Someone asked me whether I should take the other side of the trade when the funding rate is extremely high or low. Honestly, I usually hide first, really, don’t think of yourself as a savior… When the rate hits an extreme, the group chat starts arguing whether it’s about to reverse or just continue to inflate the bubble, but many people on-chain are often shouting while increasing leverage, their words are tough but their hands are even tougher.

My approach is: first reduce my position to a level where even if I get swept out, it won’t hurt, then see if there are any obvious “hard to hold” orders starting to loosen. Before it loosens, holding against the market sentiment is like wrestling a train. If I really want to take the other side, I can, but I only dare to do it in batches, slowly, rather miss out than become fuel. Anyway, I just love watching reflections, I don’t like being the fish in the reflection.