Trading Fees Ate 24% of This Strategy's Profits
Everyone talks about win rate and profit factor. Nobody talks about how much you’re paying to trade. We measured it.
Two Strategies, Real Numbers
We ran BB Squeeze SHORT and MACD Cross SHORT 4H on 50 coins over ~2.3 years (Nov 2023 - Apr 2026). Same market, same cost model: 0.04% maker / 0.06% taker per side, plus actual funding rates.
| Metric | BB Squeeze SHORT | MACD Cross SHORT 4H |
|---|---|---|
| Total Trades | 2,183 | 2,945 |
| Gross Return | ~29.31% | ~72.65% |
| Fees Paid | -6.99% | -9.42% |
| Funding Costs | -1.64% | -7.76% |
| Net Return | +20.68% | +55.47% |
| Fees as % of Gross | 23.8% | 13.0% |
| Total Cost Drag | 8.63% | 17.18% |
BB Squeeze made ~29% gross but only kept ~21% after costs. Fees alone took 7 percentage points. That’s nearly a quarter of the gross profit gone to the exchange.
MACD Cross 4H traded more (2,945 vs 2,183) and held positions longer (4H timeframe = more funding). The funding cost alone was -7.76% — more than BB Squeeze’s total fee bill.
The Funding Rate Trap
Fees are predictable. Funding rates are not.
| Cost Type | BB Squeeze 1H | MACD Cross 4H |
|---|---|---|
| Trading Fees | -6.99% | -9.42% |
| Funding Rates | -1.64% | -7.76% |
| Total | -8.63% | -17.18% |
MACD Cross holds positions for hours on a 4H timeframe. Every 8 hours, funding rates apply. In a bullish market, short positions pay funding to longs. Over 2,945 trades across 2+ years, that added up to -7.76%.
BB Squeeze on 1H enters and exits faster. Less exposure to funding. The funding cost was only -1.64%.
What This Means for Your Strategy
A strategy with PF 1.20 and 2,000+ trades sounds profitable. But after costs:
- Gross PF 1.20 at these fee levels becomes a much thinner edge
- Higher frequency = more fees — 2,183 trades x 2 sides x 0.05% avg = ~2.18% in round-trip costs alone, multiplied across positions
- Longer holds = more funding — 4H strategies pay 3x more funding than 1H
The break-even point shifts. A strategy that shows +5% gross return might be negative after costs.
How to Reduce the Damage
- Trade less frequently — Fewer trades = fewer fee events. But too few trades means low statistical significance.
- Use limit orders — 0.04% maker vs 0.06% taker. On 2,000 trades, that’s a meaningful difference.
- Watch funding rates — Short in a bull market or long in a bear market = paying funding. Factor this in before you pick a direction.
- Get fee discounts — Exchange referral programs cut fees 10-20%. On 2,000+ trades, that compounds.
The Number to Remember
For high-frequency strategies on crypto futures: expect 5-10% of your capital to go to fees over a 2-year period. If your strategy doesn’t gross more than that, you’re trading for the exchange, not for yourself.
Run your own cost analysis on the PRUVIQ Simulator — every result includes fees and funding breakdowns.
Build Your Own Strategy
Combine indicators, set conditions, and backtest on 570+ coins with 2+ years of data. No code required.