← all research
REJECTED

"Funding-extreme entry overlay on ETH gate60 — REJECTED (2026-08-20)"

2026-08-20

One-shot test of the last untested external-data hypothesis: suppress trend entries when perp funding is elevated (crowded longs). Data: Binance ETHUSDT 8h funding, 2021-01-01 → 2026-08-17 (data/raw/external/binance_vision/ funding_ETHUSDT.csv), full coverage of the phase-13 window. Causal features (trailing mean of last K stamps at close[t]), fixed absolute thresholds, exits untouched, maker fees, next-open fills. Script: scripts/funding_overlay_test.py.

Baseline reproduced exactly: +15,799 bps / +258.9% / DD −17.4% (cal +4,860 / val +10,938) — harness sanity confirmed against phase 13.

variantnetcompoundedmaxDDcalvalsuppressed-trade PnL
baseline+15,799+258.9%−17.4%+4,860+10,938
K=24h, thr 1bp/8h+11,658+143.9%−24.3%+5,646+6,012+1,261 (11 tr)
K=24h, thr 3–5bp= baseline0 entries blocked
K=72h, thr 1bp/8h+11,338+135.9%−24.3%+5,405+5,933+1,483 (5 tr)
K=72h, thr 3–5bp= baseline0 entries blocked

Verdict

REJECT — the hypothesis is inverted in this data. At the only threshold that actually blocks entries (1 bp/8h ≈ 11% APR), the suppressed trades were net profitable (+1,261 / +1,483 bps): elevated funding at trend-onset marks strong trends, not exhausted ones. Gating those entries cuts net by ~4,100 bps and deepens maxDD (−17.4% → −24.3%). Higher thresholds are no-ops (block zero entries).

This closes the external-data question for crypto: funding/OI/LS/supply data adds nothing as signal (phase 13 §5.7), nothing as entry-risk overlay (this test). Remaining non-predictive uses are monitoring only.