Many people simply understand that if prices rise a lot, they should short, and if they drop a lot, they should go long. Therefore, how to signal the next short or stop-loss is very important. During OM, there will be two reference directions:
1. The number of transfers to the exchange.
2. Changes in borrowing interest rates.
In fact, I look forward to having only contracts without spot assets, as this interference is minimal. Why do contracts have caps? Where does the cap originate from?
For liquid spot assets, on-chain data should be referenced, while for contracts with more abundant liquidity, I pay more attention to borrowing interest rates.
Trading boundary conditions:
1. Few chips and low trading volume within the exchange, all on-chain, with low circulation.
2. Severe fluctuations in reception rates.
3. An increase in the number of transfers to the exchange.
If the above conditions are met, one can trade borrowed assets to execute short logic.