Copy Trading Master’s Winning Strategies Review — Episode 111

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

25x leverage long on $W, opening price 0.085 USDT, closing price 0.10641 USDT, single-trade ROI +629.71%. As shown in the figure below:

3.Trade Review

3.1 Market Background

1) On September 12, U.S. CPI for August rose 2.9% year-on-year, in line with expectations, slightly higher than last quarter’s 0.4%. Core CPI increased 2.9% from a year earlier, also in line with expectations and slightly above the previous quarter’s 0.4%. The year-over-year core CPI was 3.1%, compared with 0.3% last quarter, both matching forecasts. The data showed no inflationary pressure from tariffs, while initial jobless claims unexpectedly rose that week, outlining a picture of moderate inflation and slowing employment.

Citi’s analysis suggests that inflation is mainly driven by one-off factors, and core PCE may decline further, supporting a rate cut at next week’s FOMC meeting. The bank expects the Fed to cumulatively cut rates by 125 basis points over the next five meetings, potentially bringing the policy rate below 3%.

As a result, expectations for an October rate cut surged. All three major U.S. stock indexes hit record closing highs, with the Dow breaking 46,000 for the first time. U.S. Treasury yields fell across the board, with the 10-year dropping below 4% at one point. The dollar weakened, gold hit an inflation-adjusted all-time high, Bitcoin broke above $114,000, and Ethereum performed even stronger.

Citi pointed out that the rise in goods and services prices is mostly seasonal or one-off, with limited tariff pass-through effects, and housing inflation is unlikely to form a new trend. Overall, the data provides sufficient conditions for the Fed to start a rate-cutting cycle as soon as possible.

2) During the week of September 15, as the Fed’s policy meeting (scheduled for early Thursday) approached, risk-off sentiment rose, triggering some selling pressure. However, overall, the crypto market only experienced mild volatility and a modest pullback, which remained within the scope of a healthy correction.

3.2 Trade Analysis

Between September 10 and 13, the crypto market recorded a notable rally, with Bitcoin steadily climbing from around $100,000 to face resistance near the $116,500 level. As the Fed’s policy meeting approached, the market experienced a moderate pullback, but the overall structure remained healthy. After a brief retest of support, BTC quickly recovered lost ground, indicating that buying momentum is still solid.

For individual assets, W showed a clear inverse head-and-shoulders pattern on the weekly chart, accompanied by heavy trading volume on the daily chart, with both highs and lows trending upward. The retracement before the policy meeting also reflected a healthy correction, consistent with the rhythm of earlier upward moves followed by consolidations. The price has stabilized around the key inflection point near $0.085, which aligns with the Fibonacci 0.618 level as confluence support. With multiple technical signals overlapping, entering long positions here presents a favorable risk-reward ratio, with stop-loss ideally set below the previous structural low.

Trading background as shown in the chart:

After the policy meeting concluded, Fed Chair Powell released dovish signals, which drove the overall market higher, with W also breaking through the $0.10 threshold and continuing upward. However, the momentum failed to carry into the following Monday, and the price fell below the neckline support. Based on the judgment that the technical setup had failed, the strategy was to exit long positions on the rebound, successfully completing this trade.

3.3 Winning Strategies Summary

Fibonacci Trading Method: Enhancing Win Rate by Combining Support and Resistance

In technical analysis, Fibonacci retracement and extension tools are important methods for identifying potential support, resistance, and target levels. However, relying solely on Fibonacci ratios often leads to “no reaction at the level.” Only when these levels align with key support or resistance zones does the probability of success rise significantly. By mastering Fibonacci’s core levels and validating them with market structure, traders can find higher-probability entries even in uncertain conditions.

Ⅰ. Basic Logic of Fibonacci

• Origin in the Golden Ratio The Fibonacci tool is based on the market’s tendency to follow the “pullback–continuation” rhythm. Key ratios (0.382, 0.5, 0.618, etc.) are considered natural correction and rebound levels.
• Retracement & Extension
• Retracement levels: used to determine where a pullback within a trend may end.
• Extension levels: used to project potential targets and price ranges after a breakout.

II. Key Fibonacci Levels

1. 0.382 Retracement

• Common in strong trends; shallow pullbacks often restart the trend.
• Good for trend-following entries, though tolerance for error is low.

2. 0.5 Retracement

• Not part of the Fibonacci sequence, but widely observed by markets.
• Serves as a psychological level where price often stabilizes.

3. 0.618 Retracement

• Known as the “golden ratio,” the most representative support/resistance.
• If it holds, trend continuation is likely; a break suggests possible reversal.

4. 0.786 Retracement

• A deep retracement, often the trend’s last line of defense.
• A break typically signals a structural trend failure.

5. 1.618 Extension

• Often the first target after a breakout.
• Especially meaningful when the price breaks prior highs/lows with volume.

III. Improving Win Rate with Support & Resistance

• Principle of Confluence When Fibonacci levels align with support/resistance, trendlines, or moving averages, signals strengthen significantly. Example: 0.618 retracement overlapping with a high-volume area boosts buying strength.
• Confirmation, Not Prediction Don’t enter trades blindly just because a Fibonacci level is reached. Confirm with candlestick patterns (hammer, engulfing, etc.) or volume response.
• Multi-Timeframe Confluence When daily and 4H charts show alignment at the same level, signals are stronger and more reliable for swing trades.

IV. Practical Applications

1. Trend Pullback Setup

• In an uptrend, monitor stability within the 0.382–0.618 zone.
• Confirm entries with moving averages or prior highs/lows.

2. Breakout Target Projection

1. Use the breakout leg to project the 1.618 extension as the first target.
2. In strong trends, also watch 2.618 extension levels.

3. Stop-Loss & Risk Control

• Place stops just beyond key Fibonacci levels (e.g., below 0.618 or 0.786).
• Use partial take-profits at extension levels to balance safety and returns.

V. Trading Discipline & Mindset

• Fibonacci is not a “magic line” but a tool for quantifying price action.
• Its real value comes when combined with support/resistance for confluence.
• Entries and exits must follow strict stop-loss/take-profit rules to avoid overtrading on single signals.

The Fibonacci tool highlights “high-probability price zones.” Levels such as 0.382, 0.5, 0.618 retracements and 1.618 extensions deserve the most attention. When these overlap with support/resistance and are confirmed by volume or candlestick patterns, the win rate improves significantly. Used as a validation tool rather than a prediction tool, Fibonacci allows traders to navigate volatile markets with greater consistency.

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