Just got a bunch of red dot pop-up windows on my phone, all reminding me "Funding rates are extreme again"… It made my hand a little itchy to click, but honestly, the biggest fear at times like this is mistaking yourself for the "chosen one for a reversal."

I usually ask myself first: Am I trading the price, or am I trading everyone’s emotions? Extreme rates = crowded trades, theoretically it’s more "cost-effective" to take the other side, but only if you can handle the pain of continuing to squeeze the bubble. The community is now arguing whether to expect a reversal or keep squeezing; my approach is pretty timid: without clear structural signals (like obvious imbalance being corrected, volatility starting to converge), I reduce leverage or even hide for a while, waiting for the rates to go from "ridiculous" back to "acceptable."

If I really want to take the other side, that’s fine too, but treat it like an engineering problem: small position size, strict stop-loss, don’t add to the position out of frustration. Anyway, I’d rather miss out than get educated by a loss.