These past two days I’ve again seen the funding rate spike to ridiculous levels. My first reaction isn’t to rush in and play the hero… To put it bluntly, the more extreme the rate, the more it looks like a wave built out of emotion. Taking the other side of the trade is definitely tempting, but what I do more often is to dodge first: cut my position smaller, hang a very conservative price, and let it revert on its own. I’d rather earn less than get swept back and forth.

Especially now, with attention rotating fast, a meme or a celebrity name-drop pushing hot calls makes the funding rate even easier to distort. If you really want to take the other side, that’s fine—but don’t think you can gobble it all up in one go. Leave yourself some room; otherwise, when the last swing finally comes down and hits, your books will look pretty ugly. Anyway, I just slowly pick up the pieces and focus on staying alive.