You say that when the funding rate skyrockets, it’s like really wanting to jump in and be the “smart money” counterparty? I used to get itchy too, but now I’m more conservative: extreme funding rates are basically emotions written on the face. If I really want to take the other side, I’d wait until macro conditions give some room (like more liquidity or risk appetite warming up), otherwise fighting against the wind head-on, even if you win, you won’t sleep well.

Anyway, my own approach is pretty simple: when the funding rate is extreme but the market has no direction, I do less or reduce my position, prefer to avoid volatility; if I do participate, I go small and hang in slowly, don’t go all-in to prove myself. Those on-chain tagging tools haven’t been criticized recently for being “lagging/misleading” either… I just treat them as a thermometer, not a steering wheel. When it gets hot, I slow down, that’s it for now.