A low-leverage strategy contract's core is to actively learn and apply Mao Zedong Thought: when the enemy is strong and I am weak, retreat when the enemy advances, conserve strength and wait for an opportunity to counterattack; when I am strong and the enemy is weak, attack when the enemy retreats, concentrate superior forces to eliminate the enemy one by one. What does this mean? It’s that when the bears are relatively stronger, the pullback is larger than the rebound, so the bulls retreat to defend, focus on defense, and attack with small forces; when the bearish momentum weakens, then go long and counterattack. For example, last week, bears pushed down to 74,888, and the next day broke through 76,600. I immediately said that the short-term trend turned bullish, which is a counterattack. When the bulls are strong, the main approach is to attack, meaning attack is the best defense, continuously pushing the bears back upward. The bulls can keep advancing to gain more space, and at this point, the main camp of the bulls can directly move up to the boundary of the bears’ defense, until the boundary is breached by the bears and they retreat to the next line of defense.

Short- and medium-term contracts are about extracting small directions within the larger trend. The "big trend" is definitely based on monthly units, then summarized weekly, and broken down into daily small directions. If the daily upward structure remains solid and the weekly chart is still in an oversold rebound cycle, then the medium-term trend is dominated by bulls, and the strategy is undoubtedly to buy on dips. At this time, pullbacks are minor adjustments, not true declines; these dips are normal fluctuations after digesting the day's gains. Since April 6, the daily chart has been consistently strong for five weeks, establishing the recent dominance of the bulls. Because the pullback is small, high-level shorts hardly make any profit, so retracements to buy are the best with the highest risk-reward ratio.

In fact, as long as the daily and higher-level indicators show no signs of a bearish trend, the entire market in the short term does not have systemic risk, because major declines are brewed by multiple small drops rather than a sudden huge crash, which is impossible. Without accumulating small streams, there is no great river. So, at this stage, buying on dips compared to March has significantly reduced risks, whether in the weekly medium-term trend or daily short-term fluctuations, and the profit and loss ratio of buying on dips has increased considerably. This directly proves that after February 28, the market has shown a clear rebound. During the five consecutive weekly declines on the monthly chart, many traders exited, but recently they have been gradually returning.

On April 7, I said that the shorting key could basically be removed. Short-term rises and falls are normal, but when the trend turns upward, the focus should be on weakening short positions. If you get used to shorting, once you get caught at the bottom due to short-term dips, the trend reversal can happen very quickly, making it hard for bottom-positioned shorts to survive. Either you set stop-losses every time you short, or you avoid shorting altogether. For small-scale pullbacks, try not to short if possible.

Once I establish a strategic direction of buying on dips, I will not change it easily unless there are clear, significant negative macro news, such as Japan raising interest rates. Then, in the short and medium term, it’s necessary to avoid large retracement risks.

Whether it’s the previous four-year bull-bear cycle or the current and future super cycles, the alternating periods of bull and bear markets and the bull markets themselves occupy about three-quarters of the time, while single-sided declines usually last less than six months. From a long-term perspective, the low-leverage buy strategy remains core, as it determines profit potential in both spot and futures markets. If you use a bearish mindset to guide spot trading, you won’t be able to bottom-fish or use time to exchange for space to maximize profits. If you’re dreaming of prices dropping to zero, how can you possibly buy the bottom? The mindset of directional trading itself is often inconsistent with most market conditions.