fee drag reality checker

The problem

High-frequency or leveraged strategies often look profitable on paper but fail in production due to hidden overhead. Developers and traders frequently underestimate how turnover, funding rates, and slippage compound to erase their edge.

What it does

• Quantifies every cost component including commissions, bid-ask spreads, and exchange fees.
• Calculates time-based costs like perpetual funding rates and margin borrow interest.
• Computes annualized fee drag and determines the break-even alpha required for viability.
• Stress-tests strategies against worst-case liquidity and high-cost execution scenarios.

Why this beats prompting it yourself

Generic LLM prompts often miss specialized costs like funding periods for perpetuals or the linear growth of turnover drag. This skill uses a structured mathematical framework to ensure no cost component is overlooked, providing a standardized reality check that separates viable alpha from fee-burning noise.

Use cases

• Audit a crypto perpetual strategy to see if funding rates kill the long-term yield.
• Compare different broker fee schedules for a high-turnover equity scalping bot.
• Calculate the impact of slippage on large order sizes relative to thin order books.
• Determine if a short-selling strategy is viable after factoring in hard-to-borrow fees.