As a recognized low-risk strategy, statistical arbitrage has the advantages of high liquidity, low risk and predictability.

The basic idea is mean reversion, that is to say, if there is some kind of stable relationship between the prices of two highly correlated investment targets, then when their prices deviate from the trend, there will be arbitrage opportunities, because this divergence The trend will be corrected in the coming period of time.

Our arbitrage strategy uses the same currency spot and contract, perpetual contract and quarterly delivery, and price differences between different trading platforms due to market fluctuations to capture stable profit opportunities.

*Due to the particularity of perpetual contracts, they are alternatives to spot contracts to a certain extent, so perpetual and delivery hedging are both simulated futures and spot strategies, but in reality, both are delivery contracts with convenient leverage conditions and belong to inter-period Arbitrage, extreme market conditions are prone to extreme premiums due to liquidation and other factors.

When the Bitmex-ETH quarterly contract is opened, there is a large price difference between Bitmex's ETH quarterly contract price and binance's ETH perpetual price. At this time, hedging and opening a position are carried out. Since the quarterly contract is often higher than the perpetual contract, the operation Usually short the current quarter contract and long the perpetual contract (the opposite is true in the bear market). During the whole quarter, the price difference gradually converges and gradually accumulates income.