$BNB Why has the traditional 'high pull and sell' strategy become less appealing?

The traditional 'high pull - sharp drop' model has several fatal weaknesses:

1. High cost: It requires a significant amount of real money to be continuously invested to create a strong upward trend.

2. High uncertainty: During the high pull process, it may attract other savvy large funds to 'hitch a ride', becoming competitors for selling, and may even lead to a backlash.

3. Obvious targets: Severe price fluctuations easily attract regulatory attention and strong community backlash.

Why has 'grinding stop-loss' become a better strategy?

Today's traders are essentially engaged in a 'liquidity hunt'. Their target is not the entire capital of retail investors, but rather to precisely strike at the most vulnerable and predictable part of the market - the stop-loss orders of leveraged long positions and the liquidation lines of pledged loans.

The underlying market structure changes are:

· Widespread high leverage environment: Futures trading has become mainstream, with a large number of retail investors entering the market with 10x, 20x, or even higher leverage. Their stop-loss points are like bright lights in the dark, clearly marked on the order book.

· Prevalence of automated trading: Programmatic trading and stop-loss orders make market behavior predictable. Traders know that as long as the price touches a key point, a series of automatic sell orders will be triggered, creating a 'liquidity pit'.

The brilliance of the 'grinding stop-loss' strategy lies in:

1. Extremely low cost: There is no need to significantly raise prices; just a relatively small amount of funds can repeatedly cause minor fluctuations and false breaks below key resistance levels, continuously triggering high leverage long stop-losses.

2. Controllable risks: Prices fluctuate within a range, and the trader's own position risk is minimal, making it less likely to trigger systemic collapse or intense scrutiny.

3. Sustainable harvesting: As long as there are leveraged players in the market, this strategy can be executed periodically and repetitively, like collecting rent. Each small drop ('smashing a bearish candle') can capture a batch of concentrated stop-loss orders, making it highly efficient.