BTC premium-index fade looks good until you shuffle it

Serg
Serg
Published August 27, 2026
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BTC premium-index fade looks good until you shuffle it

Verdict: OVERFIT · Asset: BTCUSDT premium index vs spot 1h · Sample: chronological 60/20/20 (57 400 hourly events)

Hypothesis: extreme perpetual–spot basis (rich → underperform; cheap → outperform) predicts the next 8h return. Distinct from the funding-transfer study.

What happened

Primary feature: Binance premium-index close (raw fraction ~1e−4, not annualized) from data.binance.vision. Alt mark/spot−1 was sensitivity only.

Check Result
Discovery Strong fade (t ≈ −3.2 / +4.2)
Val gate Clears only cheap ΔP≥0.03; rich means are anti-fade; |t|≪2
Neg. control Shuffle gate hit rate 0.43 (ΔP OR-gate is a high false-positive trap with overlapping 8h windows)
Q2 Not collinear with funding at 0.8, but val OLS β_basis > 0 (anti-fade); funding takes the fade sign
OOS Fail (n_rich=0 under freeze; cheap ΔP wrong-signed)
Q3 Mean net <0 at 5–10 bps on val and OOS

Trading

No edge to ship. Discovery strength without a clean validation + high shuffle FPR is the definition of a research trap.

Final Verdict

OVERFIT

Do not build “fade rich basis” bots from premium-index extremes on this alignment. Funding already failed cleanly; basis fails messier — which is worse.

Reproducible research result

Backtest evidence

BTCUSDT1h57,400 bars
Research verdict
needs more data
0
Trades

Robustness

Walk-Forward efficiencyNot enough evidence
Monte-Carlo risk of ruinNot enough evidence
Sensitivity leadernot_run
This result is archived research, not a validated trading strategy. More independent evidence is required.
MCP trail: load_dataset

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