What does open_trade_before control?

The open_trade_before setting in MagicTradeBot defines how many minutes before the funding snapshot the bot opens a hedged Spot + Futures position.

This parameter helps ensure the bot qualifies for the upcoming funding payment while controlling exposure duration.

๐Ÿ”น How It Works

  1. Timing the Hedged Position

  2. Funding fees are calculated at specific funding intervals (snapshots) in the Futures market

  3. open_trade_before specifies how early the bot should enter the trade to be eligible for the next funding payment

  4. Impact of Opening Earlier

  5. Pros:

    • Ensures the bot is positioned in time to receive funding fees
    • Can capture funding payments even if funding snapshot time is unpredictable or slightly delayed

  6. Cons:

    • Increases market exposure duration
    • Longer exposure may slightly increase risk from price swings, though hedged

๐Ÿ”น Practical Example

Parameter Example Explanation
open_trade_before 120 Open positions 2 hours before funding snapshot
Funding snapshot 12:00 PM Bot opens hedged positions at 10:00 AM
Result Eligible for funding fee at 12:00 PM, positions remain open until close
  • Adjust open_trade_before based on symbol volatility and funding timing

๐Ÿ”น Key Takeaways

  • Purpose: Ensure bot positions are eligible for the upcoming funding payment
  • Earlier opening: Improves eligibility but increases market exposure time
  • Recommendation: Balance early positioning with safe hedge and risk tolerance

๐Ÿ“Ž Related Topics