Regular investment in short positions, as the name suggests, involves splitting the total amount you want to invest in short positions into 10 to 100 parts. Since you cannot precisely predict the price peak, you should only select small positions at minor price highs;

Don't say you have the ability to judge the peak, unless you claim to be better than Guilin in short-term trading～

Then comes the long process of regular investment until the position is fully opened. There is a requirement for this process: limit the frequency of opening positions. You cannot open a position just because you see a peak on the 1-minute chart, but rather at least at the 1-hour level or higher;

Why limit the period and frequency? Because the price might not peak in this range, and there could be another peak in the next and the one after that;

Thus, limiting the period and frequency can ensure that position growth is limited within a range. The benefit of limited position growth is that even if the price increases, there is still significant room to raise the average price;

Most of BTC's trend markets do not exceed 100 days, so as long as you grasp this periodic pattern and control the liquidation price of your position (which is controlled to 500,000 USD in Guilin), you can engage in market cycle arbitrage;

In simple terms, this strategy looks somewhat like a fixed amount of Martingale, but in fact, the risk is much smaller than Martingale, and the risk-reward ratio is larger, because it does not close the position at the first segment of price decline, allowing for long-term holding;

The downside is that the potential profit is relatively small, especially with small positions. If you have 100,000 USD to invest, the profit could indeed be considerable, especially with the yield from funding rates. However, if you have less than 10,000 USD, then you can only take it slow...

Finally, there is the potential risk. The risk here is not liquidation risk, but rather the loss of opportunity cost and time cost...

For example, during the last bull market, a trader I followed opened a super large short position using this method and rode the entire bull market...

Although he eventually broke even in the bear market and made a decent profit, the problem is, what if this capital had been used to go long? Or to participate in DeFi, the potential returns could have been at least 100 times different... Of course, the risks would also be much higher;

So essentially, the logic of regular investment in short positions is to significantly reduce loss risk by lowering expected returns, suitable for large funds, but not very friendly to small funds;