These days, I've noticed that the funding rates are starting to go off the charts again. My first reaction isn't "front-run the other side to make a quick profit," but rather to reduce my position first... Frankly, when the rates are extreme, market sentiment is already quite skewed. Doing the other side doesn't necessarily mean you're catching the top or bottom; it might just be a tug-of-war with a bunch of liquidation bots. Especially now, with discussions about rate cut expectations, the US dollar index, and risk assets all acting erratically, the volatility can easily break the logic.

My usual approach is: if I really want to take the other side, I can, but only with a small position and set a stop-loss. The rest of the funds are better off moving on-chain, swapping bridges for cheaper routes, at least I can control the fees and slippage. Anyway, I don't really believe that "high rates = guaranteed profit"; more often, it's "high rates = everyone is crowding to one side." We'll talk more about this next time.