Copy Trading Master’s Winning Strategies Review — Episode 107

Easy Copy, Smart Trade! Discover the winning strategies of our popular traders.

1.Copy Trading Master’s Introduction

User Nickname: LBA6G87744

Trader’s Profile: https://www.lbank.com/copy-trading/lead-trader/LBA6G87744

Trading Style: medium- to short-term trading

2.Trade Operation Recap

50x leverage long on $XRP, entry price 2.85 USDT, closing price 3.0317 USDT, single-trade ROI +318.78%. As shown in the chart:

3.Trade Review

3.1 Market Background

1) Ahead of the Jackson Hole Symposium, traders continued to ramp up bets on a 50-basis-point Fed rate cut in September. Despite July’s PPI posting the largest quarterly increase in three years, option contracts wagering on a 50-bp cut have reached 325,000, which could yield more than $100 million in profits if realized.

U.S. Treasury yields ended their losing streak on Tuesday, with markets pricing in roughly an 80% chance of a 25-bp cut. BMO Capital Markets warned that if Powell’s speech is less dovish than expected, front-end yields may face upside risk.

A JPMorgan survey showed investors’ short positions have fallen to the lowest level of the month, shifting sentiment toward neutral. CFTC data indicated asset managers added long positions in long-dated Treasuries, while hedge funds maintained net shorts in 10-year notes. In the options market, a divergence emerged with front-end bullish positioning versus long-end bearish positioning.

2) At the Jackson Hole Symposium, Fed Chair Jerome Powell hinted that shifts in the balance of risks may require policy adjustments, with rising downside risks in employment. The market interpreted this as a dovish signal.

Following his remarks, traders increased bets on a September rate cut, U.S. Treasury yields and the dollar index plunged, with the 10-year yield dropping below 4.26% and the 2-year falling more than 10 basis points; the dollar fell 1% against the yen. U.S. equities rallied sharply: the S&P 500 rose 1.5%, the Dow gained over 1.5%, and the Nasdaq at one point surged 2%, with broad gains in tech stocks — Tesla jumped more than 5%.

Gold reversed losses and broke above $3,360/oz, while silver futures climbed more than 2%. Bitcoin spiked by as much as $3,000, and Ether soared more than 10% intraday.

3.2 Trade Analysis

Between August 14 and 21, the crypto market as a whole entered a pullback phase, mainly because the market had already priced in a possible Fed rate cut in September and, at the same time, hedged against the risk of Powell delivering a hawkish signal at the Jackson Hole Symposium.

As of August 20, Bitcoin and major altcoins had retreated to key support levels and showed signs of stabilization. Based on historical patterns, when markets have already undergone a significant decline ahead of major events, the room for further sharp downside — even if the outcome disappoints — is usually limited. However, traders should still remain alert to short-term “long-wick” risks. Overall, the current range offers a relatively favorable risk-reward setup for long positions.

Taking XRP as an example, the latest pullback can be viewed as a healthy correction within the uptrend that began on August 3. As long as prices do not break below the August 3 low, that level remains a reasonable zone for long entries.

Trading background as shown in the chart:

Out of caution regarding potential “long-wick” risk, the stop-loss was set near the structural low of August 3, while the take-profit target was temporarily referenced to the structural high above. Subsequently, Powell delivered a dovish signal, prompting a rapid market rally. However, this upward move lasted only a single day before losing momentum, with some altcoins beginning to show notable pullbacks. After XRP displayed signs of a minor false breakout, the position was closed in a timely manner to lock in realized gains and avoid the risk of a subsequent retracement.

3.3 Winning Strategies Summary

How to Identify Key Support and Resistance Levels: Anchor Points in Trading

In financial markets, price movements are not entirely random. They often pause, reverse, or accelerate around certain key areas. These areas are what we commonly call support and resistance levels.

Support and resistance act as anchors in trading, helping traders determine entry points, stop-losses, and take-profit levels. Mastering how to identify them is a critical step in building a trading system.

I. Basic Concepts of Support and Resistance

• Support level: An area where buying pressure strengthens during a downtrend, causing the decline to slow or reverse.
• Resistance level: An area where selling pressure increases during an uptrend, causing the rise to stall or pull back.

At their core, support and resistance reflect a shift in market forces: support signals stronger demand, while resistance signals stronger supply.

II. Main Methods of Identifying Support and Resistance

1. Historical Highs and Lows

• Method: Review past price action and mark levels where prices have repeatedly reversed.
• Logic: These points concentrated significant buying and selling power; when retested, markets often react similarly.

2.High-Volume Areas (Volume Profile)

• Method: Use a volume profile to find price ranges with heavy trading activity.
• Logic: Such zones suggest large amounts of capital changed hands, creating balanced forces where prices tend to stall.

3.Moving Averages (MA)

• Method: Common MAs such as 20, 50, or 200 days often act as dynamic support/resistance.
• Logic: MAs reflect the average cost basis of market participants. Price movements around them can trigger trend-following or reversals.

4.Trendlines and Channels

• Method: Connect two or more highs or lows to draw trendlines or channels.
• Logic: Trendlines visualize market sentiment. A breakout often signals trend acceleration or reversal.

5.Technical Indicator Confirmation

• Method: Combine levels with RSI, MACD, or Bollinger Bands.
• Logic: When a key price level coincides with overbought/oversold signals, the level has stronger validity.

III. The Conversion Rule of Support and Resistance

A golden principle:

“When a support level breaks, it often becomes new resistance; when resistance is broken, it often turns into new support.”

This reflects market psychology: trapped longs sell to break even, turning old support into resistance, and vice versa.

IV. Practical Application: Trading with Support and Resistance

1. Buying at Support

• Build positions gradually near strong support.
• Place stop-loss just below confirmed breakdown.

2.Selling at Resistance

• Trim or short positions near strong resistance.
• Place stop-loss just above confirmed breakout.

3.Breakout Trading

• After a volume-backed breakout, wait for a retest confirmation before entering.
• Target can be projected using prior range height.

V. Risk Management and Key Considerations

• Multi-timeframe validation: Support/resistance on daily charts is more reliable than on 1H charts.
• False breakout risk: Markets often create traps. Waiting for retests is safer.
• Dynamic adjustment: Levels shift with volatility; update them as price evolves.
• Avoid clutter: Too many lines distort judgment; focus on repeatedly validated levels.

Support and resistance are not foolproof predictive tools, but rather a “map” that helps traders understand the distribution of market forces.

In practice, the core logic for improving win rates lies in: identifying key levels + waiting for confirmation + applying strict risk management.

In the highly volatile crypto market, mastering the methods for identifying support and resistance provides traders with an added layer of certainty and advantage amid complex price action.

Note:

Personal opinion, for reference only. Opportunities and risks abound, always do your research before investing.