These days, I've noticed the funding rates are starting to become extreme again, and a bunch of people in the group are shouting "counterparty positions, get ready." My usual habit is to first suppress my emotions: extreme rates = crowded, not an immediate reversal; taking the other side is actually a gamble on who will break first and get liquidated, it's not as simple as "picking up money." Especially now, everyone is complaining about validator income, MEV, and fairness in ordering. Honestly, you might think you're fighting retail traders, but in reality, you're probably competing with a bunch of faster bots trying to get out first.

Later, I realized that the most cost-effective choice is often to "hide": either reduce leverage and close positions, or simply avoid trading during those volatile periods, and wait until the rates return to normal before resuming regular trading. I don't avoid taking the other side entirely, but only if I can accept being liquidated a few times without losing my mind... Anyway, I’d rather miss out than become a liquidity sacrifice.