<![CDATA[Liquidity Letters]]>https://www.liquiditygoblin.comhttps://substackcdn.com/image/fetch/$s_!k1ZQ!,w_256,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd8093f3e-c6da-42b1-b121-9c1960e71cae_630x630.pngLiquidity Lettershttps://www.liquiditygoblin.comSubstackThu, 14 May 2026 11:09:44 GMT<![CDATA[Let's pretend we have an edge.]]>https://www.liquiditygoblin.com/p/lets-pretend-we-have-an-edgehttps://www.liquiditygoblin.com/p/lets-pretend-we-have-an-edgeWed, 03 Sep 2025 06:35:49 GMTBear with me on this one, I’m going to need you to use your imagination. But let’s pretend we have an edge.

I’m trying to put these out more consistently, so if you want to read more of these consider subscribing.

Firstly, we should cover what we mean when we say edge. Edge, alpha, advantage all mean the same thing in trading, we have an information asymm…

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]]><![CDATA[The 80/20 rule]]>https://www.liquiditygoblin.com/p/the-8020-rulehttps://www.liquiditygoblin.com/p/the-8020-ruleWed, 27 Aug 2025 10:50:58 GMT

Once upon a time, I stepped onto a trading floor for the first time, as an eager trading intern, I had no idea what I’d got myself into.

I’m trying to put these out more consistently, so if you want to read more of these consider subscribing


I had next-to-0 knowledge about trading, but somehow I found myself in the middle of an index options market makin…

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]]><![CDATA[Understanding the $1.7B Bybit Exploit: Multisigs under Attack]]>https://www.liquiditygoblin.com/p/understanding-the-17b-bybit-exploithttps://www.liquiditygoblin.com/p/understanding-the-17b-bybit-exploitSat, 22 Feb 2025 01:05:05 GMTThis morning, Bybit lost $1.7 billion through their Safe{Wallet} implementation, and whilst the investigation is ongoing, we've seen enough similar attacks recently to piece together a reasonable hypothesis of what's occurred.

If you haven’t yet, consider subscribing

Initial Reports

Bybit has confirmed that attackers managed to exploit a gap in their cold …

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]]><![CDATA[Eyeballing A Spread]]>https://www.liquiditygoblin.com/p/eyeballing-a-spreadhttps://www.liquiditygoblin.com/p/eyeballing-a-spreadTue, 28 Nov 2023 05:23:46 GMTWhat is pairs trading?

Fundamentally pairs trading is going long one asset and short the other in the expectation that they converge. They’re nice since they’re not exposed to the market (market neutral) but trading the Relative Value of one asset to the other. The tricky part is finding pairs that mean revert, sometimes you can find this via data mining…

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]]><![CDATA[Crypto Beta]]>https://www.liquiditygoblin.com/p/crypto-betahttps://www.liquiditygoblin.com/p/crypto-betaThu, 29 Jun 2023 14:17:01 GMTBeta is such a simple concept but it’s often misunderstood by beginner traders, here-in I’ll attempt to illustrate what it is, how it manifests and how to use it. We will follow on with a practical way to calculate it with a provided jupyter notebook.


What is Beta?

Beta is a concept that has been around forever and is extensively used in tradfi, it define…

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]]><![CDATA[DeFi Carry Trades]]>https://www.liquiditygoblin.com/p/defi-carry-tradeshttps://www.liquiditygoblin.com/p/defi-carry-tradesSat, 24 Jun 2023 05:18:02 GMTEarlier in the week on twitter, I shared a trade idea using a long perp position to collect funding, and hedging using on chain borrow. Here we will dive deeper into this trade, look at the risks, sizing, execution and how to think about automating.

  1. The Trade

  2. Risk Premia

    1. What is Risk Premia?

    2. Types of Risks

    3. Why there’s a Premium

  3. Understanding Perps

    1. The contract spec

    2. Who’s trading them?

    3. The Dynamics

    4. Risks

  4. On-chain borrow

    1. A look at protocols

    2. The Mechanics

    3. Risks

  5. Putting it together

    1. Plotting

    2. Analyzing costs

    3. Why and When to hedge

    4. Collateral Management

  6. Automation

The Trade

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]]><![CDATA[Crypto Options Q&A]]>https://www.liquiditygoblin.com/p/crypto-options-q-and-ahttps://www.liquiditygoblin.com/p/crypto-options-q-and-aSat, 10 Jun 2023 04:13:01 GMTWelcome to my substack! I’ll be posting weekly, for paid subscribers and occasionally for free subscribers. I will be posting market insights and actionable alpha for systematic trading. Combined with educational articles on how to quant trade, I’ll share practical trade ideas and introduce you to more advanced quantitative trading concepts. If you subs…

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]]><![CDATA[Coming soon]]>https://www.liquiditygoblin.com/p/coming-soonhttps://www.liquiditygoblin.com/p/coming-soonMon, 15 May 2023 14:19:28 GMTThis is Liquidity Letters.

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