Retail Sentiment Fallacy?

Hi,
I am also trying to understand the Retail sentiment, and what it actually shows. As already stated, retailer loose money on average. And there is a very good inverse correlation between retail sentiment and the price, as shown in the picture in the first post in this thread.

When the price is at a bottom, a record percentage of retail traders are long.
When the price is at a top, a record percentage of retail traders are short.

It seems like doing exactly what the retailer does is the best strategy. You clearly want to go long at the bottom, and sell at the top. I really cannot understand this. Even when you see videos about how to use the retail sentiment, or read about it, it says that you should do the opposite to what the retail crowd does. But that is actually the worst strategy you could have. What am I missing?

I think trade contrarian, trade against the crowd does not recomment you to trade against the majority of retailers, eg. when price hit the bottom, or makes a new ATL, clearly the majority of retails will go long, they learn, they know, and the market maker too. They, the later one, also have their buy orders at that low price level, before price even gets there. So the crowd want to go long at the ATL/bottom, is not leading, but a lagging action, and market maker waiting already, they dont want to pay out to that majority cowd, when they let price rising.
They want to buy at low price and sell at high price, Retailer too, but MM is one step ahead. So the advise not to trade with the crowd could be, when the crowd all jump in long, beware there is a DB as they saying, and the MM is a step before you. So before the crowd wanted to buy, you should have bought already, now they all want to long, you should go short, because that what MM will do, they wont allow the crowd to be in profit, and want to use thoese long as their fuel to push price higher so at some nice level they will sell. So the crowd mind is LONG, but you have to think SHORT, in phase with the market maker then when the crowd are shy from BUYING then you trade contrarian, you go in LONG, opposit the crowd , the majority's thinking.
Like USDCHF today 30 Aug, after making AT, today it rised quite nicely, market is strong, every one feel safe to goin long, the market sentiment has shifted to buy 57% on long and 43% on short, this market sentiment shift change is the problem, the clear trend up is the problem, the first week of Sep there will be hard slap on the face ... Then once the majority hesitates, not sure they should join the LONG side, then you go long.

an other example is EURUSD, sentiment shifted 40% LONG/60% short, are you with the crowd or against the crowd in the 1 rst week of Sept?

the only useful thing about retail is where they have clusters of stop losses. Other that its all useless.

I m afraid of us election