Barracuda Strategy

🐟 BARRACUDA v1.0.1 — Funding Decay Collector

Collect funding from trapped traders while riding the confirmed trend.

Why BARRACUDA Exists

Croc tried pure funding arbitrage and lost -42.7% on 535 trades. The thesis (collect extreme funding) was sound — the execution was broken. Croc entered funding trades without checking SM direction or trend structure. When funding flipped, Croc was counter-trend and lost on both price AND funding.

Barracuda fixes this with hard gates: extreme funding must be persistent (6+ hours), SM must align, and 4H trend must confirm. You only collect funding when the market agrees with your direction.

Six-Gate Entry Model

1. Extreme funding — annualized 30%+ (shorts paying longs, or vice versa)
2. Persistent — same direction for 6+ consecutive hours (not a spike)
3. SM aligned — Hyperfeed shows SM traders positioned in our direction
4. 4H trend confirms — SMA20 slope agrees with entry direction
5. RSI safe — not entering overbought longs or oversold shorts
6. Leverage >= 5x — need enough leverage for funding to be meaningful

The Double Edge

When all gates pass, you're collecting funding AND riding a trend:

• Funding income: at 30% annualized and 10x leverage, that's ~8.2% of margin per day
• Price appreciation: SM-confirmed trend provides directional alpha
• Trapped traders: the funding rate IS the signal — other side is paying to hold losing positions

DSL Configuration

Patient stops — funding positions need time to accumulate yield:

• Phase 2 trigger at 5% ROE (earlier than momentum skills)
• Stagnation TP at 8% ROE / 120 min (very patient — funding accumulates)
• Dead weight cut at 30 min (don't hold a position that never goes green)
• Standard 7/12/15/20% tier locks

Notification Policy (STRICT)

ONLY alert: Position OPENED (asset, direction, funding rate, daily yield, persistence hours), position CLOSED (DSL or thesis exit with reason), risk guardian triggered, critical error.

NEVER alert: Scanner found nothing, funding history updated, extreme funding detected but didn't qualify, scanner ran successfully, DSL routine check, any reasoning or analysis. If you didn't open or close a position, the user should not hear from you. Silence means working.

All crons MUST use NO_REPLY for idle cycles. Do not narrate scan results.

Expected Trade Frequency

Barracuda is a PATIENT strategy. Extreme funding that persists for 6+ hours with SM alignment and trend confirmation is rare. Expected:

• 0-2 trades per day in normal markets
• 0 trades for multiple days is normal during low-funding periods
• Max 3 entries per day hard cap
• If you're taking 5+ trades per day, something is wrong — the persistence gate should prevent this

Files

License

MIT — Built by Senpi (https://senpi.ai).