Perps Domain (Hyperliquid)

The Perps domain trades perpetual futures on Hyperliquid using technical analysis and leverage.

Overview

Platform: Hyperliquid Chain: Hyperliquid L1 (Arbitrum-based) Strategy: Technical analysis with momentum and mean reversion

Perpetual futures allow leveraged exposure to crypto assets without expiration dates, using funding rates to keep prices aligned with spot.

Strategies

RSI Mean Reversion

Trade reversals at extreme RSI levels.

Oversold (RSI < 30): Look for long entries
Overbought (RSI > 70): Look for short entries

Entry: Wait for RSI to cross back (e.g., RSI crosses above 30)
Exit: Target 2-3% move or RSI reaches opposite extreme

Funding Rate Arbitrage

Exploit extreme funding rates.

High positive funding (>0.05%): Market is too bullish, consider shorts
High negative funding (<-0.05%): Market is too bearish, consider longs

Collect funding while betting on mean reversion

Momentum + Trend

Follow strong trends with technical confluence.

Trend: Price above/below key moving averages
Momentum: RSI showing strength in trend direction
Volume: Confirmation of interest

Enter in trend direction on pullbacks

Available Tools

fetch_markets

Get perpetual markets with prices and indicators.

{
  name: 'fetch_markets',
  args: {
    symbols: ['BTC', 'ETH', 'SOL'],  // Optional filter
    include_indicators: true
  }
}

Returns:

• Symbol
• Mark price
• Index price
• Funding rate (current and predicted)
• Open interest
• 24h volume
• RSI (14)
• Price change %

get_positions

View open perpetual positions.

{
  name: 'get_positions',
  args: {}
}

Returns:

• Symbol
• Side (long/short)
• Size (USD)
• Entry price
• Mark price
• Unrealized P&L
• Liquidation price
• Leverage

get_balance

Check margin balance.

{
  name: 'get_balance',
  args: {}
}

Returns:

• Available balance
• Used margin
• Total equity
• Margin ratio

submit_decision

Record a trading decision.

{
  name: 'submit_decision',
  args: {
    action: 'open_long',
    target: 'ETH',
    amount_usd: 300,
    leverage: 5,
    stop_loss: 1850,
    take_profit: 2100,
    confidence: 0.72,
    reasoning: 'RSI oversold at 28, funding negative, support holding...'
  }
}

Actions

Action	Description
open_long	Open long position
open_short	Open short position
close_position	Close entire position
partial_close	Close portion of position
add_to_position	Increase position size
hold	No action

Risk Rules

Leverage Limits

Maximum leverage: 10x (hard limit)
Recommended: 3-5x for most trades
High conviction only: 5-10x

Position Sizing

Max position: 20% of domain balance
Typical: 10-15% for normal confidence
Small: 5-10% for lower confidence

Stop Loss Requirements

All positions should have defined exits:

{
  stop_loss: entryPrice * (side === 'long' ? 0.95 : 1.05), // 5% stop
  take_profit: entryPrice * (side === 'long' ? 1.10 : 0.90) // 10% target
}

Example Decision Flow

1. Claude calls fetch_markets(include_indicators: true)
   -> Returns BTC, ETH, SOL with RSI, funding, etc.

2. Claude identifies ETH:
   - RSI: 28 (oversold)
   - Funding: -0.03% (negative)
   - Price: Near $1900 support

3. Claude checks get_positions()
   -> 1 open BTC long, room for more

4. Claude analyzes:
   - Active skills: pattern-perps-rsi-oversold (success rate: 67%)
   - Domain balance: $2,100
   - Position budget: $300 (14%)

5. Claude calls submit_decision:
   action: open_long
   target: ETH
   amount_usd: 300
   leverage: 5
   stop_loss: 1850
   take_profit: 2050
   confidence: 0.72

Metrics Tracked

Metric	Description
Win rate	% of profitable trades
Average P&L	Mean return per trade
Sharpe ratio	Risk-adjusted returns
Max drawdown	Largest peak-to-trough
Funding collected	Net funding payments

Common Warning Skills

# Warning: High Leverage in Volatile Markets

Avoid >5x leverage when:
- BTC 24h range > 8%
- Major news pending
- Weekend liquidity (lower)

# Warning: Fighting the Trend

RSI can stay oversold/overbought in strong trends.
Wait for price confirmation before counter-trend trades.

Liquidation Monitoring

The position monitor service tracks liquidation risk:

// Automatic alerts at these levels
const LIQUIDATION_THRESHOLDS = {
  warning: 0.70,  // 70% to liquidation price
  danger: 0.85,   // 85% to liquidation price
  critical: 0.95  // 95% to liquidation price
};

Related Documentation

• Hyperliquid Client - API details
• Risk Management - Risk controls
• Paper Trading - Testing positions