While I’m sitting here relaxing a bit, there’s one thing that’s worth mentioning.
If this correction is indeed approaching its final phase and ultimately marks the cycle low, then it’s important not to mess up the opportunity when it arrives.
I know a lot of people feel the urge to go all-in with high leverage at major bottoms to squeeze every last bit of return out of the move. The problem is that cycle lows are rarely clean. More often than not, you get plenty of volatility, stop hunts, liquidity grabs, and general market nonsense before the real trend reversal is obvious.
That’s why I personally wouldn’t be aggressive with leverage at these levels.
For people who tend to be emotional traders, I’d honestly suggest making these purchases through spot positions only. I know from experience that I’m far more willing to hold a spot position through volatility than a futures position.
For those who absolutely feel the need to use leverage, the approach I’ve used in the past is different. Instead of opening a highly leveraged position immediately, I would enter the bottoming process with a 1x futures position. In practice, that behaves very similarly to spot exposure but without introducing liquidation risk.
Then, once the bottom becomes clearer and the first bullish impulses start to appear, you can increase leverage later. For example, moving from 1x to 2x allows you to free up part of your capital while keeping the position open. That released capital can then be used to buy later pullbacks after the trend reversal has already started to confirm itself.
The key idea is simple: use leverage after the market starts proving you right, not before.
That way you scale exposure with increasing confirmation rather than maximum uncertainty. You stay involved, reduce liquidation risk, and still keep dry powder available for future opportunities.
I know I explained this concept before and I’m not sure if I can still find the original post. If there’s enough interest, I can make a more detailed breakdown after I get back from Thailand. But as a general framework, if you feel like you have to use leverage, I’d much rather see people increase leverage after confirmation than try to catch the exact bottom with maximum size.