How does MagicTradeBot choose symbols for Funding Farming?

MagicTradeBot automatically selects symbols for Funding Farming based on funding rate profitability and user-defined filters. This ensures that the bot targets the most profitable and low-risk opportunities.

🔹 Symbol Selection Process

  1. Rank by Funding Rate

    • The bot scans all eligible symbols with both Spot and Futures markets
    • Symbols are ranked by their positive funding rate, from highest to lowest

  2. Apply Funding Rate Threshold

    • Only symbols with a funding rate above your configured threshold are considered
    • Example: funding_rate_threshold: 0.03 → only symbols with ≥3% funding rate are eligible

  3. Select from Top Symbols

    • The bot picks symbols from the top N ranked symbols as defined by max_symbols_to_pick

    • Example:

      • max_symbols_to_pick: 5 → bot chooses from the top 5 highest funding rate symbols
      • Allows control over exposure and diversification

🔹 Key Parameters Influencing Selection

Parameter Purpose
funding_rate_threshold Filters out symbols with low funding profitability
max_symbols_to_pick Limits the pool of symbols the bot will consider for trading
Symbol liquidity & volatility Bot prefers highly liquid, stable symbols to minimize risk

🔹 Practical Example

  1. Bot scans all BTC, ETH, and top-cap alt symbols
  2. Funding rates (per 8-hour interval):
Symbol Funding Rate
BTCUSDT 0.035
ETHUSDT 0.028
SOLUSDT 0.031
ADAUSDT 0.025
  1. Funding rate threshold = 0.03
  2. Eligible symbols: BTCUSDT (0.035), SOLUSDT (0.031)
  3. max_symbols_to_pick = 2 → bot selects BTCUSDT and SOLUSDT for Funding Farming

🔹 Key Takeaways

  • Ranking: Symbols are sorted by highest positive funding rate
  • Filtering: Only symbols above the funding rate threshold are eligible
  • Selection: Bot picks from the top N symbols, ensuring profitable and manageable trades
  • Goal: Maximize funding fee profits while minimizing exposure and risk

📎 Related Topics