AguilaTrades Loses $32.7 Million on Bitcoin Longs Shifts to Shorts

AguilaTrades, a trading account known for its aggressive leverage and large trade volumes, has recently closed three consecutive long positions in Bitcoin, resulting in a combined loss of $32.7 million. The most recent long trade involved 3,854 BTC and ended in a $17 million loss, despite earlier unrealized gains of $3.2 million. This marks a significant reversal in strategy for AguilaTrades, which has now pivoted to a short position on Bitcoin.

The shift to a short position has yielded immediate gains, with the trader closing a recent short position for a profit of over $55,000. This marks a rare win after weeks of substantial drawdowns. The short position was executed with zero funds in long positions, and funding rates showed a slight negative charge of $112.10, while margin usage remained moderate. However, the amount gained did not recover prior losses, and the realized gain was a small fraction of the overall drawdown.

The trading behavior of AguilaTrades reflects a rapid reversal in positioning from long to short within days. Trade execution patterns indicate high volatility in decision-making, especially under leveraged conditions. All reported trades were executed on perpetual contracts, with short-term changes in bias based on price action. The short-term gain after consecutive losses suggests a recalibration in approach, though the net performance remains negative over the two-week span.

The most recent long trade involved a margin usage of 21.13% and a leveraged position valued at $27.3 million. At peak exposure, the position size reached approximately 275 BTC. The entry price was $99,604.70, while the exit happened near $99,388.00. Despite using 4.23x leverage, the trade closed with an unrealized profit of $55,239.26, or 4.04% return on equity. However, the broader picture reflects severe cumulative losses, with the combined PnL over time chart revealing a steep decline, dipping as low as minus $32.7 million.

Prior to the third loss, AguilaTrades held a long position valued at $408 million with 3,854 BTC. At the time, the unrealized gain stood at $3.2 million. The trader eventually exited that position with a $17 million loss. This trading behavior reflects a rapid reversal in positioning from long to short within days, indicating high volatility in decision-making, especially under leveraged conditions.

The shift to a short position on Bitcoin marks a significant change in strategy for AguilaTrades, which has historically favored long positions with aggressive leverage. The recent losses highlight the risks associated with high-leverage trading and the importance of recalibrating strategies in response to market conditions. While the short position yielded immediate gains, the overall performance remains negative, underscoring the challenges faced by traders in volatile markets.