Part 9/15:
Using futures and leverage cautiously: He advocates for low-leverage trading, such as 0.8x or 1x, to mitigate black swan risks. Willie explains that futures contracts are instrumental for hedging and risk management, enabling traders to lock in prices temporarily and de-risk exposures during downturns.
Positioning around bottoms and tops: He mentions that during bull runs, significant gains—like 3x or more—occur over short periods. Therefore, proactive scaling out after confirming trend shifts allows traders to preserve profits and avoid execution risk on unpredictable tops.