Hypotheses
Hyperliquid BCH–LTC Relative Shock Exhaustion: Hedged Multi-Day Convergence
Test whether unusually large, volume-backed relative advances between BCH and LTC partially reverse after the advance stops accelerating. Trade synchronized 4-HOUR perpetual bars, buying the relative laggard and…
Hypothesis
Test whether unusually large, volume-backed relative advances between BCH and LTC partially reverse after the advance stops accelerating. Trade synchronized 4-HOUR perpetual bars, buying the relative laggard and shorting the leader with equal dollar notionals. Both exact bar directories exist locally. This is a conditional sector-relative convergence experiment, not an assumption that the price ratio is permanently cointegrated. Inspiration: [QuantInsti's Principal Component Analysis in Trading](https://blog.quantinsti.com/principal-component-analysis-trading/), specifically separating shared exposure from asset-specific movement; this proposal uses a transparent fixed log ratio rather than fitted PCA. Evaluate only the instruments' overlapping history.
Backtest and paper results are hypothetical. Trading involves risk of loss.