Little seal has a habit of detailed daily bookkeeping, all the data involved in this post is true. The bookkeeping is done using the iPhone's built-in notes, which is very convenient, and mathematical calculations can be done directly inside:
$BAY , $JCT , $DGRAM review
Actual brush: 2,102,020.94÷4+50125.56 = 575,630.795, where 2,102,020.94 is the total amount under the alpha fourfold reward status, and 50125.56 is the amount after losing the fourfold reward on the last day of JCT.
Wear and tear (caused by handling fees, price differences, holding positions, etc.): -140.542
Activity rewards (after deducting handling fees): 11.18815*0.9999+45.08475734*0.9999+22.12489656*0.9999 = 78.39
Hedge income (after deducting funding fees and transaction fees): 44.2001+20.1021+24.93-0.0382549-0.0572916 = 89.137
Nominal total profit: (-140.542+78.39+89.137) = 26.985
Actual total profit: 134.587u
Why have both nominal and actual profits?
As long as you are still playing alpha, even if you don't participate in the competition, you still need to trade other coins, simply deducting 140.542 in wear and tear is not fair. Additionally, the last day of this competition's jct is single alpha points, which brought additional costs.
What really should be noted is the additional wear and tear brought by participating in the competition. If you don’t participate in the competition, the ideal wear and tear for using the most liquid 4x coin to earn equivalent scores is:
(2,102,020.94÷4+50125.56÷4)×0.00019999 = 107.602,
As long as you still play alpha, this part of the cost cannot be avoided. So the fair actual total profit is: -140.542+107.602+78.39+89.137=134.587u
Equivalent to earning three 44u big hairs, do you think it’s worth it?🤣🤣
LAB review
Actual transaction: 28262.99+66338.12+26076.21 = 120,677.32
Wear and tear (transaction fees, price differences, holding orders, etc.): -36.255
Activity reward (after deducting transaction fees): 69.20054763*0.9999 = 69.194
Hedging order profit (not deducting funding fees and transaction fees): 7.14555654
Pure short profit (not deducting funding fees and transaction fees): 30.02507344
Total funding fees and transaction fees for hedging and shorting: -0.37266405
Nominal total profit (excluding short income): 69.20054763*0.9999+ 7.1455565-36.255-0.37266405 = 39.712
Actual total profit (excluding short income): 39.712-(36.225-(28262.99+66338.12+26076.21)/4*0.00019999) = 9.521
Actual total profit (including short income): 9.512+30.02507344 = 39.537
Actual total profit calculation logic: Exclude additional wear and tear caused by single alpha coins.
This is the downside of participating in single alpha coin competitions, which inherently requires more wear and tear; if not managed well, it can easily backfire. If I hadn't shorted additionally, the actual profit would only be a thin 9.52u.
Some supplements:
In this competition, the biggest surprise occurred during the hedging phase, especially regarding funding fees.
First of all, Bay initially had a maximum position limit next door, allowing only 400 pieces, so I couldn't fully hedge. Later, this limit was lifted, but I didn't go back to fill it. At that time, I felt the cost-effectiveness was not high, but I didn't expect Bay to drop like that.
The most disgusting thing is DGRAM, where I faced high funding fees throughout the later period, forcing me to close the hedging order early. But I calculated today that if I stubbornly resisted the funding fees, I would pay no more than 13.5 in funding fees, but could earn (0.0062-0.0021)*10500 = 43.05 more.
Although it feels a bit like hindsight, and there is a bit of metaphysics involved, it seems that stubbornly resisting funding fees is not necessarily the worst strategy.
Other supplements: Regarding funding fee statistics
Other exchanges usually help calculate the funding fees for a certain contract position, which is clear at a glance.
However, Binance contract funding fees do not clearly calculate for a specific position, but rather for multiple contract positions and various coins mixed together, making it very complicated to calculate. You need to export the funding flow excel and then calculate it yourself. I’m too lazy to open the computer to export, but it can be exported from the iPhone, and then I can write a simple program to execute in scriptable. If you're interested, I can write a post to share.
