Yesterday I saw an interesting case — a whale opened a 40x short on BTC and closed the position with a profit the very same day, even though market makers were actively trying to liquidate him. Do you know what helped? Most likely, the classic TWAP strategy.

I'm sharing what this actually is because many don’t understand why whales often exit positions without losses, even when the market moves against them.

TWAP stands for Time-Weighted Average Price — it’s an algorithmic trading approach where instead of placing one huge order, you break it into many small ones. The main idea: execute these parts evenly over time to avoid causing a sharp price jump.

How does this work in practice? Your large order is divided into small pieces, each placed at equal intervals. The result is an average execution price that’s much better than trying to exit all at once.

When is TWAP especially useful? When you’re trading large volumes and want to avoid slippage. In markets with low liquidity, where one big order can move the price. And for long-term strategies, where the average price matters more than execution speed.

That’s why that whale was able to exit his position calmly. Instead of dumping the entire volume at once and triggering liquidation, he used TWAP — small parts, timing, and the result — a profit on the account. Market makers didn’t even really notice what happened.