timeframe15min
TargetTimeframeResamplerData Transform
Parallel2 branches
long_leg
AssetSelectUniverse Filter
symbols["HYPE"]
ConstantForecastForecast Mapper
value10
ForecastWeightNormalizerPosition Sizer
target_leverage0.5max_weight1
short_leg
AssetSelectUniverse Filter
symbols["SOL","BNB","XRP","ADA","AVAX"]
ConstantForecastForecast Mapper
value-10
ForecastWeightNormalizerPosition Sizer
target_leverage0.5max_weight0.3
WeightConcatenatorForecast Composer
Globals(target_timeframe="1d", bar_offset="12h")Universe(mode="manual", symbols=["HYPE", "SOL", "BNB", "XRP", "ADA", "AVAX"], market="perp", resolved=["HYPE", "SOL", "BNB", "XRP", "ADA", "AVAX"], resolved_at="")Execution(rebalance="buffered", buffer_threshold=0.10)Pipeline([ PriceDataLoader(timeframe="15min"), TargetTimeframeResampler(), { "long_leg": [ AssetSelect(symbols=["HYPE"]), ConstantForecast(value=10), ForecastWeightNormalizer(target_leverage=0.5, max_weight=1.0), ], "short_leg": [ AssetSelect(symbols=["SOL", "BNB", "XRP", "ADA", "AVAX"]), ConstantForecast(value=-10), ForecastWeightNormalizer(target_leverage=0.5, max_weight=0.30), ], }, WeightConcatenator(),], name="long_hype_short_alts_index")Explore the settings
precomputed · updates instantlyAdjust a setting to see the exact backtested result — including the ones that lost money.
Rebalance buffer
Short basket breadth
Sharpe
1.17
Return
125.3%
Worst DD
−42.4%
Trades
238
At $1,000, these settings' worst historical dip was about $424. You land in the editor with this exact setup. Free account, your own keys.
Compare all 4 settings
| Settings | Sharpe | Return | Worst DD | Trades |
|---|---|---|---|---|
| Rebalance 0.1 · Short 5altdefault | 1.17 | 125.3% | −42.4% | 238 |
| Rebalance 0.05 · Short 5alt | 1.17 | 123.2% | −42.5% | 539 |
| Rebalance 0.15 · Short 5alt | 1.14 | 119.8% | −42.8% | 143 |
| Rebalance 0.1 · Short 3alt | 0.99 | 92.3% | −42.5% | 147 |
The data
Monthly returns
| Month | Return |
|---|---|
| 2024-08 | 0.0% |
| 2024-09 | -6.3% |
| 2024-10 | +1.9% |
| 2024-11 | -31.8% |
| 2024-12 | +45.3% |
| 2025-01 | -6.1% |
| 2025-02 | +3.0% |
| 2025-03 | -24.6% |
| 2025-04 | +16.1% |
| 2025-05 | +29.8% |
| 2025-06 | +15.6% |
| 2025-07 | -9.4% |
| 2025-08 | -0.5% |
| 2025-09 | -2.4% |
| 2025-10 | +7.0% |
| 2025-11 | -1.9% |
| 2025-12 | -6.2% |
| 2026-01 | +15.4% |
| 2026-02 | +7.5% |
| 2026-03 | +15.5% |
| 2026-04 | +3.0% |
| 2026-05 | +32.0% |
| 2026-06 | +14.6% |
| 2026-07 | -1.5% |
Which assets it traded
| Avg allocation | Days held | % of time held | Asset |
|---|---|---|---|
| -0.1 | 686 | 99.56 | ADA |
| -0.1 | 686 | 99.56 | AVAX |
| -0.1 | 686 | 99.56 | BNB |
| -0.1 | 686 | 99.56 | SOL |
| -0.1 | 686 | 99.56 | XRP |
| 0.5 | 574 | 83.31 | HYPE |
What this is: a historical backtest on real Hyperliquid market data, net of fees, slippage, and funding. Its worst historical drawdown was 42.4% — 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.