Manual Crypto Futures and Spot Hedging with Semi-Automation

Summary

The document describes a semi-automated workflow for manually hedging cryptocurrency futures against spot positions across multiple exchange pairs. A manager collects futures and spot quotes, displays price differences, and provides controls to open or close positive and reverse arbitrage positions. Orders use the relevant bid or ask prices, while account, position, margin, and available balance checks help determine whether a trade can proceed. Contract and spot quantities are adjusted to match exchange requirements and the smaller feasible size.

The author demonstrates opening and closing a hedge in simulated exchange environments. The closing example loses money because the spread gain is too small to cover fees, illustrating that a displayed price difference alone does not establish profitability. The document advises accounting for transaction costs and approximate slippage when choosing a target spread. The strategy relies on platform-specific exchange interfaces and an external multi-symbol library, so it cannot be backtested in the described setup; simulated trading is presented as a way to familiarize users with operation.

Key ideas

• The workflow compares futures and spot quotes across configured symbol pairs.
• Opening and closing controls select opposing futures and spot directions for two arbitrage orientations.
• Margin, balances, existing positions, and exchange quantity rules constrain order sizes.
• A small favorable spread can still produce a loss after fees and slippage.
• The described platform-specific implementation is tested through simulation rather than backtesting.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.