Does Reducing Leverage Always Lower a Trader’s ADL Ranking?

Yes, reducing leverage almost always lowers a trader's ADL ranking. Reducing leverage means the trader is increasing their margin buffer, which directly lowers their effective leverage.

Since effective leverage is a primary factor in the ADL ranking algorithm, lowering it makes the position less risky to the exchange and pushes the trader further back in the ADL queue, away from the immediate threat of being deleveraged.