Exercise 11: Advanced Strategy Integration

⏰ Time Investment: 60-75 minutes 🎯 Goal: Design multi-protocol, multi-strategy trading systems

📚 Required Reading Integration 📖 Primary: Lesson 11: Advanced Topics and Emerging Trends 📖 Supporting: Lessons 5-8 (Protocol deep dives), Lesson 9 (Arbitrage)

🔍 Phase 1: Multi-Protocol Strategy Design (20 minutes)

Multi-Strategy Portfolio Template
Advanced Strategy Planning Template

Exercise 1: Protocol Portfolio Allocation

Your Capital: $_______

Allocate Across Protocols:

Protocol
Allocation
Percentage
Primary Use Case

Hyperliquid

$_______

_______%

_______

GMX V2

$_______

_______%

_______

Drift

$_______

_______%

_______

EdgeX

$_______

_______%

_______

Extended

$_______

_______%

_______

Total: $_______

Reasoning: _________________________________

Exercise 2: Strategy Diversification

Allocate Across Strategies:

Strategy
Capital
Percentage
Protocols Used

Directional Trading

$_______

_______%

_______

Funding Arbitrage

$_______

_______%

_______

LP Provision

$_______

_______%

_______

Cross-Margin Hedging

$_______

_______%

_______

Total: $_______

Question: How does this diversification reduce risk?

  • Your answer: _________________________________

💡 Phase 2: Advanced Feature Utilization (20 minutes)

Exercise 3: Yield-Bearing Collateral Strategy

Your Setup:

  • Available: $10,000 in stETH (earning 4% APR)

  • Want to: Open $10,000 Long ETH perp

Strategy Design:

  1. Deposit stETH as collateral: $_______

  2. Open Long ETH perp: $_______ (leverage: _______x)

  3. Net funding cost: _______% (funding - staking yield)

  4. Expected net cost: $_______ per month

Benefits:

  • Staking yield: _______% APR

  • Net funding cost: _______% APR

  • Total advantage: _______% APR

Question: Which protocols support this?

  • Your answer: _________________________________

Exercise 4: Cross-Margin Hedging Strategy

Design a Hedging Portfolio:

Setup:

  • Capital: $5,000

  • Long BTC-PERP: $10,000 (2x leverage)

  • Short ETH-PERP: $10,000 (2x leverage)

Cross-Margin Benefits:

  • If BTC +5%, ETH -3%: Net P&L = $_______

  • If BTC -5%, ETH +3%: Net P&L = $_______

  • Portfolio health: Improved / Worsened

Question: How does cross-margin help here?

  • Your answer: _________________________________

Protocols Supporting This: _______

🚀 Phase 3: Automation and Optimization (15 minutes)

Exercise 5: Bot Strategy Design

If You Were to Build a Bot:

Strategy: Funding rate arbitrage

Requirements:

Infrastructure Needs:

Expected Benefits:

  • 24/7 monitoring: _______

  • Faster execution: _______

  • No emotions: _______

Expected Costs:

  • Development: $_______

  • Maintenance: $_______/month

  • Gas: $_______/month

ROI Calculation: Worth it? Yes / No

Exercise 6: Vault Strategy Evaluation

Extended Vault Example:

  • Deposit: $10,000 USDC

  • Strategy: Automated market making

  • Historical APY: 25% (during volatility)

Your Analysis:

  • Expected APY: _______%

  • Risk level: Low / Moderate / High

  • Would you use? Yes / No

Reasoning: _________________________________

Alternative: Manual strategy

  • Your expected APY: _______%

  • Time required: _______ hours/week

  • Better option: Vault / Manual

📊 Phase 4: Emerging Trend Adoption (15 minutes)

Exercise 7: Mobile-First Strategy

Your Mobile Usage:

  • Trade on mobile: Yes / No

  • Percentage of trades: _______%

If Mobile-First:

  • Primary protocol: _______ (has native app)

  • Backup protocol: _______ (web-based)

  • Mobile advantages: _________________________________

If Desktop-First:

  • Protocols: _______

  • Why desktop: _________________________________

Exercise 8: Account Abstraction Benefits

Extended's Account Abstraction:

  • EVM wallet → Starknet trading

  • No explicit bridging

  • Gas paid in USDC

Your Use Case:

  • Have EVM wallet? Yes / No

  • Want Starknet access? Yes / No

  • Would use Extended? Yes / No

Benefits for You:

Exercise 9: Prediction Market Integration

Drift's B.E.T Platform:

  • Prediction markets + Perps

  • Unified margin

  • Cross-product hedging

Potential Strategy:

  • Event: US Election

  • Prediction: Long "Trump Wins"

  • Hedge: Short BTC-PERP

  • Reasoning: _________________________________

Would You Use? Yes / No

  • Why: _________________________________

🎯 Phase 5: Complete System Integration (15 minutes)

Exercise 10: Multi-Strategy Portfolio

Design Your Complete Portfolio:

Capital: $20,000

Allocation:

Strategy
Capital
Protocol(s)
Expected Return
Risk Level

Directional

$_______

_______

_______%

_______

Arbitrage

$_______

_______

_______%

_______

LP

$_______

_______

_______%

_______

Hedging

$_______

_______

_______%

_______

Total Risk: _______% of capital

Expected Portfolio Return: _______% annually

Question: How does this portfolio balance risk and return?

  • Your answer: _________________________________

Exercise 11: Optimization Opportunities

Identify Optimization Areas:

Current Setup: [Describe your current approach]

Optimization 1: _______

  • Benefit: _______

  • Implementation: _______

Optimization 2: _______

  • Benefit: _______

  • Implementation: _______

Optimization 3: _______

  • Benefit: _______

  • Implementation: _______

Priority Ranking: 1. _______, 2. _______, 3. _______

✅ Self-Assessment

Rate your advanced strategy integration (1 = Beginner, 5 = Expert):

Areas needing more exploration: _________________________________

🎯 Next Steps

If you scored < 4 on any topic:

  • Review Lesson 11 on that topic

  • Explore advanced features on protocols

  • Study automation examples

  • Research emerging trends

If all topics ≥ 4:

  • Proceed to Exercise 12 (Complete System Integration)

  • You're ready to build your professional system!

← Back to Summary | Next: Lesson 12 →

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