"Trading in perpetual contracts, counter-trend averaging down is an extremely risky operation"

Leverage amplifies losses, easily triggering liquidation: adding to a position is equivalent to increasing risk exposure in the wrong direction. Under high leverage, expanding the position causes losses to snowball, and the account survival rate decreases exponentially with each additional position, making it easy to hit the liquidation line and wipe out the principal.

Hidden costs exacerbate "chronic bleeding": averaging down enlarges the position size, causing implicit costs such as funding rates based on nominal value to increase sharply. In sideways or counter-trend markets, this ongoing "slow bleeding" quickly erodes margin, significantly increasing the risk of liquidation.

Induces psychological distortion and emotional traps: counter-trend averaging down often stems from "revenge trading mentality" and sunk cost fallacy. Traders tend to misjudge losses as "opportunities to pick up cheap assets," activating the brain's gambling reflex zone, falling into a self-destructive cycle of "losses—resentment—adding to positions—bigger losses."

Facing extreme mechanism risks and capital lock-up: during intense volatility, the exchange's automatic deleveraging (ADL) mechanism may forcibly close profitable positions, causing the hedging strategy to fail. Meanwhile, over-concentrating funds in a single direction not only creates immense psychological pressure but also causes missed opportunities elsewhere. $BTC ‌$ETH ‌